What is a demand deposit why is it called that

Answer:

The demand deposit is an account with any commercial bank or financial institute which allows a user or a depositor to withdraw and use the funds without informing or asking permission from bank.

Explanation:

As the word only suggest that the deposits to a bank that can be used at any time which is normally referred as the demand deposit. It is very necessary for the consumers to meet daily needs and expenses.

The benefits involve zero per cent interest, there is no barrier on number of transactions, no eligibility is required, and funds can be paid and withdrawen on demand.  Checking account is a very good example of it that allows one to withdraw at any time.

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