It stands for demand deposit account; a type of bank account that allows its holder to withdraw money from it on demand- i.e., at any time without prior notice (e.g. in a current account). Such accounts are held in commercial banks and similar institutions (like credit unions), and pay a low or a zero interest rate, due to availability of their funds on a demand basis.

Demand deposit accounts are almost equivalent to cash because deposited funds are always at the accountholder’s disposal via a debit card, checkbook, or transfer. However, this advantage comes at a cost represented in the zero interest these accounts pay compared to time deposit accounts.

DDA banking accounts have many types including checking accounts (current accounts), shared draft accounts, and savings accounts.