Non-Interest Bearing Account
A non-interest bearing account is an account where funds are deposited and held for a prolonged period of time but yield no returns.
A non-interest bearing account is most common in situations where a financial institution must withhold funds from a client of business partner to mediate risk in the relationship.
The financial institution will hold said funds in an account for a pre-determined period of time, but is not obligated to pay interest on such funds, as would be done in more traditional currency accounts such as a savings account at a bank.
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