Demand Deposit

Filed Under » ,
Dictionary Says

Definition of 'Demand Deposit'

An account from which deposited funds can be withdrawn at any time without any notice to the depository institution.
Investopedia Says

Investopedia explains 'Demand Deposit'

This account allows you to "demand" your money at any time, unlike a term deposit, which cannot be accessed for a predetermined period (the loan's term).

Most checking and savings accounts are demand deposits, accessible by the account holder at any time.

Related Definitions

  •

    Drawing Account

    An accounting record maintained to track money withdrawn from a business by its owners. A drawing account is used primarily for businesses that are taxed as sole proprietorships or ...
    Read More »

  • Checking Account

    A transactional deposit account held at a financial institution that allows for withdrawals and deposits. Money held in a checking account is very liquid, and can be withdrawn using ...
    Read More »

  • Savings Account

    A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate. Depending on the specific type of savings account, the ...
    Read More »

    • Sweep Account

      A bank account that automatically transfers amounts that exceed (or fall short of) a certain level into a higher interest earning investment option at the close of each business day. ...
      Read More »

    • Term Deposit

      A deposit held at a financial institution that has a fixed term. These are generally short-term with maturities ranging anywhere from a month to a few years. When a term deposit is ...
      Read More »

    • Bank Card

      Any card issued against a depositary account, such as an ATM card or a debit card. Sometimes the phrase is also used to refer to Visa and Mastercard, since these are also issued by ...
      Read More »

    • BanxQuote Money Markets Index

      A money market index, which can be used as a rate-comparison tool by consumers and financial institutions. BanxQuote provides many kinds of data and tools. The money market index gives ...
      Read More »

    • Bank Rate Monitor Index

      An index of money market interest rates paid on deposits at 100 banks in the United States. The index is comprised of the average of interest rates paid on different types of consumer ...
      Read More »

    • Nonpersonal Time Deposit

      Time deposit accounts held by corporate bank customers that pay a fixed amount of interest for a specified time period. Money may not be withdrawn without advance notice at the risk of ...
      Read More »

    • Money At Call

      A short-term loan that does not have a set repayment schedule, but is payable immediately and in full upon demand. Money-at-call loans give banks a way to earn interest while retaining ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions