Here, the accounts accessed are
demand deposit accounts at banks, rather than proprietary funds transfer accounts set up by the payment provider.
Chen Yi-tuan noted that the trend among local people transferring funds from
demand deposit accounts to time deposit accounts is unfavorable to the fund momentum for the stock market.
Originally enacted in 1933, Regulation Q prohibited financial institutions from paying interest on commercial
demand deposit accounts. Fast-forward to July 21, 2011, and demand deposits can now earn interest income.
Most G4S cash stays in
demand deposit accounts (DDAs).
A savings account requires a minimum balance of the equivalent of USD5,000, while the minimum in
demand deposit accounts is USD3,000, the report noted.
One of those restrictions was implemented as Federal Reserve Regulation Q, which prohibits banks from paying interest on corporate
demand deposit accounts. It was this restriction that led to many key treasury management services available today, like sweep accounts.
For example, customers who come into a branch location to open savings or
demand deposit accounts (DDA) have a high propensity to accept an instantly prescreened credit product that is offered to them in real time, says Lindeen.
Profits from
demand deposit accounts used by banks for conducting interbank transactions will be big, he said, unveiling an estimate that a 10 basis-point rise of the three-month TIBOR will be equal to an increase in such profits of ''slightly above 10 billion yen.'' TIBOR stands for the Tokyo Interbank Offered Rate.
Smaller banks complain that they are unable to compete for the deposits of businesses precisely because of their inability to offer interest on
demand deposit accounts. Small banks, unlike their larger counterparts, lack the systems to offer compensating balance schemes and sweep accounts that allow these banks to offer businesses credit for or interest on excess demand balances.
Every night all of our
demand deposit accounts are swept into an investment account.
On February 18, 1992 the Federal Reserve Board reduced the reserve requirements on
demand deposit accounts from 12% to 10%, The adjustment was expected to free up $9 billion of funds that were previously bound as required reserves.
72 percent of second quarter deposit growth was in non-interest bearing
demand deposit accounts. Loans totaled $295.8 million at June 30, 2018, an increase of $35.1 million, or 13.5 percent, from the prior quarter, and an increase of $95.1 million, or 47.4 percent, compared to the same quarter a year ago.
