Unlock the Language of Bank Accounts: Guide to Types, Structures & Operations

Only by fully understanding the terminology of bank accounts can one build the underlying language framework of the system.

This article dissects the concepts related to “account” from basic concepts, account classification, structure, medium, relationships, operations, general ledger, internal accounts, payment settlement, and risk control.

01. Basic Concepts

1. Account is a carrier set according to accounting subjects, with a certain format and structure, used to reflect the increase and decrease of accounting elements and their results.

2. Account Number is the login credential in the system and also the identifier of personal information.

3. Customer Number is the unique identifier for a customer in the bank system, linking all accounts related to the customer. One customer number can correspond to multiple primary accounts, e.g., an individual may have both debit and credit card primary accounts. The customer number itself does not directly participate in transactions; it aggregates all assets and liabilities of the customer.

4. Primary Account is the account displayed to the customer for transactions, such as a bank card number or passbook account number. Primary accounts usually carry a card BIN (e.g., 622848 for a rural bank debit card) and may map to multiple underlying bookkeeping accounts.

5. Bookkeeping Account is the actual entity account that records fund movements, used for accounting processing. It corresponds to specific amounts and controls interest calculation rules, recording balances, transaction details, etc. Bookkeeping accounts are not visible to customers and belong to the accounting entity. Compared with system accounts, bookkeeping accounts focus on accounting‑level recording and management.

6. System Account is similar to a bookkeeping account but is a technical entity used internally by the system. It is mainly used for temporary posting, error handling, etc., such as a provisional account when an ATM cash dispense is not recorded. System accounts are usually cleared at day‑end and do not appear in customer statements.

7. Virtual Account is a non‑physical account set up for categorizing funds; it does not participate in actual accounting.

8. Internal Account is an account used internally by the bank and does not directly handle customer business.

9. Joint Account is an account opened jointly by two or more individuals (no more than five), requiring agreed procedures for withdrawals.

02. Account Classification

2.1. By Customer Type

10. Personal Account is an account opened by an individual with personal identification documents in the name of a natural person.

11. Corporate Account is an account opened by a company to meet its business needs.

12. Inter‑bank Account is an account used for fund transfers between banks.

2.2. Personal Account Sub‑types

13. Class I Account is a full‑function account with no usage restrictions, capable of handling all types of financial services.

14. Class II Account is similar to a “wallet” account, with a certain transaction limit, suitable for daily small‑amount payments and consumption.

15. Class III Account is similar to a “pocket money” account, used only for small‑amount transactions such as online payments.

2.3. Corporate Account Sub‑types

16. Basic Account is the main account of an enterprise; each enterprise can open only one, used for daily transfer settlement and cash receipt/payment.

17. General Account is an account opened by an enterprise at a bank other than the one where the basic account is held, for borrowing or other settlement needs.

18. Temporary Account is an account opened for temporary business activities, generally valid for no more than two years.

19. Dedicated Account is an account opened for specific purpose funds, such as capital construction or renovation funds.

2.4. By Function

20. Demand Deposit Account allows funds to be deposited and withdrawn at any time, with no fixed term and high liquidity.

21. Time Deposit Account has a fixed term; funds generally cannot be withdrawn arbitrarily during the term, and the interest rate is relatively higher.

22. Loan Account records loan business, reflecting loan disbursement, repayment, and interest calculation.

23. Deposit Guarantee Account is a dedicated account for holding guarantee deposits, ensuring contractual obligations of both parties.

2.5. By Content

24. Asset Account reflects the bank’s asset status, such as cash, loans, investments, etc.

25. Liability Account reflects the bank’s liability status, such as deposits and borrowings.

26. Equity Account reflects the owner’s equity of the bank, such as paid‑in capital and capital surplus.

27. Cost Account reflects various costs incurred during bank operations, such as operating costs and management expenses.

28. Profit and Loss Account reflects the bank’s operating results over a period, including revenue and expense accounts, used to calculate profit or loss.

29. Off‑Balance Account records special business or matters not included in the balance sheet, such as contingent liabilities and commitments.

03. Account Structure

30. Parent‑Child Account denotes a hierarchical relationship where the parent account manages and controls subordinate child accounts.

31. Mother‑Real, Child‑Virtual describes a structure where the mother account is a real account with actual fund access, while the child account is virtual, used for classification or specific purposes and does not directly participate in fund transactions.

