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What Is a Demand Deposit?

By Robin Hartill, CFPUpdated Aug 7, 2025 at 8:36 PM

Key Points

  • Demand deposit accounts allow immediate money access and are FDIC or NCUA insured up to $250,000.
  • Interest rates on demand deposits are low, reflecting their high liquidity and immediate access features.
  • These accounts suit daily expenses, emergency funds, or short-term savings, offering various withdrawal methods.

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