If you have cross-checked your bank statement and found DDA, you may wonder for a while. Basically, “DDA Debit” stands for Direct Debit Authority. In simple terms, if you have borrowed money from a bank, you can instruct the bank to recover the debt in periodic installments where you maintain your own account.
Not to mention, in case you want to know some of the attributes, validity period, frequency, recovery date, and amount are a few of them. Correspondingly, DDA recovery instruction is normally sent on the recovery date and it is sent through Central Bank to the source bank.
Most of us always cross-check our bank statements. Likewise, our main objective is to check financial activities in our bank account. In like manner, finding the answer of a certain clarification is easy if you do check your bank statement on a regular basis. To know more about it, go through the following article. Most of the terms related to this topic are complex and we have broken the terms down to understand them better. Furthermore, you also have to know which steps are necessary to take after noticing them in your bank statement.
What is the DDA bank account?
There is confusion about what does DDA stand for in banking? When we talk about the DDA Bank account it is a bit different from DDA debit. Here, DDA is all about the Demand deposit account. Not to mention, only those customers who make frequent deposits and withdrawals, only get such accounts from the bank.
Although some financial institutions check the definition of a DDA account, the main principle is the same for both accounts. In addition, some banks also offer the lowest interest rates possible to attract customers. However, DDA provides no interest as customers do not keep the money in that type of account for long. Correspondingly, it is meant to be an active transactional account that is more dynamic to track most activities such as credit as well as DDA debit withdrawal.
What does the DDA Debit mean?
DDA debit or direct debit authority is one of the most useful forms of banking. Likewise, as per the data, almost all retail banking is carried on through DDA accounts. As far as DDA debit refers, with such procedure you can withdraw funds from purchase, payment, or transfer from your account. Additionally, a DDA account provides you enough liberty which helps you to make frequent debits and credits. Comparatively, it is helpful to make payments for utility or insurance.
What steps do you need to take?
Do not be afraid if you see DDA debit in your bank statement. As it is a common sight, whenever you notice, find some few following steps which might be helpful.
Check Your Cheque book
First of all, take your checkbook and review the issued cheques for the last few months. Likewise, if there is not any relevant entry, then go for the next step.
ATM History
The second step refers to ATM debit card history, from which you can consolidate the DDA payment transactions.
Online Banking
It seems many times when a retail bank customer uses online payment methods for purchasing or for paying bills. In like manner, review your all past online transactions of a few months.
Different ways of DDA debit withdrawals
Before a few years ago, the DDA transaction options were limited, but today, the customer has several options to access their funds in a DDA account.
Cheque
However, cheque writing is also one of the oldest withdrawal options, but many of the customers still write cheques for cash withdrawal, purchase, or bill payments.
Teller Window
You can also withdraw your DDA account funds by walking into a bank and filling out a withdrawal form. In addition, if you want face-to-face contact with your banker, then the teller window withdrawal option is the right idea.
Automatic Teller Machine
The days are gone when it was necessary to walk into your bank for cash withdrawals. Furthermore, the ATM offers 24 X 7 withdrawals from anywhere. In addition, banks issue ATM debit cards to the DDA account holders, which they can use to check their DDA balance and withdraw funds. However, it is not essential to walk into the same bank’s ATM to access your DDA account funds. Furthermore, you can collect your DDA debit memo through the ATM.
Online banking
The era of online banking is specially invented for people who do not want to leave their homes’ comfort for any banking transaction. Uniquely, simply enter your username and password to access your DDA bank account, and enjoy the services for any purchase or online bill payments.
Mobile App
Mobile banking apps are also new methods to access your DDA bank account for paying bills or purchasing something.
What is dda debit check charge?
If you have an account with a check facility, your bank may charge some money. Additionally, DDA debit check charge may happen for various reasons such as for certain transactions or even if you do not keep enough balance. Furthermore, some other fees like Overdraft, ATM, and monthly service can also be included. However, some free accounts do not charge any maintenance fee.
What if your DDA deposit is showing pending?
In case if you see “direct deposit pending” do not need to be scared. Correspondingly, it means that your deposit is waiting. Normally, in such cases, the bank is checking your deposit. In certain cases, banks verify some transactions. Of course, only after the verification phase, your funds will be reflected in your bank account. In the light of some cases, banks can hold transactions for up to seven days.
Final thoughts:
DDA accounts provide customers an easy and safest way to make deposits and withdrawals anytime when they require. Moreover, I hope you have understood the DDA debit terms and steps to take when you notice it in your bank statement. Correspondingly, in case you are wondering “why did I get a DDA debit”, and don’t know about various terms related to it, just go through this article.