32. Mother‑Virtual, Child‑Real is the opposite structure: the mother account is virtual and does not handle funds, while the child account is a real account that carries out actual fund access and transaction responsibilities.

33. Multi‑Level Ledger refers to ledgers opened under the same account for detailed accounting, facilitating finer management and recording of funds within the account.

34. Account Tree represents a multi‑level, multi‑branch hierarchical account structure that clearly displays relationships and connections among accounts.

35. Composite Account (also called an AIO – All‑In‑One account) can contain multiple different account types, such as deposit and loan accounts, providing a one‑stop financial service for the customer.

36. One Card, Multiple Accounts means a single bank card can be linked to multiple accounts, allowing customers to manage several accounts with one card.

37. One Account, Multiple Cards indicates that a single account can be issued multiple bank cards, giving customers the flexibility to use different cards for transactions.

04. Account Medium

38. Debit Card is a card that requires prior deposit before consumption; the cardholder must preload funds to conduct purchases or cash withdrawals.

39. Passbook is a paper record of deposit transactions, used to detail a customer’s deposits, withdrawals, and other activities.

40. Deposit Certificate is a proof of a time deposit; after the customer deposits funds for a agreed term, the bank issues a certificate as evidence.

41. Multi‑Passbook is a passbook that can record multiple deposits, facilitating unified management and inquiry of several deposits.

42. Check is a payment instrument issued by the drawer, authorizing the bank or other financial institution to pay a specified amount to the payee or holder upon presentation.

43. Draft is a bill issued by the drawer, authorizing the payer to unconditionally pay a specified amount to the payee or holder on a designated date, commonly used for inter‑regional settlement.

44. Corporate Settlement Card is a settlement tool provided to corporate customers to facilitate daily fund receipt, payment, and transfer.

45. Supplementary Card is an additional card linked to a primary card, usually sharing the same account; its usage rights and limits may be set by the primary cardholder.

46. Virtual Card is a card without a physical medium; customers can apply and use it electronically, offering convenience and security.

05. Account Relationship

47. Vostro Account is an account opened by another bank in our bank, also called an incoming account, used to record fund flows between the other bank and our bank.

48. Nostro Account is an account opened by our bank in another bank, also called an outgoing account, used to record fund settlement between our bank and the other bank.

49. Linked Account is an account that establishes an association with other accounts to enable fund transfers, information sharing, and other functions.

50. Default Account is the account automatically selected by the system for completing a transaction; users can modify the default account settings as needed.

51. Associated Account refers to an account that has business ties with other accounts, based on fund flows, cooperation, or other factors.

52. Fund Collection Account is a dedicated account for gathering funds from other accounts, facilitating centralized fund management and allocation for enterprises or individuals.

53. Cash Pool is the total balance of all sub‑account balances under a master account, reflecting the overall fund status of an enterprise or group and enabling efficient fund dispatch and risk management. It is a statistical concept without automatic fund allocation; dispatch requires manual operation, and each sub‑account accrues interest independently.

54. Cash Pool (also called a virtual pool) is a mechanism for centralized fund management established by corporate customers. It allows groups to manage member unit funds more efficiently, improving fund utilization. Implementing a cash pool requires a group agreement and may involve cross‑border tax compliance. The pool supports real‑time linkage between master and member accounts, with zero‑balance or fixed‑amount collection methods, day‑in‑day‑out overdraft, automatic borrowing, and interest calculation based on net positions.

06. Account Operations

55. Account Opening refers to the business operation of creating a new account.

56. Account Closure refers to the business operation of terminating an existing account.

57. Report Loss is the procedure a customer can apply for when the account medium (e.g., card, passbook) is lost.

58. Oral Report Loss is a temporary loss‑reporting method; the customer must complete formal loss procedures at the bank within five days.

59. Formal Report Loss requires the customer to provide valid identification documents and complete formal loss procedures at the bank to ensure account security.

60. Unfreeze refers to lifting the loss‑report status of an account, restoring normal use.

61. Freeze is an operation that restricts account usage, usually for security or legal reasons.

62. Account Freeze prohibits any fund movement within the entire account.

63. Amount Freeze freezes only a portion of the funds in an account, while the remaining funds remain usable.

64. Judicial Freeze is a freeze ordered by judicial authorities according to law, requiring the bank to freeze a specific account.

