Which type of account typically allows for the withdrawal of funds at any time?

A demand deposit account is designed specifically for immediate access to funds, allowing account holders to withdraw money at any time without any notice or penalty. This type of account includes checking accounts, which are commonly used for everyday transactions such as paying bills, making purchases, or withdrawing cash from ATMs. The key characteristic of a demand deposit is its liquidity, meaning that funds are readily available when needed.

In contrast, term deposits and time deposits require the funds to be locked in for a specific period, and withdrawing money before this period typically incurs penalties. Savings accounts, while they do allow withdrawals, may have restrictions on the number of transactions per month or require prior notice for larger withdrawals, making them less flexible than demand deposits.