Checkable deposits are bank accounts upon which checks can be drawn. There are different types of checkable accounts offered by commercial banks or depository thrift institutions (Credit Unions, Mutual Saving Banks, Saving & Loan Associations...). The basic categories of checkable deposits are demand deposits or NOW (interest-bearing checking accounts) and money market deposit accounts (MMDAs). They are payable on demand; that is to say, in case a depositor demands a payment by making a withdrawal of funds, the bank is obliged to pay immediately the amount requested. The depositor is also allowed to transfer the funds directly to a third party and depositors can check all the transactions through monthly statements, that are generally printed and mailed to deposit holders by the bank. Checkable accounts are very liquid assets that allow depositors to have an easy access to their funds. For this reason, checkable deposits generally are an important but also one of the lowest-cost source of bank funds covering a large share of bank liabilities.
Mishkin Frederic S. (2010), Economics of Money, Banking, and Financial Markets, Business School Edition (2nd Edition), Pearson Education Inc.