65. Unfreeze removes the freeze status from an account or funds, restoring normal usage.

66. Dormant Account is an enterprise account with no receipt or payment activity for a long period, typically managed as a dormant account by the bank.

67. Transfer to Dormant is the measure of converting qualifying accounts to a dormant status for more effective bank management.

68. Activate refers to re‑enabling a dormant (e.g., dormant) account, restoring it to normal operational status.

07. General Ledger

69. Accounting Subject is an item used to classify and record specific accounting elements; it is the foundation of accounting.

70. Daily Subject Summary Sheet records the daily debit and credit amounts and the number of vouchers for each accounting subject, facilitating preliminary verification and statistics.

71. General Ledger is a book established according to accounting subjects, reflecting the balance of debit and credit sides for each subject, a crucial tool for accounting.

72. Daily Statement reflects all bank business activities of the day, detailing receipts, payments, transfers, and other transactions.

73. Accounting Entry records the debit and credit accounts and amounts for each economic transaction, the basic operation of accounting.

74. Double‑Entry Accounting is a method that requires each transaction to be recorded in two or more accounting subjects to ensure completeness and accuracy.

75. Debit‑Credit Accounting uses “debit” and “credit” symbols as the double‑entry method, widely applied in accounting.

76. Accounting is the means of fully, continuously, and systematically reflecting and controlling accounting objects, the core of accounting work.

77. Reconciliation is the process of verifying accounts to ensure records are correct, an indispensable part of accounting.

78. Write‑off is the operation of removing processed items from pending accounts to keep records clear and accurate.

79. Pending Write‑off refers to temporary accounts awaiting subsequent verification and write‑off, usually generated during business processing.

08. Internal Account Related

80. Standard Account is an account opened to meet the unified requirements of system accounting.

81. Write‑off Account manages detailed transaction entries and supports partial write‑off operations.

82. Clearing Account is a dedicated account for settling debt‑credit relationships between different financial institutions.

83. Transitional Account is a temporary account set up for accounting and management needs, used to temporarily hold funds or information.

84. Voucher Account manages off‑balance vouchers, ensuring accurate recording and tracking.

85. Manual Account is an internal account created manually, usually for specific business or temporary needs.

86. In‑Library Account manages the storage status of vouchers, recording their entry, storage, and custody.

87. In‑Use Account tracks the usage status of vouchers, monitoring issuance, use, and return.

88. Pending Destruction Account manages vouchers awaiting destruction, ensuring secure storage and approval before disposal.

89. Important Blank Voucher is a blank voucher without key elements such as amount, requiring high security and management.

90. Valued Document refers to vouchers with face value that represent a certain amount or right, such as checks and drafts.

09. Payment Settlement

91. Reserve Fund Account is an account opened by a payment institution at a bank to hold customer reserve funds.

92. Custody Account is a specialized account system designed for P2P and similar businesses to ensure safe fund storage and compliance.

93. Payment Account is a virtual account opened by a payment institution for customers to conduct payments, transfers, and other operations.

94. Acquiring Account is the account merchants use to receive payment funds, typically linked with a payment institution or bank for rapid fund arrival.

95. Points Account records customer points information; customers can redeem goods or services using points.

96. Virtual Currency Account records holdings of virtual currencies, supporting storage, transfer, and other functions.

97. Coupon Account records customer coupon information; customers can use coupons for discounts during consumption.

10. Risk Control

98. Real‑Name System is an account opening system that requires verification of the customer's true identity.

99. Anti‑Money‑Laundering comprises measures to prevent and combat money‑laundering activities, maintaining financial order and security.

100. Large‑Transaction Reporting requires financial institutions to report transactions exceeding a prescribed amount to relevant authorities.

101. Suspicious Transaction Reporting mandates financial institutions to promptly report transactions that appear suspicious to relevant authorities.

102. Customer Identity Verification is the process of confirming a customer's identity during financial services to ensure authenticity and legality.

103. Network Verification verifies and validates citizen identity information through interconnected systems to ensure authenticity and accuracy.

104. Telecom Fraud Prevention implements measures to prevent and combat telecom and online fraud, protecting customer funds.

105. Account Classification Management classifies accounts based on risk levels for more effective risk control.

106. Limit Management sets transaction amount caps on accounts to control risk and safeguard fund security.

107. Risk‑Based Pricing applies differentiated pricing based on the risk level of customers or transactions, reflecting risk costs appropriately.