Okuzeka
Finance & Banking vocabulary · Accounts & Deposits

Demand deposit

Meaning in finance & banking, with examples

nounCommon term

In finance & banking, demand deposit means: Money in a bank account that the customer can withdraw at any time without notice, such as the balance in a current account.

In Turkish: vadesiz mevduat

How it is used

Used in bank financial statements, treasury and regulation. Demand deposits usually pay little or no interest, so they are cheap funding for banks, but they can leave quickly. Analysts watch the share of demand deposits in total deposits. The opposite is time deposits.

Example sentences

  1. Demand deposits make up about a third of our total deposits.

  2. The growth in demand deposits lowered the bank's funding costs.

Common collocations

  • demand deposits
  • share of demand deposits
  • demand deposit account
  • sight deposits
  • time depositMoney placed in a bank for a fixed period, such as 32 days or one year, at an agreed interest rate. Taking it out early usually means losing some or all of the interest.
  • current accountAn everyday bank account for receiving a salary, paying bills and making card payments. It pays little or no interest, and the money can be used at any time.
  • depositMoney that you put into a bank account, or the act of putting it there. For a bank, customer deposits are its main source of funding.
  • liquidityHow easily an asset can be turned into cash without losing value, or how much cash and easily sold assets a bank or company has to meet its payments.
  • net interest marginA bank's interest income minus its interest expense, divided by its average interest-earning assets. It shows how profitably the bank lends and invests.

More terms: Accounts & Deposits

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This page explains English vocabulary for learners. It is not financial advice.