Banks offer diverse account types. Why? They normally get different types of customers and want to ensure each customer’s needs, account-wise, are met.
While most customers prefer a savings account, some prefer opening a DDA or checking account.
The different bank account types boast varied features. And it’s important to understand what each of these accounts stands for or can do.
Now, this takes us to the question.
What does DDA deposit stand for in my online banking?
The full meaning of DDA is a demand deposit account. And it is a checking account.
The DDA account is an account that gives bank customers easy and quick access to their money. You can deposit or withdraw funds on demand.
In other words, you don’t have to queue up in the bank and waste precious time. You can deposit or withdraw money from your account via mobile phone or laptop anywhere, including from the comfort of your home.
Now, what does a DDA deposit mean? It refers to a checking account where you can deposit money without visiting the bank. An internet-enabled device and an internet connection are all you need for such transactions.
The interesting thing about a DDA deposit is this. As soon as you deposit funds into a DDA account, the bank immediately makes your money available for withdrawal.
However, keep in mind that a Certificate of Deposit or savings account is not the same as a DDA account. Banks place restrictions on withdrawals on a savings account.
Continue reading for more details on the DDA account.
What Does DDA Withdrawal Stand For In My Online Banking?
You already know what a DDA account means. Now, what does DDA withdrawal imply?
The DDA withdrawal is a checking account where you can withdraw your money instantly without visiting the bank.
One advantage of DDA withdrawal or withdrawing money from a DDA account is this. You can withdraw your funds without limitations or restrictions.
How To Withdraw Money From A DDA Account
You can withdraw money from your DDA account in diverse ways. Check them out below.
#1: Using mobile application:
The use of mobile apps makes online banking a breeze. Online banks invest heavily in their mobile apps to make them highly responsive, fast, and easy to operate.
You can withdraw money from your DDA account via a mobile app. Just download and install the application on your Android or iOS device.
An internet-enabled device and internet connection are all you require to operate a mobile app. And you can access and use the app anywhere.
With the mobile app, you can withdraw cash from your DDA account, transfer money from your other bank accounts, check your account balance, and pay bills, including loans.
#2: Online banking:
This process involves visiting the bank’s official website and logging into your account. It is safe, quick, and lets you perform various transactions with your bank account.
You can transfer money from your DDA account, withdraw, pay bills, purchase goods, services, etc.
A Handy Tip: Keep your login details safe. Please do not share it with anyone.
If your bank offers the option to use two-way authentication, please use it. Why? It guarantees better security.
#3: Using an automatic teller machine (ATM):
ATM offers you digital banking options. You don’t need to enter your bank to initiate transactions if there’s an ATM nearby.
However, keep in mind that ATMs might sometimes be crowded. So, you might spend some time in a queue or have to drive long distances to access an ATM.
#4: Bank transaction via teller:
Most individuals still prefer visiting their banks for withdrawals and other transactions, even though other options exist.
With a bank teller, your bank will give you the amount you transformed from your demand deposit account.
Requirements For A DDA Account
A demand deposit account is open to everyone. But keep in mind that its requirements are different from a savings account.
Here are the requirements of a DDA account.
- A DDA account doesn’t have eligibility criteria. You can open a DDA account once you’re of legal age.
- Transfers and withdrawals have no limitations or restrictions. You can withdraw funds deposited into your account instantly.
- There is no lock-in time or specific expiration time. You can gain access to funds in your account anytime.
How To Open A DDA Account
DDA and checking accounts are similar. Opening a DDA account is simple too.
Just make your personal information available to the bank. And remember, you have to make an initial deposit.
Please pay attention to the following when opening a DDA account.
#1: Monthly maintenance fee:
Most banks don’t charge monthly maintenance fees, but some do. Using a bank with no maintenance fees is a good way to avoid charges.
Examples of banks that don’t charge monthly maintenance fees are as follows.
- TIAA bank
- NBKC bank
- Axos bank
- Discover, etc.
#2: Overdraft fees:
Does your bank charge overdraft fees? Well, most banks don’t. Examples include the following.
- Ally Interest Checking Account
- Capital One 360 Checking
- Axos Bank reward checking
- Discover Cashback debit account
- Betterment checking
- Wealthfront cash account, etc.
#3: Minimum balance requirement
What bank offers the best minimum balance requirement? You can check this before opening your DDA account. Again, these banks don’t require a minimum balance.
- ONE
- Chime
- Axos Bank
- Ally Bank
- Capital One
- Discover
- FNBO Direct
#4: Access to ATMs and branches:
Does the bank have a physical location and ATM branches? Most individuals might prefer banks that have physical locations.
#5: Security features:
What security feature does the bank offer to protect your account and guarantee the safety of your funds?
#6: Mobile and online banking features:
The bank’s mobile and online banking features are also crucial. They’ll help you decide if the bank is ideal for you.
A Handy Tip: Note that the following aren’t considered DDA accounts by credit unions or banks. These include NOW accounts, deposit accounts, money market accounts, and accounts tied to credit.
Can You Open A DDA Joint Account?
Yes, banks allow customers to operate DDA joint accounts. Owners of the account also have equal access to the account.
In other words, both parties can make deposits and withdrawals from the joint account without notifying each other.
Both can sign checks or initiate ATM withdrawals without notifying the other. However, customers interested in opening a DDA joint account must provide signature cards to the bank when opening the account.
A Handy Tip: The only risk with running a joint DDA account is this. The bank only requires the signature of the account holders to close the joint account.
So, please, only consider opening a joint DDA account with someone you trust completely.
What Does DDA Credit Mean?
There are times when an account may have a negative balance or tons of overdraft transactions.
That’s what you call a DDA credit. But be careful; the bank could shut down your account. Many banks shut down DDA accounts whose negative balances have remained unpaid within 30 days.
Conclusion
What does DDA deposit stand for in my online banking? DDA means demand deposit account. In the DDA deposit, money deposited into the account is made available for withdrawal instantly.
DDA accounts don’t have limitations or restrictions. They are different from NOW accounts, savings accounts, money market accounts, and deposit accounts.
Additionally, consider the features of each bank before opening a DDA account. Keep in mind that some banks don’t request monthly maintenance fees, overdrafts, and minimum balance. Check out the examples we shared to make your decision.
