DDA is an abbreviation of Demand Deposit Account. This is a function from a bank account that you can withdraw an amount that you already transferred. This account offers by banks or credit unions. In America, DDA means Direct Debit Authorization. This is also known as DDA Purchase or DDA Pur. In this case, DDA means that you need to approve the transaction that you have purchased. In other words, DDA is a pending payment of your purchase that you need to be approved.
There are some benefits to using this service. First, there is no restriction or limitation of an amount that you want to withdraw or amount that you have on your balance account. Based on People of our everyday life, a website about everyday issues like culture and religion, there is no law that regulates a minimum amount of the balance from the accountholder for DDA so far. However, the financial institutions regulate a minimum amount of the balance for DDA account’s holder. If the amount less than the minimum amount, the bank will charge a fee for this.
There are few accesses to use DDA. You can use it with a check, debit card, and electronic method. That is why this method is quite flexible based on which medium is suitable for your need. The financial institutions offer an online banking service. Thus, the DDA accountholder has access to their account 24 hours a day. Although without an online banking service, this withdrawal could be conducted whenever you want to. In other words, you can withdraw your money with this account on a demand basis. There is no limitation of the frequency of withdrawal that you want to conduct. The financial institutions charge no fee regarding the frequency and amount of withdrawal. In this regard, DDA account is also flexible in terms of time and frequency.
Like any other services from financial institutions, DDA account requires obligations from their holder. Some financial institutions require an interest if you use this service. However, the interest that you should pay is usually low in compare to deposit or other financial services.
It is possible to have a joint account for DDA. It needs the signature of both parties to open this account. Moreover, it needs one party only to close the account. It is also need one party only to withdraw the money. One party does not need the permission from another party to withdraw money. It is, hence, recommended to open a joint account with a reliable person and someone you trust.
Financial institutions provide many services. Although the services from the financial institutions are not tailor made, you can use the services based on your need. DDA is not an automatic service for a bank account. It is, therefore, important to have a consultation first with your bank about what kind of bank service that you need. With the flexibility of amount, frequency, medium, and time that DDA account offers, DDA account is one of a best option of a service from financial institutions.
