A bank account (a type of checking account) that allows its holder to withdraw from deposited funds on demand, i.e. without advance notice. This is in contrast with a time deposit which is not to be freely accessed over a preset period of time. Most ordinary savings and checking accounts constitute demand deposit, with funds being accessible by account holders. However, with checking accounts, checks can be drawn on the money deposited in the account. Checking accounts allow depositors to withdraw money immediately after it has been posted to the account. But that comes at a cost, where account holders lose are deprived of entitlement to earn interest on deposited money.
March 13, 2025
