What are demand deposit accounts?

Demand deposit accounts (DDAs) are bank accounts that allow customers to deposit and withdraw funds on demand without any advance notice. Common examples include checking accounts, where funds can be accessed via checks, debit cards, or electronic transfers. These accounts typically offer low or no interest but provide high liquidity, making them ideal for everyday transactions. Additionally, DDAs are usually insured by government agencies, such as the FDIC in the United States, up to a certain limit.