Often referred to as a DDA account, demand deposit bank accounts are one of the most common types of transactional accounts used by individuals in the United States. Chances are that you have one and refer to it as your "checking account."
DDA vs Checking
A checking account is a bank account from which individuals can withdraw funds in several ways. Individuals may write checks that draw from their checking account, use debit cards to make transactions or withdraw money from automated teller machines or set up automatic debits and payments. A DDA is the most common form of checking account. In most cases, money can be withdrawn from demand deposit accounts without giving the bank advance notice, but the Consumer Financial Protection Bureau reports that some banks may require up to six days of advance notice.
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DDA vs NOW
While it is the most common type, a DDA is not the only type of checking account. A NOW, or negotiable order of withdrawal, account can only be owned by individuals and certain types of entities, and the bank may require up to seven days' notice for a withdrawal. In addition, NOW accounts allow owners to earn interest on deposited money.