What type of deposit can be withdrawn at any time?

A demand deposit is a type of account that allows the account holder to withdraw their money at any time without any advance notice. This characteristic provides flexibility and convenience, making it ideal for regular transactions, such as those in checking accounts. Demand deposits do not typically earn high interest rates compared to other types of deposits, such as time or fixed deposits, which require the funds to be kept in the account for a specified period to earn interest.

The other deposit types mentioned generally do not allow for immediate withdrawals without penalties or restrictions. Time deposits, for instance, are specifically designed to be held for a set period, and withdrawing them early often incurs penalties. Fixed deposits typically operate similarly, requiring the investor to commit funds for a certain timeframe. Interest-bearing deposits, while they may allow for withdrawals, often come with stipulations or limits that are not present with demand deposits. This makes demand deposits the most accessible option for individuals needing quick and easy access to their funds.