NOW 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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.