People who deposits their money in bank which was withdrawn by their demand is known as demand deposits

Demand deposits refer to a type of account in which the account holder can withdraw funds on demand without any prior notice to the bank. In other words, demand deposits are accounts that allow customers to access their money at any time, and banks are required to provide the funds whenever the account holder requests them.



Some of the key features of demand deposits include:

• Instant access to funds: Account holders can withdraw their funds at any time without any prior notice to the bank.


• No interest: Demand deposits usually do not earn any interest, unlike other types of accounts such as savings accounts or fixed deposits.


• No maturity date: Demand deposits do not have a maturity date, which means that the account can be held indefinitely.


• No restrictions on withdrawals: There are no restrictions on the number of withdrawals that can be made from a demand deposit account.

Some common examples of demand deposits include:

• Checking accounts: Checking accounts are a type of demand deposit account that allows account holders to write checks and use debit cards to withdraw funds from their account.


• Current accounts: Current accounts are similar to checking accounts and are often used by businesses to manage their day-to-day transactions.

Demand deposits are important for several reasons:

• Liquidity: Demand deposits provide a high level of liquidity, which means that the funds can be accessed quickly and easily when needed.


• Convenience: Demand deposits are convenient for individuals and businesses who need to access their funds frequently.


• Stability: Demand deposits are generally considered to be a stable source of funding for banks, as they are less likely to be withdrawn in times of economic uncertainty compared to other types of accounts.

In conclusion, demand deposits are an important type of account that provide instant access to funds and are convenient for individuals and businesses. They are a stable source of funding for banks and provide a high level of liquidity.