Difference between revisions of "Demand deposit"
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| − | A ''' | + | A '''demand deposit''' is a [[bank]]'s promise to pay immediately a sum required by a customer who has a deposit with the bank. Another term for it is "checkbook money," because it facilitates the use of checks to make payments instead of cash. |
Demand deposits do not pay interest to their owner. | Demand deposits do not pay interest to their owner. | ||
[[Category:Economics]] | [[Category:Economics]] | ||
Latest revision as of 17:44, June 20, 2009
A demand deposit is a bank's promise to pay immediately a sum required by a customer who has a deposit with the bank. Another term for it is "checkbook money," because it facilitates the use of checks to make payments instead of cash.
Demand deposits do not pay interest to their owner.