DEMAND DEPOSIT Meaning and
Definition
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Demand deposit refers to a type of account offered by financial institutions where money can be deposited and withdrawn on demand, without prior notice. It is a common form of transaction account provided by banks and other similar establishments to their customers. Also known as a checking account, current account, or transactional account, it allows depositors to access their funds readily to make purchases, payments, or transfers.
In practice, demand deposits provide a convenient means for individuals and businesses to manage their day-to-day financial activities. Depositors can deposit funds into the account at any time, electronically or by physically depositing cash or checks. Likewise, they can withdraw funds as needed through various means such as writing checks, using debit cards, or performing online transfers.
Demand deposits are typically non-interest-bearing accounts, meaning that no interest is earned on the deposited funds. However, financial institutions may charge certain fees for maintaining the account or specific transactions, such as overdraft fees if a withdrawal exceeds the available funds. The depositor can view their account balance, transaction history, and manage the account online or through other banking channels.
Overall, demand deposits play a crucial role in facilitating everyday monetary transactions for individuals and businesses, offering a safe and accessible way to store and utilize funds instantaneously.
Common Misspellings for DEMAND DEPOSIT
- semand deposit
- xemand deposit
- cemand deposit
- femand deposit
- remand deposit
- eemand deposit
- dwmand deposit
- dsmand deposit
- ddmand deposit
- drmand deposit
- d4mand deposit
- d3mand deposit
- denand deposit
- dekand deposit
- dejand deposit
- demznd deposit
- demsnd deposit
- demwnd deposit
- demqnd deposit
Etymology of DEMAND DEPOSIT
The word "demand deposit" can be broken down into two parts: "demand" and "deposit".
The term "demand" originates from the Latin word "demandare", which means "to entrust". In English, it came to refer to an authoritative request or calling for something.
The word "deposit" stems from the Latin word "deponere", which means "to put down" or "to place". It has been used in English to indicate the action of placing money or valuables into a bank for safekeeping.
When combined, "demand deposit" refers to a type of bank account where funds can be withdrawn by the account holder at any time on demand. The term came into existence to differentiate it from time deposits or fixed-term deposits that cannot be withdrawn before a specified period.
Similar spelling word for DEMAND DEPOSIT
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