What is a Demand Deposit Account commonly referred to as?

A Demand Deposit Account is commonly referred to as a checking account because it is specifically designed for frequent transactions and easy access to funds. Consumers use checking accounts to deposit money and withdraw it as needed, typically through checks or debit cards. This type of account allows for unlimited deposits and withdrawals, making it suitable for day-to-day expenses and transactions.

In contrast, other options, such as savings accounts, are intended for longer-term savings with limited transactions, and certificates of deposit require funds to be locked in for a set period in exchange for a higher interest rate. A money market account, while providing some checking features, generally offers a higher interest rate but may impose restrictions on the number of transactions allowed compared to checking accounts. Hence, the most accurate term for a Demand Deposit Account is a checking account.