Transferring Money

          Individuals and businesses hold money for purchases or payments they expect to make in the near future. One way to hold money is in checkable deposits at depository institutions. When money is held in this form, payments can easily be made by check. The check is an order to the depository institution to transfer money to the party who received the check. This is a great convenience, since checks can be written for the exact amount of payments, can be safely sent in the mail, and provide a record of payment. Institutions can also transfer funds between accounts electronically, making payments without paper checks. Funds transfer can be made by telephone or at automated teller machines (ATMs) connected to a bank's computer.