Definition of Demand deposit:
A demand deposit account (DDA) consists of funds held in a bank account from which deposited funds can be withdrawn at any time, such as checking accounts. DDA accounts can pay interest on a deposit into the accounts but aren’t required. A DDA allows funds to be accessed anytime, while a term deposit account restricts access for a predetermined time. .
DDA accounts provide the money consumers need to make a purchase. Funds can be accessed at any time. If depositors were required to notify their financial institutions before withdrawing funds, the depositors would have challenges making everyday purchases and paying bills. However, DDA can also mean direct debit authorization, which is a debit from an account for purchasing a good or service. .
Bank account that allows money to be withdrawn from the available balance, by the account holder at his or her will and by any means, without notice to the bank.
A deposit of money that can be withdrawn without prior notice.
How to use Demand deposit in a sentence?
- Money will move from Joes demand deposit account to a money market demand deposit account with a bank.
- Demand deposit accounts can have joint owners, where both owners must sign to open the account, but only one account holder has to sign to close the account. .
- Money market accounts, or other accounts that limit withdrawals or deposits, aren't demand deposit accounts. .
- Demand deposits provide the money consumers need for purchasing daily expenses, where funds can be withdrawn at any time from the depository institution. .
Meaning of Demand deposit & Demand deposit Definition