NOW Deposit Account

NOW Deposit Account Meaning:
A Negotiable Order of Withdrawal (NOW) deposit is a bank product offered by some commercial banks that provide the feature where customers funds in this account to earn interest on the amount deposited but may require a minimum balance and allow you to withdraw these funds without advanced notice. However according to the CFPD, some credit unions and banks may require at least seven days written notice to withdrawal although this may be rare. According to the CFPB It is similar to checking account but may allow you to earn interest on the funds in this account.

For example both individuals and businesses who maintain a high account balance in their checking account may benefit from opening an interest bearing account like a NOW account. However some online savings accounts may also may similar features to pay interest and to withdraw funds without notice.