Demand deposit and term deposit are two different types of deposit accounts either in the bank or any financial institution.
Let’s find out the definition of Demand deposit …
Demand Deposit: In demand deposit accounts there no predetermined time fixed to withdraw money from bank or depository institute. Demand deposit account is a current account. A user can withdraw money or pre-deposited fund when he or she wishes to without paying any fee or penalty to bank or depository institution.
Demand deposit account is easier to access than term deposit account also provides less interest than term deposits. Even if savings accounts has lower interest rate than term deposit accounts.