Demand Deposits and Time deposits

Banking Awareness Study Material

Demand Deposits and Time deposits

• Demand Deposit
  A Demand deposit is the one which can be withdrawn at any time, without any notice or penalty; e.g. money deposited in a checking account or savings account in a bank.



• Time Deposit
  Time deposit is a money deposit at a banking institution that cannot be withdrawn for a certain "term" or period of time. When the term is over it can be withdrawn or it can be held for another term.