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Req Q Paying Interest on Business & Corporations?

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Question: 
Reg Q permits banks to pay interest on business accounts, but if we do and have corporations in this account, are we violating Regulation D?
Answer: 

by Randy Carey:

Since these would be interest bearing DDA accounts, I am not sure what Regulation D violation you would be referring too?

Answer: 

by Brian Crow:

If your institution is still offering Negotiable Order of Withdrawal (NOW) accounts, the ownership prohibitions of Regulation D are still in place.

With Regulation Q's repeal in 2011, institutions could begin offering interest bearing checking accounts to for-profit businesses. There is no Reg D violation provided you are offering interest bearing checking accounts to for-profit entities and not NOW accounts.

First published on 08/04/2019

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