Answer:
by Ken Golliher: Banks have been allowed to pay interest on demand deposits since July 21, 2011. That adjustment allowed them to pay interest on DDAs opened by partnerships, corporations, LLCs etc.; i.e. entities that are ineligible for NOW accounts.
NOW accounts first became legal in the early 1980s.
Answer:
by John Burnett: NOW accounts became legal for banks to offer in limited parts of the country in the early 1970s. They were permitted nationwide starting in 1980.
The 2010 date in your question is the date on which the Dodd-Frank Act was passed. It included a provision eliminating one year later provisions of various laws prohibiting interest on demand deposit accounts. Those provisions had been on the books since the 1930s.
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