A demand deposit account is a type of bank account that allows you to withdraw your money at any time without needing to give prior notice or paying a penalty. These are often called current accounts.

Key features include:

• Immediate access: You can access your money instantly using ATMs, cheques, or bank transfers.
• Low interest: These accounts usually pay very little or no interest.
• Medium of exchange: Because the money is available immediately, these funds are considered part of the narrow money supply (M1), meaning they are used for everyday spending and transactions.