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Funds can't be withdrawn from a term deposit account until the end of that term without incurring a financial penalty, and withdrawals often require written notice in advance. While the funds in those type of accounts may be invested in highly liquid assets , the account holder still must notify the institution that they wish to withdraw money. Likewise, banks typically charge fees when the balance of the account falls below certain thresholds. As transactions move faster and across more channels, traditional fraud prevention methods struggle to keep up. How Demand Deposits Work.
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