Understanding how each one works is important when deciding where to keep your money. There are also time deposit accounts and negotiable order of withdrawal (NOW) accounts. A checking account is the best example of a demand deposit account in action.Ī DDA isn’t the only type of account banks can offer, however.
These accounts are most useful for managing everyday spending, paying bills or withdrawing cash. In other words, money can be withdrawn from a DDA on demand and as needed. A demand deposit account (DDA) is a type of bank account that offers access to your money without requiring advance notice.
