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Is a Business Allowed to have a NOW Account?

Is a business allowed to have a NOW Account?

by Jim Bedsole:

The rules for NOW accounts have not changed. If you are still offering NOW accounts, the only type of entities that can have that are certain non-profits and sole proprietorships. However, the rules prohibiting payment of interest on business demand deposit were eliminated, so you can now offer interest bearing DDA accounts to business entities of any type. They just should not be called NOW accounts.


by John Burnett:

To not be NOW accounts, you (1) don't call them NOW accounts and (2) don't reserve the right to require notice of withdrawal. then anyone can have the account (a demand deposit account, with or without interest), from to your Aunt Tillie.

First published on 08/04/2019

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