NOW account


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Related to NOW account: Money market deposit account, Asset management account, Super NOW Account, ATS Account

Negotiable Order of Withdrawal Account

A checking account at a bank or thrift that earns interest. The account holder is allowed to write checks or drafts against the money in the account and may withdraw any amount of money from it on demand. See also: M1.

NOW account

An interest-bearing account on which checks may be written. Authorized on a national scale in 1981, these accounts pay a relatively small return. Therefore, the balances in NOW accounts should be kept at the minimum necessary to provide needed funds without incurring service charges. Also called negotiable order of withdrawal. See also super NOW account.