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Name and History of Checking Accounts

Name and History of Checking Accounts - person bearing a...

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NameA transactional account is known as a checking account (or chequing account) in North America,[1] and as a current account or cheque account in the United Kingdom, Hong Kong and some other countries. Because money is available on demand it is also sometimes known as a demand account or demand deposit account (DDA). [edit] HistoryIn Holland in the early 1500s, Amsterdam was a major trading and shipping city. People who had acquired large accumulations of cash began to deposit their money with "cashiers" in order to protect their wealth. These cashiers held the money for a fee. Competition drove cashiers to offer additional services, including paying out money to any
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Unformatted text preview: person bearing a written order from a depositor to do so. They kept the note as proof of payment. This idea spread to other countries including England and the English colonies in North America, where land owners in Boston in 1681 mortgaged their land to cashiers who provided an account against which they could write checks. In the eighteenth century in England, preprinted checks, serial numbers, and the very word "cheque" appeared. By the late eighteenth century, the difficulty of clearing checks (sending them from one bank to another for collection) gave rise to the development of clearing houses....
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