Demand vs Time Deposits

PPB Banker-Customer Relationship Free JAIIB Capsule 59 views Updated 23 Sep 2026

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PPB · Banker-Customer Relationship

What is the fundamental difference between Demand Deposits and Time Deposits in banking?

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Demand deposits are payable on demand (low/no interest), Time deposits are repaid after a fixed expiry period (higher interest).

Current and Savings accounts are demand deposits. FDs, RDs, and Short-term deposits are time deposits.

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Demand vs Time Deposits — Full Text

What is the fundamental difference between Demand Deposits and Time Deposits in banking?

Answer

Demand deposits are payable on demand (low/no interest), Time deposits are repaid after a fixed expiry period (higher interest).

Additional notes

Current and Savings accounts are demand deposits. FDs, RDs, and Short-term deposits are time deposits.

Part of Principles & Practices of Banking · Banker-Customer Relationship · Last updated 23 Sep 2026

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