This account is to be used when an agency has a regular noninterest bearing checking account at a financial institution. Also, any Institutional Trust Funds on deposit at State Treasurer will be automatically recorded by the North Carolina Accounting System to Account 111120. At year end the amount of Institutional Trust Fund cash on deposit with State Treasurer should be reclassified from Account 111120 to Account 111220. This account is to be used when an agency has a regular interest bearing checking account at a financial institution. This account is to be used when an agency has a savings account at a financial institution.
Savings accounts are time deposits.
Generally passbook savings accounts are regarded as readily available funds even though banks are authorized to require up to 30 days notice of withdrawal. This account is to be used when an agency or university has a NOW account at a bank or saving and loan institution. NOW accounts are time deposits. NOW accounts are, in effect, interest-bearing checking accounts. This account is to be used when an agency has a Money Market Account at a financial institution.