Negotiable order of withdrawal account – An interest-earning bank account with which the customer is permitted to write drafts against money held on deposit. It is also known as a “NOW account”.

Structured to comply with regulations, which prohibits interest on checking accounts; NOW accounts are interest bearing and checks maybe written on them.

Typically commercial banks, mutual-savings banks and savings-and-loan associations can offer this type of account to individuals, some nonprofit organizations and certain governmental units.

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Related ChexSystems Banking Information:

1. Bank
2. Money Market Deposit Account
3. Lifeline Account
4. How to get a Bank Account that is Just Right for You
5. Minimum Payment

Tagged as: Interest-Earning Bank Account, Negotiable order of withdrawal account, NOW Account