Demand Deposits
Q 1. What is a demand deposit?
Answer-
Demand deposit refers to the deposit of money which can be withdrawn without any prior notice.
Q 2. What are demand deposits and time deposits?
Answer-
A demand deposit can be accessed at any time and withdrawn any amount of money without prior notice, while a time deposit can’t be accessed until a certain lock period is served.
Q 3. What is an example of a demand deposit?
Answer-
Common examples of demand deposits include regular checking of accounts, savings accounts, and also money market accounts.
What are Demand Deposits and Explain their Features?
Demand deposits are types of bank accounts that allow for the prompt, fee-free withdrawal of money by the customer. Depending on the region, these accounts are frequently referred to as checking or current accounts. In India, demand deposits are also known as current accounts or savings accounts.