Demand savings is the capital of a natural or legal person whose availability is immediate and free by its owner.
In general terms, demand savings are those resources deposited in any bank account or location that is not subject to requirements, limits and restrictions of any kind, such as, for example, a personal checking account. In contrast, there are other types of savings that are not at sight, for example, any type of deposit through which we rent an interest in exchange for temporarily lending it to an entity without it being immediately available, or, in the If this possibility exists, count on penalties such as commission expenses as well as a reduction in interest.
Demand savings are usually represented in a checking account with which they operate in the usual transactions such as payroll income, payment of receipts, withdrawals at ATMs and the like, thus distinguishing itself from any other financial product that requires limitation, whether temporary or monetary, of the movement of capital itself.
Characteristics of savings at sight
The main characteristics of demand savings are:
- Absolute liquidity. Demand savings is not subject to any impediment in your transactions, it is immediately available.
- Possibility of associating credit and debit cards for purchases.
- They usually have management and maintenance fees.
- Possibility of direct debit payment of receipts and payroll.
- Little or no profitability. The theory of profitability is associated with interest and liquidity, so high liquidity goes hand in hand with low interest.
- Possibility of being associated with one or more natural or legal persons.
- Possibility of associating it with other types of savings accounts and financial products, in such a way that resources are transferred from the sight account to another deposit, investment or savings account on deposit.