Demand deposit account (DDA)
A demand deposit account (DDA) is a bank account whose funds the holder can withdraw at any time, on demand, without advance notice. It is the standard business checking account: deposits are held at a chartered bank, and the account can send and receive payments on rails like ACH, Fedwire, and wire transfers.
By Nikhil Srinivasan, Founder & CEOLast updated July 2026
The word "demand" is what separates a DDA from time deposits or investment balances — the money is always available, which is why DDAs are where businesses run payroll, collect revenue, and pay suppliers. In the US, DDAs sit at regulated depository institutions, and eligible balances carry FDIC insurance up to the applicable limits.
Platforms that serve business customers often need to give each customer a real account of their own — not a spreadsheet entry inside one pooled account. Infinite issues a unique, fully managed DDA per customer, with onboarding, screening, and reconciliation handled on the network, so platforms get bank-grade account structure without becoming a bank.
Frequently asked questions
Is a DDA the same as a checking account?
In practice, yes — a business checking account is a demand deposit account. The defining feature is on-demand withdrawal: no notice period or maturity date. Most savings and money market accounts work the same way today, while time deposits like CDs do not.
Are DDA balances FDIC-insured?
DDAs sit at regulated depository institutions, and eligible balances carry FDIC insurance up to the applicable limits. When a platform holds accounts for customers, coverage depends on the FDIC’s pass-through conditions. Pass-through deposit insurance
Can a platform open a DDA for each customer?
Yes. Infinite issues a unique, fully managed DDA per customer through chartered, FDIC-insured partner banks — with onboarding, screening, and reconciliation handled on the network. Managed Account
See how it works on the network.
Book a 30-minute demo and see how Infinite moves money — instant, compliant, and global.