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What is the difference between Demand Deposit and Demand Draft?

 

Definition of 'Demand Draft'

A method used by individuals to make transfer payments from one bank account to another. Demand drafts are marketed as a relatively secure method for cashing checks. The major difference between demand drafts and normal checks is that demand drafts do not require a signature in order to be cashed.
 

Definition of 'Demand Deposit'

Funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution. Demand deposits can be "demanded" by an account holder at any time. Many checking and savings accounts today are demand deposits and are accessible by the account holder through a variety of banking options, including teller, ATM and online banking. In contrast, a term deposit is a type of account which cannot be accessed for a predetermined period (typically the loan's term).

 
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A method used by individuals to make transfer payments from one bank account to another. Demand drafts are marketed as a relatively secure method for cashing checks. The major difference between demand drafts and normal checks is that demand drafts do not require a signature in order to be cashed.this is called demand draft.

Demand deposits, bank money or scriptural money are funds held in demand deposit accounts in commercial banks.These account balances are usually considered money and form the greater part of the narrowly defined money supply of a country

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method used by individuals to make transfer payments from one bank account to another. Demand drafts are marketed as a relatively secure method for cashing checks. The major difference between demand drafts and normal checks is that demand drafts do not require a signature in order to be cashed.this is called demand draft. Demand deposits, bank money or scriptural money are funds held in demand deposit accounts in commercial banks.These account balances are usually considered money and form the greater part of the narrowly defined money supply of a country
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  1. A demand deposit is money that you deposit into a bank account from which you can withdraw on demand, at any time without any advance notice to the bank. 
  2. A demand draft is a financial draft payable on demand.
  3. The drawer is the person requesting the demand draft; the bank paying the money is the drawee; and the party receiving the money is the payee.
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A term deposit also is known as a time deposit is time-bound i.e. one has to block the money for some time ranging from a few months up to years. 

The depositor gets interested in the deposited amount which is higher if the blocking period is higher. 

Demand Draft, on the other hand, is easy to access but has lower interest rates.

 
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yhhyhy
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Demand deposits                          
1. It either does not give any or gives very                    
2. It provides an overdraft facility.                                       
3. Money can be withdrawn at any time.                         

Time deposits
1. It gives very high interest to the depositors. low interest to the depositors.
2. It does not provide an overdraft facility.
3. Money can be withdrawn only after a certain period.

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