Demand Deposit Definition, Account Types, and Requirements
Demand deposits, for the most part, appear as checking or saving bank accounts. A demand deposit account (DDA) is a bank account from which deposited funds can be withdrawn at any time, without advance notice. DDA accounts can pay interest on the deposited funds but aren’t required to. Term deposits, also known as time deposits, are investment deposits made for a predetermined period, ranging from a few months to several years. Those opened at a credit union carry protection from the National Credit Union Administration (NCUA). Funds are readily available at any time through ATMs, debit cards, or online transfers. ✝ To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. So, that investor’s money is shrinking while it sits there, in terms of real spending power. Amanda Bellucco-Chatham is an editor, writer, and fact-checker with years…