Dedicated Accounts
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Dedicated Accounts
A dedicated account is a type of bank account that is opened in the name of a single business or individual and is used exclusively by that entity. It’s also known as a segregated account. This means that the funds within the account belong solely to the account holder, and the activity within the account relates only to that individual or business.
Advantages of Dedicated Accounts:
- Transparency: All transactions are clearly associated with the account owner, simplifying accounting and auditing processes.
- Control: The account holder has full control over the funds and transactions.
- Security: In case of any financial institution’s problems, having a dedicated account can offer better protection for the funds since they are not pooled with others.