Checking accounts

A checking account contract is an agreement between two parties with frequent commercial relations, by which both are committed to write down the amount of the operations that they make between them to liquidate them all together in the date that they indicate. These checking accounts can be agreed between companies or individuals, but they are most commonly used in relations between banks and their customers.

Bank checking accounts, in turn, can be of two types: deposit and credit.

A deposit checking account is a banking contract whereby the holder can deposit funds in a bank account, or withdraw them in whole or in part without prior notice. In the case of a credit checking account, the bank grants the customer (borrower) the possibility of obtaining financing up to a pre-set amount (credit limit).

TYPES OF CHECKING ACCOUNTS

Checking deposit accounts can be classified according to various criteria.

I. According to their holders:

Individual: opened in the name of a single holder.
Joint: when there are two or more holders, requiring that any act must be carried out jointly by all the holders, and the entity requires the signature of all of them.
Indistinct: when there are two or more holders, any of them being able to dispose of the funds using only their signature.

II. According to the accrual of interest:

Checking accounts without interest: they are those in which no amount is paid for the deferral of the capitals.
To find the liquidation it will be enough to calculate the difference between the debit and the credit of this account.
Interest-bearing checking accounts: in this case, the funds earn interest for the period between the value date of the transaction and the settlement date of the account.
In checking accounts with interest, this may be:

Reciprocal: when the same rate of interest is applied to the debtor and creditor capitals.
Non-reciprocal: when the rate applied to the debtor capitals is not the same as that applied to the creditor capitals.

To settle these accounts, it is not enough to calculate the difference between the debit and credit amounts; the interest must also be calculated.

4.3. APPRAISAL RULES

To value a transaction in a bank account is to assign a date to it for the purpose of calculating interest. In this sense it is necessary to differentiate between the date on which the transaction takes place (transaction date) and the date considered for the calculation of interest (value date).