Negotiable Order of Withdrawal account
- Negotiable Order of Withdrawal account
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In the United States, a Negotiable Order of Withdrawal account (NOW account) is a deposit account that pays interest, on which checks may be written.[1]
While a "negotiable order of withdrawal" is essentially identical to a check, US banking regulations define the terms separately and state that an account on which one can draw a "check" cannot pay interest. NOW accounts are structured to comply with Regulation Q, which until July 2011 prohibited interest on traditional checking accounts.
History
NOW accounts are considered checkable deposits, and are counted in the Fed's M1 definition of the money supply. As such, they are considered liabilities from the bank's perspective.[1]
The NOW account was developed and put into effect by Ronald Haselton, former President and CEO of the Consumer Savings Bank in Worcester, MA.[2]
See also
References
- ^ a b Mishkin, Frederic S. (2007). The Economics of Money, Banking, and Financial Markets (Alternate Edition). Boston: Addison Wesley. p. 220. ISBN 0-321-42177-9.
- ^ [1], BUSINESS PEOPLE; Haselton Brothers' Role In Banking Innovations, NY Times Article
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Negotiable order of withdrawal account — (сокр. NOW account, в русской экономической литературе называется НАУ счёт) в США так называется сберегательный счёт, владелец которого имеет право при уведомлении банка за 30 дней выписать обращающиеся приказы об изъятии (negotiable orders of… … Википедия
Negotiable Order of Withdrawal Account — ( NOW account) An interest earning account on which checks may be drawn. Withdrawals from NOW accounts may be offered by commercial banks, mutual savings banks, and savings and loan associations and may be owned only by individuals and certain… … Financial and business terms
negotiable order of withdrawal account — /nɪˌgəυʃiəb(ə)l ˌɔ də əv wɪð drɔ əl əˌkaυnt/ noun US full form of NOW account … Dictionary of banking and finance
Negotiable Order of Withdrawal — ( NOW) The name of an interest bearing checking account that banks are permitted by regulation to offer to certain customers. American Banker Glossary … Financial and business terms
Negotiable Order of Withdrawal (NOW) Account — An interest earning bank account with which the customer is permitted to write drafts against money held on deposit. Also known as a NOW account . Typically commercial banks, mutual savings banks and savings and loan associations can offer this… … Investment dictionary
negotiable order of withdrawal — NOW A type of cheque used in US savings accounts that are interest bearing and from which sums can be withdrawn. If no interest is paid the account is called a NINOW … Big dictionary of business and management
negotiable order of withdrawal — /nɪˌgəυʃiəb(ə)l ˌɔ də əv wɪð drɔ əl/ adjective a cheque written on a NOW account … Dictionary of banking and finance
Negotiable Order of Withdrawal — See N.O.W. account … Black's law dictionary
Negotiable Order of Withdrawal — See N.O.W. account … Black's law dictionary
account — a record of a business transaction. When you buy something on credit, the company you are dealing with sets up an account . This means it sets up a record of what you buy and what you pay. You will do the same thing with any customers to whom you … Financial and business terms
