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Question & Answer
Question: We have a commercial customer who makes a deposit and a transfer out of their savings account by NECH every day. We're a little concerned that this should not be happening.
Answer: You should be concerned. Your customer is not a "non-profit" account, and therefore using the interest bearing account the way you described makes it a transaction account. As soon as it is such an account, you're limited to the six transactions allowed.
There is legislation now before Congress to lift the restriction on NOW accounts for commercial customers - but there have been so many unfavorable amendments added to the bill that we have small hopes of it passing.
Copyright © 2000 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 10, No. 6, 2/00
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