What Does a DDA Number Mean?

A checking account, also called a “demand deposit account,” has a number called a “DDA number.” Both a checking account and a DDA are the same type of financial tool.

At the bottom of a check from a bank, there are two number codes. The 9-digit number on the left is called the American Banker’s Association number or the bank routing number. It is used to find out which bank the account is at. The DDA, or checking account number, is to the right of it. This number is unique to each account.

Most consumer bank accounts or DDAs let the owner take money out whenever they want, but in some cases, they may need to wait a few days.

A different kind is a NOW account. A negotiable order of withdrawal account is what the letters stand for. This works the same way as a bank or credit union checking account, but a NOW account also pays interest on the balance. In this case, the bank has the right to ask for 7 days’ notice before any funds are taken out. But in real life, this is rarely done.

Some other types of accounts, like money market funds and loan accounts, also let you write checks, but DDAs and NOW accounts are the ones most people choose for everyday use.

Misha Khatri
Misha Khatri is an emeritus professor in the University of Notre Dame's Department of Chemistry and Biochemistry. He graduated from Northern Illinois University with a BSc in Chemistry and Mathematics and a PhD in Physical Analytical Chemistry from the University of Utah.


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