Technical account in the bank – how does it work and what is it for? – Loan repayment

The technical account is an auxiliary account. It is used for various banking operations, including opening bank deposits, loans or topping up prepaid cards. Used to service another financial product, e.g. a loan or a term deposit. However, its functionality is limited – you can perform only a few types of banking operations on it.

Technical account and deposit

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When creating a savings product, e.g. a deposit or savings account , it is necessary to open a personal account in a bank or technical account in order to be able to use these products.

Therefore, if you do not want to create another ROR, the technical account for the deposit may be the solution. You won’t pay for it, which will then go to the deposit.

After breaking or ending the deposit, the money will again be transferred to the technical account assigned to the deposit. Then from this account you will be able to transfer them to your current account. 

Technical account and credit

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You will also meet with a technical account when taking out a loan. It is used to repay a given liability – mortgage , cash , car etc. The whole mechanism is that you transfer funds to pay the liability to the account number you received. Then, on the day set in the loan schedule, the bank collects a specified amount for its repayment.

Technical account and prepaid cards

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The technical account is also used for prepaid cards . You transfer a selected amount of money to your technical account, thus topping up your prepaid card. You can use it up to the amount you have topped up the technical account. You can do such recharging many times.

The card is not personalized, so you can use it as a gift for another person, or give it to a child, e.g. on a school trip or pay in pocket money. You decide how much money you transfer to your account, however, some banks have limits on the amount of such top-ups. 

Can I withdraw money from a technical account?

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Withdrawal of funds from the technical account is rather impossible, especially if the account is associated with a mortgage. In the event of a mistaken transfer of funds to the technical account, they will remain on the invoice. Only when paying the next installment will they be collected.

In this situation, you can reduce the amount of money transferred to repay the next part of the loan by this amount. It is also possible to use these funds for its earlier repayment – after placing an appropriate instruction on the bank’s transaction service.


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