Negotiable-Order-of-Withdrawal Account

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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.

Negotiable-order-of-withdrawal account. A negotiable-order-of-withdrawal (NOW) account is an interest-bearing checking account that pays interest on the balance, usually at a rate comparable to a money market account.

You may be required to maintain a fairly substantial minimum balance in a NOW account to avoid high fees or loss of interest, or both.

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