An account that may be interest-bearing and is subject to negotiable order of withdrawal or by other means authorized by the bank. NOW accounts at GMAC Bank include the GMAC Relationship Account and the GMAC Basic Checking 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 nonprofit organizations and governmental units.
Negotiated certificate of deposit Negotiated markets
A bank account through which the customer is permitted to write drafts against money held on deposit.
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. The name stems from the history of banking in the United States which prohibits interest on checking accounts. Payment law meant that checks were negotiable instruments so some banks sought the permission to allow depositors the ability to issue negotiable withdrawals that can be given to a third party.