What is a non-payment account?
Definition of non-payment account
Non-payment accounts, otherwise known as non-transactional accounts, are bank accounts that are not payment accounts.
Banks usually impose some form of restriction on how money can be paid in or out of non-payment accounts. Depending on the bank, the consequences of withdrawing money from a non-payment account can include incurring a fee or losing interest.
A few examples of non-payment accounts are:
- individual savings accounts (ISA)
- fixed term accounts
- retirement investment accounts
- savings accounts