What is the difference between a transaction and a non-transaction account? I do transactions on all my accounts.

"Transaction account" is a term used by banks and their regulators to describe a checking account. It includes NOW accounts, checking with interest, and checking without interest. It is distinguished from "savings accounts" and "time accounts."

"Transaction" accounts are subject to reserve requirements. That means that a bank that accepts deposits in a transaction account has to keep a part of the deposit (10% of a bank's transaction balances over about $45 million) "in reserve," usually deposited at a Federal Reserve Bank.

Savings and time deposits (time deposits include certificates of deposit and club accounts) are typically free of any reserve requirements.

Another way of explaining "transaction accounts" is to say they are accounts designed to assist us in spending, where savings and time accounts are designed to assist us in saving or investing.

Money Market Deposit Accounts, Money Market Accounts, etc. are considered savings accounts, even though you can write checks on your MMDA or MMA.

Savings and time deposits have transaction limits imposed by federal regulation.

Are nontransactional accounts an asset account?

I don't understand your question. Your deposits are all your assets. They are a liability to the bank.