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#1116413 - 01/23/09 08:49 PM MMDA vs NOW
Anonymous
Unregistered

Prepping a list for examiners here and freaking out...

Are MMDA's considered NOW accounts? I have entities in my MMDA's and I am concerned they should nto be there.

Help!

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#1116423 - 01/23/09 08:55 PM Re: MMDA vs NOW Anonymous
BrendaC Offline
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BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
No. A commercial entity can have a MMDA (it's like a savings account). Primary concern with a NOW is whether you are opening for qualified persons. Primary concern for the MMDA is how you monitor for excess debits.
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#1116456 - 01/23/09 09:11 PM Re: MMDA vs NOW BrendaC
Andy_Z Offline
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Andy_Z
Joined: Oct 2000
Posts: 27,485
On the Net
As Brenda points out, they have different features.

An MMDA has limited transaction capability. Anyone can own one and the rates and minimum balance requirements are usually higher than for a NOW.

A NOW has unlimited transaction capabilities, but has limited ownership requirements.

You should be able to look at an alpha list of NOW owners and not see things like "Corp", "LLC" etc.
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AndyZ CRCM
My opinions are not necessarily my employers.
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#1116467 - 01/23/09 09:17 PM Re: MMDA vs NOW Andy_Z
Anonymous
Unregistered

Can a nonprofit, such as achurch, community opg or such have a NOW account?

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#1116502 - 01/23/09 09:35 PM Re: MMDA vs NOW Anonymous
Rocky P Offline
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Joined: Jun 2003
Posts: 7,402
Florida
I believe that the following can have NOW accounts

Individuals
Sole proprietorships
Husband and wife unincorporated businesses
Organizations not operated for profit but operated primarily for religious, charitable, educational, philanthropic, political, or similar purposes
Federal, state, and local government bodies
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