Perbedaan finance dan accounting are quite a few minor details. First the names have different meanings. Another name for checking is transactional, or demand deposits. Savings can be called time deposit, or term deposit.
Depending on the bank, transactional records of finance vary. People can use personal checks instead of cash to pay bills. They also have bank cards and can be used to withdraw money from the bank or ATM machines.
Transactional record has unlimited withdrawals and checks that you can write. Sometimes people have extra money. They do not want to lose it or have it stolen. They deposit it into the bank to keep it safe, or in time deposits to save the money and have it grow with interest given from the bank.
Transactional allow customers to deposit, withdraw, and transfer their money whenever they want to do so. Someone who puts money into a transactional account receives blank forms called checks. To withdraw money some of this money or transfer it to someone else, the person fills out a check and gives it to the person to whom the money is supposed to go.
The payee can cash the check to get the money or deposit the check in a bank. The money is deducted from the account of the person who wrote the check and is added to the account of the payee. A check is not money itself. It is simply and order to the bank to pay money.
Each month a bank prepares statements for customers who have transactional accounts. The statement shows how much money has come into and gone out of the account during the month. Customers who keep their own records can compare their figures with those of the bank. These statements require a tremendous amount of book keeping.
Banks pay interest on money kept in time deposits. The amount of interest paid depends on the type of account. Some accounts earn five percent interest a year. Others may earn seven percent or more. The interest rates are regulated by the Federal Reserve Board.
Someone who deposits money in a term deposit usually receives a passbook that shows the amount of money in the account. Years ago the money was withdrawn only by bringing the passbook to the bank. And only the owner of the book could take out the money.
Now time deposits have bank cards like the transactional and can be used at the bank or ATM machines, but fees will be charged. There are record finances that can be joined with another individual allowing that person to withdraw as well.
Because savings accounts are time deposits, banks can require thirty days notice before the money is taken out. But in practice, money in a time deposit can be withdrawn on demand.
