A deposit (bank liability) that does not have a specified maturity or fixed term. Non-maturity deposits (NMDs) take many forms including demand deposit accounts, negotiable order of withdrawal (NOW) accounts, passbook accounts, and money market deposit (MMD) accounts.

Such deposits are held by means of transactional accounts and savings accounts, and the customers of the bank who hold or own these accounts are known as depositors or deposit owners. These customers can withdraw money from, and deposit money into, their accounts at any time. From a bank’s perspective as a depositee, such accounts are highly valuable as an easy or less costly source of funding.

Deposit owners (NMD accountholders) receive a deposit interest rate (deposit rate or account rate). Deposit rates are determined and set based certain policy rates, i.e., rates used by central banks and government to control or adjust interest rates to influence the economy.