Which type of deposits with the banks are called
demand deposits? State some important features
of demand deposits.
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Those deposits in the bank accounts that can be withdrawn on demand, are called demand deposits. (i) Demand deposits are accepted widely as a means of payment by way of a cheque along with currency. (ii) They are closely linked to the working of the modern banking system.
Such deposits earn an amount as interest
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.
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