MMDA vs NOW

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!

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.

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.

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

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