Having a discussion about the meaning of DDA I am saying DDA can be checking or savings I am also hearing DDA can only be checking can somebody weigh in?

(b)(1) Demand deposit means a deposit that is payable on demand, or a deposit issued with an original maturity or required notice period of less than seven days, or a deposit representing funds for which the depository institution does not reserve the right to require at least seven days' written notice of an intended withdrawal. Demand deposits may be in the form of:

(i) Checking accounts;

(ii) Certified, cashier's, teller's, and officer's checks (including such checks issued in payment of dividends);

(iii) Traveler's checks and money orders that are primary obligations of the issuing institution;

(iv) Checks or drafts drawn by, or on behalf of, a non-United States office of a depository institution on an account maintained at any of the institution's United States offices;

(v) Letters of credit sold for cash or its equivalent;

(vi) Withheld taxes, withheld insurance and other withheld funds;

(vii) Time deposits that have matured or time deposits upon which the contractually required notice of withdrawal as given and the notice period has expired and which have not been renewed (either by action of the depositor or automatically under the terms of the deposit agreement); and

(viii) An obligation to pay, on demand or within six days, a check (or other instrument, device, or arrangement for the transfer of funds) drawn on the depository institution, where the account of the institution's customer already has been debited.

(2) The term demand deposit also means deposits or accounts on which the depository institution has reserved the right to require at least seven days' written notice prior to withdrawal or transfer of any funds in the account and from which the depositor is authorized to make withdrawals or transfers in excess of the withdrawal or transfer limitations specified in paragraph (d)(2) of this section for such an account and the account is not a NOW account, or an ATS account or other account that meets the criteria specified in either paragraph (b)(3)(ii) or (iii) of this section.

(3) Demand deposit does not include:

(i) Any account that is a time deposit or a savings deposit under this part;

(ii) Any deposit or account on which the depository institution has reserved the right to require at least seven days' written notice prior to withdrawal or transfer of any funds in the account and either--

(A) Is subject to check, draft, negotiable order of withdrawal, share draft, or similar item, such as an account authorized by 12 U.S.C. 1832(a) (NOW account) and a savings deposit described in Sec. 204.2(d)(2), provided that the depositor is eligible to hold a NOW account; or

(B) From which the depositor is authorized to make transfers by preauthorized transfer or telephonic (including data transmission) agreement, order or instruction to another account or to a third party, provided that the depositor is eligible to hold a NOW account;

(iii) Any deposit or account on which the depository institution has reserved the right to require at least seven days' written notice prior to withdrawal or transfer of any funds in the account and from which withdrawals may be made automatically through payment to the depository institution itself or through transfer of credit to a demand deposit or other account in order to cover checks or drafts drawn upon the institution or to maintain a specified balance in, or to make periodic transfers to such other account, such as accounts authorized by 12 U.S.C. 371a (automatic transfer account or ATS account), provided that the depositor is eligible to hold an ATS account; or

(iv) IBF time deposits meeting the requirements of Sec. 204.8(a)(2).

So reading through this it looks as if a regular savings account not a time deposit account would be a demand deposit account. A savings account where a withdrawal is available upon demand. Am I reading this right?

Most savings accounts are not truly available on demand. Banks treat them that way, but if you read the account agreement, most include the right for the bank to require 7 days written notice before a withdrawal. That keeps them classified as savings deposits and not demand deposits.

When would a regular savings account not be available on demand? Not following. If I go into a bank and want to do a savings withdrawal I don't see restriction.

Read the terms and conditions.

My credit union restricts in-person cash withdrawals to $1,500 at the teller line. You can get more than $1,500 with advanced notice. With the language in the account agreement, any FI could do the same.

This issue goes back to when there were reserve requirements for demand deposits and not for savings accounts. In the mid 70's, some thrifts came up with a negotiable order of withdrawal to muddy the waters. The rest is history.

Like others, read the terms and conditions, and where it is carried on the consolidated report of condition (call report)

As others stated read the agreement. I don't recall ever seeing a savings account agreement without a 7 day notice clause in it.

When would a regular savings account not be available on demand?

You have $150,000 in your savings account. You see a new truck you want to pay cash for and you want to withdraw $75,000 from your savings. The bank most likely will exercise the advance notice clause so they can arrange to have the cash on hand at the particular branch where you are wanting to make the withdrawal.

Prior to the repeal of Regulation Q in 2011, the payment of interest on a demand deposit account was prohibited. So, if the account was paying interest, it was not a demand deposit account and required a 7-day notice of withdrawal. The enforcement of the notice never really happens, but it could be enforced at any time.

Also, until 2020, the FRB required institutions to maintain reserves on transaction accounts but not on savings deposits. So the difference in classification might affect how much an institution had to maintain as cash and low-earning reserve deposits with the FRB or a correspondent.

Requiring advance notice goes for checking or savings accounts. Branches don't keep excessive money. They keep enough to meet normal forecasted demand. So saying a savings is a DDA makes sense to me. Checking or savings I can make a withdrawal on demand unlike a time deposit account. How much one is able to withdraw applies to both checking and savings.

If your standard is whatever makes sense to you then sure. A savings is a DDA. A certificate is a blue whale. Your bank is a casino. If your standard is Reg. D, that's a different story. If your standard is an economic standard (i.e. what is M1, M2, etc.) then you have to look at the prevailing economic standards. On this site, people have been addressing the Reg. D standards.

No, a savings is not a DDA. The Reg D definition of a "demand deposit" is that I can walk into the bank at any time and "demand" the entire balance in my account and the bank has to honor the request. This has nothing to do with whether the bank has the cash on hand or not as the bank can hand me a cashier's check or wire the money to an account at another bank.

On the other hand, a savings account, the terms and conditions as required by Reg D allow the bank to reserve the right to require seven days advance notice before honoring my withdrawal request. Based on the current capital requirements and monetary policy, I don't know of any banks invoking this right, but the right is still reserved. If the bank can refuse a demand for a withdrawal using that term, the account is not a demand deposit account.

The reason we're addressing the Reg D standards is that is how the bank will need to report accounts on their call report.