Demand Deposit

Definition: A bank deposit payable on demand, commonly associated with a checking account rather than a fixed maturity.

Example

An account holder withdraws available checking-account funds without waiting for a certificate of deposit to mature.

Keep the distinction clear

Availability can still be affected by lawful holds and account terms. A demand deposit describes a bank account, not an earnest-money demand between buyer and seller.

Related terms

Federal Deposit Insurance Corporation (FDIC) · Liquidity · Escrow Account

Keep studying

Florida Escrow Accounts: Personal Funds and Interest-Bearing Accounts

References: FDIC: understanding deposit insurance

Pronunciation (US): dih-MAND dih-PAH-zit (capitals show stress)

Pronunciation reference: Merriam-Webster