Correspondent account

A correspondent account is like a piggy bank your parents have at another bank. Your parents put money into the piggy bank, and when you need it later or if someone else needs it, they can take it out from that bank. In the same way, banks have correspondent accounts with each other. When one bank's customer sends money to another bank's customer, the banks use their correspondent accounts to transfer the money safely and securely. It's like a special piggy bank where different banks keep their money safe and can easily transfer money back-and-forth.