What is the primary feature of demand deposits?

The primary feature of demand deposits is that they require no notice for withdrawal. This means that account holders can access their funds at any time without having to notify the bank or wait a predetermined period. This characteristic is fundamental to the nature of demand deposits, as they provide liquidity and immediate access to funds, allowing individuals and businesses to meet their financial obligations without delay.

Demand deposits typically include checking accounts and other similar accounts where money can be deposited or withdrawn freely. Because of their convenient access, demand deposits are essential for everyday transactions, enabling users to write checks, use debit cards, or make electronic payments easily.

While other features like interest rates, access limitations, and fees may apply to various types of accounts, they do not define the essence of what makes a demand deposit unique. The hallmark of these accounts is the immediacy and flexibility they offer to users.