Demand Deposit
Funds accessible at any time without prior notice.
Detailed Description
Demand Deposit
What is a demand deposit?
A demand deposit is a type of bank account that allows account holders to withdraw funds at any time without advance notice.
How do demand deposits differ from time deposits?
Demand deposits offer unrestricted access to funds, while time deposits require funds to be kept in the account for a specified period.
What are some common examples of demand deposit accounts?
Common examples include personal checking accounts, business checking accounts, and certain types of savings accounts.
What are the advantages of demand deposits?
The main advantages are liquidity, ease of access, and FDIC insurance for depositors.
Are there any disadvantages to demand deposits?
Yes, they may offer lower interest rates compared to other deposit accounts and might have monthly maintenance fees.