UK Accounting Glossary
A demand deposit is a type of financial account that allows the account holder to withdraw funds on demand. This means that demand deposit balance withdrawals can be made without previous notice. In this respect, a demand deposit is very different from a term deposit, which carries certain temporal access restrictions. Demand deposit accounts are offered by savings banks and other retail institutions. The most common accounts that fall under demand deposit category are checking and savings accounts. Demand deposit transactions can be performed in person, via automatic teller machines (ATMs), or through online banking. Nimble and convenient, demand deposit accounts are the most popular financial savings vehicles. A collective of demand deposit accounts represents a significant portion of the nation’s money supply.
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This glossary post was last updated: 7th February 2020.