Demand Deposits
WDDNS • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
5,785.20
Year-over-Year Change
4.86%
Date Range
5/8/2006 - 6/30/2025
Summary
Demand deposits represent the total amount of bank account balances that can be withdrawn immediately without prior notice. This metric is crucial for understanding liquidity, consumer spending potential, and overall economic activity.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
Economists track demand deposits as a key indicator of monetary circulation and financial system health. These deposits reflect the readily available funds in checking accounts and serve as a real-time snapshot of consumer and business financial resources.
Methodology
The Federal Reserve collects this data through comprehensive reporting from financial institutions, aggregating account balances across commercial banks and credit unions.
Historical Context
Policymakers and central bankers use demand deposits as a critical input for monetary policy decisions and economic forecasting.
Key Facts
- Demand deposits are part of the M1 money supply measurement
- These accounts provide immediate access to funds without withdrawal restrictions
- Total demand deposits can indicate economic confidence and spending potential
FAQs
Q: What exactly are demand deposits?
A: Demand deposits are bank account balances that can be withdrawn immediately without advance notice. These typically include checking accounts and other highly liquid financial instruments.
Q: How do demand deposits impact economic analysis?
A: Demand deposits provide insights into potential consumer spending and overall economic liquidity. Economists use these figures to assess financial system health and potential economic momentum.
Q: How often is WDDNS data updated?
A: The Federal Reserve typically updates demand deposit data weekly or monthly, depending on reporting cycles. Precise update frequencies can vary by specific data collection protocols.
Q: Are demand deposits the same as savings accounts?
A: No, demand deposits differ from savings accounts by offering immediate, unrestricted access to funds without withdrawal limitations or advance notice requirements.
Q: What limitations exist in demand deposit measurements?
A: Demand deposit data might not capture all liquid assets and can be influenced by temporary factors like payroll cycles or seasonal economic variations.
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Citation
U.S. Federal Reserve, Demand Deposits [WDDNS], retrieved from FRED.
Last Checked: 8/1/2025