Negotiable Order of Withdrawal accounts

E781033

Negotiable Order of Withdrawal (NOW) accounts are interest-bearing deposit accounts offered by banks and other depository institutions that allow customers to write checks against their balances, functioning much like a hybrid between checking and savings accounts.

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Observed surface forms (1)

Surface form Occurrences
Negotiable Order of Withdrawal account 0

Statements (49)

Predicate Object
instanceOf bank account
interest-bearing deposit account
retail deposit product
allows check-writing
drafts payable to third parties
alsoKnownAs NOW account
Negotiable Order of Withdrawal (NOW) account
balanceType liability of the depository institution
canBeAccessedBy ATMs
mobile banking
online banking
createdTo circumvent interest rate ceilings on demand deposits
denominatedIn U.S. dollars
differsFrom traditional demand deposit account by paying interest
earns interest
firstIntroducedInRegion New England GENERATED
fundsAvailability generally payable on demand
governedBy account agreement between depositor and institution
hasCharacteristic demand-deposit-like access with interest
hybrid between checking and savings accounts
hasFeature checkbook access
debit card access (often)
direct deposit capability
electronic funds transfer capability
limited or tiered interest rates
minimum balance requirements (often)
holderType individuals
joint account holders
trusts (in some cases)
insuredBy Federal Deposit Insurance Corporation (FDIC) for banks NERFINISHED
National Credit Union Administration (NCUA) for credit unions NERFINISHED
introducedIn 1970s
mayBeOfferedTo government units
nonprofit organizations
mayCharge check-writing fees (in some cases)
monthly maintenance fees
offeredBy banks
credit unions
savings and loan associations
offeredInJurisdiction United States NERFINISHED
regulatesUnder Regulation Q (historically) NERFINISHED
requires that withdrawals be made through negotiable orders (checks)
similarTo interest-bearing checking account
subjectTo federal banking regulations
reserve requirements (for depository institutions, historically)
typicallyNotOfferedTo for-profit businesses (in many jurisdictions) GENERATED
typicallyOfferedTo consumers GENERATED
usedFor everyday transactions
short-term savings

Referenced by (1)

Full triples — surface form annotated when it differs from this entity's canonical label.

Depository Institutions Deregulation and Monetary Control Act created Negotiable Order of Withdrawal accounts