Demand Deposit

A demand deposit is a type of bank account that allows the account holder to withdraw funds at any time. Demand deposits are considered to be the most liquid type of deposit, as they can be accessed immediately. Demand deposits are typically held at commercial banks and savings banks.

There are two main types of demand deposits: checking accounts and savings accounts. Checking accounts allow account holders to write checks, make electronic payments, and use debit cards. Savings accounts typically offer higher interest rates than checking accounts, but they do not allow account holders to write checks or make electronic payments.

Demand deposits are a safe and convenient way to store money. They are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor. Demand deposits are also a good way to earn interest on your money. However, it is important to note that interest rates on demand deposits are typically lower than interest rates on other types of investments, such as certificates of deposit (CDs) or money market funds.

Demand deposits are a popular choice for individuals and businesses who need access to their money quickly. They are also a good choice for people who are looking for a safe and secure place to store their money.