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Demand deposit account

Demand deposit accounts, or DDAs are checking or savings accounts that a bank is required to return the entire balance to the owner of the account on demand during normal business hours.

Expanded Definition

Investment accounts and certificates of deposit (CDs) are not considered DDAs because the bank is not obligated to return your money on demand, instead you must follow the bank's rules and you will receive your money back at the contracted time, sometimes with penalties for early withdrawal.

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