NOW account

NOW account definition - business

NOW account

An interest-bearing account on which checks may be written. Authorized on a national scale in 1981, these accounts pay a relatively small return. Therefore, the balances in NOW accounts should be kept at the minimum necessary to provide needed funds without incurring service charges. Also called negotiable order of withdrawal.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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