Checkable Deposits
Checkable deposits, also known as demand deposits, are funds held in a bank account that can be accessed by writing a check or using a debit card. These deposits are considered to be the most liquid form of money, as they can be quickly converted into cash. Checkable deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor.
Checkable deposits have been around since the early days of banking. The first checkable deposits were created in the late 1700s in England, when banks began to issue paper checks as a way to transfer money from one account to another. This allowed customers to access their funds without having to physically go to the bank. In the United States, checkable deposits were first introduced in the early 1800s.
Comparison Table
| Type of Deposit | Liquidity | Interest Rate |
|---|---|---|
| Checkable Deposits | High | Low |
| Savings Accounts | Medium | Medium |
| Certificates of Deposit | Low | High |
Checkable deposits are the most liquid form of money, as they can be quickly converted into cash. However, they typically offer lower interest rates than other types of deposits, such as savings accounts and certificates of deposit.
Summary
Checkable deposits, also known as demand deposits, are funds held in a bank account that can be accessed by writing a check or using a debit card. These deposits are considered to be the most liquid form of money, as they can be quickly converted into cash. Checkable deposits have been around since the early days of banking and are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor. For more information about checkable deposits, you can visit the FDIC website or your local bank.
See Also
- Savings Accounts
- Certificates of Deposit
- Federal Deposit Insurance Corporation (FDIC)
- Money Market Accounts
- Interest Rates
- Debit Cards
- Checks
- Liquidity
- Banking
- Cash
