Question

What are demand deposit. List it advantage.

Answer 1

A demand deposit account is a bank account where you can withdraw any time you want, without paying any additional charges for it.

The advantages of demand deposits are:

• Flexibility of Withdrawals: As the name suggests, you can ‘demand’ money for withdrawal any time you want, so you have liquidity of funds.

• No Extra Fees: Withdrawal from a demand deposit account does not have any encashment charges.

Answer 2

A demand deposit account is a bank account where you can withdraw any time you want, without paying any additional charges for it. The advantages of demand deposits are: Flexibility of Withdrawals: As the name suggests, you can 'demand' money for withdrawal any time you want, so you have liquidity of funds.