What is a demand deposits least two advantages or demand deposite?
Answers
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.
Demand Deposit is the method to deposit surplus money with bank..
There are many advantages to it..
1) Banks accept deposited and also pay an amount as interest on the deposits. In this way, people’s money is safe and also earn an amount of interest.
2)People have the provision to withdraw money as and when they require.
3)Demand deposit also supports cheque facilities making big money transactions easier.
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