What Is a DDA Bank Account?
The primary products offered by banks are checking and savings accounts. These products are also called demand deposit accounts, (DDA). A demand deposit account is simply a bank account where you can store or deposit your money. Your funds can be acquired on demand by simply going to your bank and request to make a withdrawal. Other avenues for obtaining your funds include going to an ATM.
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Identification
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To open a checking account or savings account you will need identification such as a driver's license, state identification, military ID or a passport.
Deposit
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Demand deposits will require a minimum deposit to open the account, such as $50 or $100. This requirement will vary from bank to bank.
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ATM/debit card
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Checking account holders can be issued an ATM or debit card. Savings account holders are normally issued an ATM card only.
Minimum balance
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If you go below your minimum balance, you may incur a fee. The fee is accessed for every billing cycle in which you fall below your balance.
Joint owners
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Demand deposit accounts can have two account owners. Either owner will have access to the account without the consent of the other. It only takes one of the account holders to close the account.
Interest
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Demand deposit accounts may pay interest on your outstanding balance. Some banks will require you to maintain a minimum balance before interest is paid on your account.
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