Is Bank a Current Asset?

Written by True Tamplin, BSc, CEPF®

Updated on January 02, 2023

Funds held in bank accounts may or may not be current assets depending on for how long the account is held. A current asset is any asset that is expected to provide an economic benefit for or within one year. Funds held in bank accounts for less than one year may be considered current assets. Funds held in accounts for longer than a year are considered non-current assets.

Is Bank a Current Asset FAQs

Is a bank a current asset?

Funds held in bank accounts may or may not be current assets depending on for how long the account is held.

What is a current asset?

A current asset is any asset that is expected to provide an economic benefit for or within one year.

Why would funds in a bank be considered a current asset?

Funds held in bank accounts for less than one year may be considered current assets.

Why wouldn't funds in a bank account be considered a current asset?

Funds held in accounts for longer than a year are considered non-current assets.

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.