What is a Current Account / Demand Deposit?
A «Current Account» (British English) or «Demand Deposit» (American English) is a transactional bank account that provides instant, unrestricted access to funds. Unlike savings or time deposits, no notice period is required to withdraw funds.
Key features
- Unlimited transactions: No cap on number of deposits or withdrawals
- Near-zero interest: Liquidity premium means very low or no interest paid
- Overdraft facility: Banks may extend a short-term credit line against the account
- Linked payment tools: Debit cards, cheque books, online banking, SWIFT transfers
Difference: Current Account vs Savings Account
- Current Account: For transactions, no interest, unlimited access
- Savings Account (Demand): Limited transactions, slightly higher interest
- Time Deposit: Fixed term, higher interest, withdrawal penalty
Related terms
- Overdraft (Thấu chi)
- Minimum Balance (Số dư tối thiểu)
- Standing Order (Lệnh chi định kỳ)
- Direct Debit (Ghi nợ trực tiếp)
- CASA Ratio (Current Account Savings Account — tỷ lệ tiền gửi không kỳ hạn)
Usage example
«The company maintained a current account with a VND 500 million average balance to qualify for the bank's preferred corporate lending rate.»
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