Interest Bearing Business Accounts: Who's eligible?

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Question:

We are having a debate over interest bearing checking accounts to certain business customers. What are the businesses, if any that you can pay this type of interest to??

Answer:

Any business may have a money market deposit account. While not a checking account by definition, it is similar in characteristics.

NOW accounts may be held by certain nonprofits (refer to the IRS regs under 501(c)(3)) and soleproprietorships.

First published on BankersOnline.com 10/28/02