Demand Deposit

Funds in a bank account that may be withdrawn on demand of the customer. Most demand deposits are in checking accounts and savings accounts, because funds in these accounts are available to the customer at any time (unless they are under a check hold). Under the Expedited Funds Availability Act of 1987, banks in the United States must grant availability to demand deposits within a certain number of days.

demand deposit

A checking account balance held at a financial institution. Because demand deposits constitute one of the most important segments of the nation's money supply, the financial community closely monitors their size. Compare time deposit. See also M1.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

demand deposit

see BANK DEPOSIT, COMMERCIAL BANK.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

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References in periodicals archive

To illustrate the magnitude of refinancing-related payments, suppose that the homeowner now refinances the mortgage on the 25th day of the month, with the servicer receiving funds on the 30th and holding them (as a fiduciary) in a demand deposit custodial account until remittance to investors around the middle of the following month.

The effect of mortgage refinancing on money demand and the monetary aggregates

For example, the Board strongly endorses the measures in this bill that would immediately allow banks to pay interest on demand deposits and the Federal Reserve System to pay interest on the required and excess reserve balances held by depository institutions at the Federal Reserve Banks.

Statements to the Congress

These legislative proposals are important for economic efficiency: Unnecessary restrictions on the payment of interest on demand deposits and reserve balances distort market prices and lead to economically wasteful efforts to circumvent them.

Statements to Congress

Average demand deposits increased $1.4 billion, or 4%, comprised of a $1.3 billion, or 5%, increase in average commercial demand deposits and a $0.1 billion, or 1%, increase in average consumer demand deposits.

Huntington Bancshares Incorporated announces income of $1.2 billion

The gross value for these deposits as of the end of May 2016 includes the time deposits that stood at RO 3,501.8 million, savings deposits of RO 4,492.1 million and demand deposits of RO 3,718.5 million, the report further added.

Private Deposits at Commercial Banks Rise 3 Percent

The balance of demand deposits rose 0.7 percent to 408.2 trillion yen for the fifth straight month of gain.

LEAD: Japan's money supply rises 2.8% to highest level in nearly 7 years