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negotiableorderofwithdrawalaccount

negotiable order of withdrawal account

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Definitions of negotiable order of withdrawal account in various dictionaries:

NEGOTIABLE ORDER OF WITHDRAWAL ACCOUNT - In the United States, a negotiable order of withdrawal account (NOW account) is a deposit account that pays interest, on which an unlimited number of...

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Negotiable order of withdrawal account description
In the United States, a negotiable order of withdrawal account (NOW account) is a deposit account that pays interest, on which an unlimited number of checks may be written.While a negotiable order of withdrawal is essentially identical to a check drawn on a demand deposit account, US banking regulations define the terms "demand deposit account" and "negotiable order of withdrawal account" separately. And until July 2011, Regulation Q stated that a demand deposit could not pay interest. NOW accounts were structured to comply with Regulation Q. * NOW accounts are considered checkable deposits, and are counted in the Fed's M1 definition of the money supply, as well as in the broader definitions. Like all bank deposits, they are liabilities from the bank's perspective.

Negotiable order of withdrawal account description

In the United States, a negotiable order of withdrawal account (NOW account) is a deposit account that pays interest, on which an unlimited number of checks may be written.While a negotiable order of withdrawal is essentially identical to a check drawn on a demand deposit account, US banking regulations define the terms "demand deposit account" and "negotiable order of withdrawal account" separately. And until July 2011, Regulation Q stated that a demand deposit could not pay interest. NOW accounts were structured to comply with Regulation Q.
* NOW accounts are considered checkable deposits, and are counted in the Fed's M1 definition of the money supply, as well as in the broader definitions. Like all bank deposits, they are liabilities from the bank's perspective.

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