Business, Legal & Accounting Glossary
An account balance which can be drawn upon on demand, i.e. without prior notice.
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.
You may need to make a quick demand deposit when you need to get your hands on some cash quickly.
When John Smith retired he moved the money from his 401k to a demand deposit account so that he could access his money easily.
The demand deposit account was optimal because the financial analyst recommended a flexible strategy so we had to be able to make changes as needed.
Federal Reserve requirement
reserve ratio
negotiable instrument
currency in circulation
reserve requirement
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Demand Deposit are sourced/syndicated and enhanced from:
This glossary post was last updated: 29th October, 2021 | 0 Views.