The sight deposit is a type of Bank deposit. In financial terms, the demand deposit is synonymous with a checking account. It has the peculiarity of allowing its holder to withdraw part or all of the money accumulated in the deposit. To make the total or partial withdrawal, it is not necessary to make a prior notice to the financial institution. Since you can make the withdrawal of cash at any time. This being one of the main differences between a demand deposit and a term deposit.
Uses of demand deposit
Demand deposit is usually used for daily operations. Both at a private and business level. Usually in demand deposits, payment and collection operations, receipt charging, cash withdrawals, transfers or ATM operations are carried out.
In addition to the demand deposit you can associate a card, either credit or debit. What speeds up the performance of operations charged to the demand deposit or checking account.
The demand deposit usually has a very low cost for the bank customer. Typically based on a quarterly maintenance fee. In addition, the operations carried out with a charge to the bank deposit usually generate the payment of commissions per operation to the financial institution.
Characteristics of the demand deposit
Demand deposits have a series of characteristics that make them different from other types of bank deposits:
- It allows the immediate withdrawal of money and at any time.
- It is not required to make a prior notice to the financial institution to withdraw the deposit.
- Reduced commissions. Associated with the zero risk that the deposit represents for the financial institution.
- Maintenance and operational fees.
- Ease of use and few requirements for the approval of the opening of the sight deposit.
- Possibility of associating the demand deposit, Credit cards and debit.