AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- NOW stands for Negotiable Order of Withdrawal, a type of interest-bearing checking account.
- It allows account holders to write checks while earning interest on their balances.
- NOW accounts combine features of checking and savings accounts for greater flexibility.
A Negotiable Order of Withdrawal (NOW) account is a financial product offered by banks that functions as an interest-bearing checking account. Unlike traditional checking accounts, which typically do not pay interest, NOW accounts enable depositors to earn interest on their funds while maintaining the ability to write checks against the balance. This unique combination of features provides account holders with greater liquidity and earning potential.
Introduced to offer a middle ground between savings and checking accounts, NOW accounts allow consumers and businesses to access their money conveniently for daily transactions without sacrificing the opportunity to accumulate interest. The negotiable aspect means that the checks written from these accounts are transferable and can be used for various payments, making them highly versatile.
Because of regulatory distinctions, NOW accounts may be subject to certain limitations, such as minimum balance requirements or restrictions on the number of transactions per month. However, they remain a popular choice for individuals and organizations looking for a flexible banking option that balances ease of access with interest earnings.
Conclusion
Negotiable Order of Withdrawal accounts offer a practical solution for those seeking both transactional convenience and interest income. By blending the features of checking and savings accounts, NOW accounts provide a flexible financial tool that meets the needs of many banking customers.
