What is a Demand Deposit?

A demand deposit is money you keep in a bank or financial account that you can withdraw at any time without notice or penalties.

This usually includes chequing accounts and many everyday spending or savings accounts—the money is there “on demand” for bills, purchases, and transfers.

How KOHO Fits In

When you use KOHO for day-to-day spending and saving:

• Your balance is available when you need it through the app and card

• You can move money in and out, pay for purchases, or transfer funds without locking it in

And if you use KOHO High Interest Savings, you can:

• Earn a high interest rate on the money you’re setting aside

• Still keep it flexible and accessible, rather than tied up in a long-term product

How a Demand Deposit Works

With a demand deposit account, you can typically:

• Deposit money through payroll, transfers, or e-Transfers®

• Withdraw or spend it at any time (ATM, card purchases, bill payments)

• Transfer funds between accounts instantly or within a short period

There’s no set term or maturity date—your money isn’t “locked in.”

Demand Deposit vs. GIC or Term Deposit

A demand deposit is different from a GIC or term deposit:

• Demand deposit:

  • Access your money any time

  • Great for everyday banking, emergencies, and short-term needs

• GIC/term deposit:

  • Money is locked in for a set term

  • Often a higher guaranteed rate, but less flexibility

In simple terms: demand deposits are about access, while term products are about locking in for a set return.

Where You See Demand Deposits in Everyday Life

Common examples of demand deposit accounts include:

• Chequing accounts

• Many everyday savings accounts

• Spending accounts that let you pay bills, tap, and transfer on demand

If you can use the money whenever you want, without waiting for a term to end, it’s likely a form of demand deposit.