<P> Demand deposits, bank money or scriptural money are funds held in demand deposit accounts in commercial banks . These account balances are usually considered money and form the greater part of the narrowly defined money supply of a country . Simply put, these would be funds like those held in a checking account . </P> <P> In the United States, demand deposits arose following the 1865 tax of 10% on the issuance of state bank notes; see history of banking in the USA . </P> <P> In the U.S., demand deposits only refer to funds held in checking accounts (or cheque offering accounts) other than NOW accounts; however, in a 1970s and 1980s response to the 1933 promulgation of Regulation Q in the U.S., demand deposits in some cases came to allow easier access to funds from other types of accounts (e.g. savings accounts and money market accounts). For the historical basis of the distinction between demand deposits and NOW accounts in the U.S., see Negotiable order of withdrawal account #History . </P> <P> Demand deposits are usually considered part of the narrowly defined money supply, as they can be used, via checks and drafts, as a means of payment for goods and services and to settle debts . The money supply of a country is usually held to consist of currency plus demand deposits . In most countries, demand deposits account for a majority of the money supply . </P>

Is a savings account considered a demand deposit account