Question

Why are the deposits in the bank account
called deposits?​

Answer 1

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People deposit their savings in banks. They can withdraw their money whenever required. Because the deposits in the bank account can be withdrawn on demand, these deposits are called demand deposits.

Answer 2

Answer:

People deposit their savings in banks. They can withdraw their money whenever required. Because the deposits in the bank account can be withdrawn on demand, these deposits are called demand deposits. ... Deposits also act as direct money in case of cheque payments.

Extra information

Those deposits in the bank accounts that can be withdrawn on demand, are called demand deposits.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.