Examples of NOW account in a sentence
If withdrawals or transfers by check, draft, or similar instrument are permitted or authorized, the account is considered a NOW account.
Deposits (cont.):NOTE: There are no regulatory requirements with respect to minimum balances to be maintained in a NOW account or to the amount of interest that may be paid on a NOW account.
On the other hand, an account that otherwise meets the definition of a savings deposit but that authorizes or permits the depositor to exceed the six-transfer/withdrawal rule shall be reported as a transaction account, as follows: (1) If the depositor is ineligible to hold a NOW account, such an account is considered a demand deposit.
NOTE: There are no regulatory requirements with respect to minimum balances to be maintained in a NOW account or to the amount of interest that may be paid on a NOW account.
On the other hand, an account that otherwise meets the definition of a savings deposit but that authorizes or permits the depositor to exceed the six-transfer/withdrawal rule or three-draft rule shall be reported as a transaction account, as follows: (1) If the depositor is ineligible to hold a NOW account, such an account is considered a demand deposit.
Otherwise, an organization may hold a NOW account only if it is operated primarily for religious, philanthropic, charitable, educational, or other similar purpose.
In a typical arrangement, a bank creates a master account and two subaccounts: a transaction subaccount (either a demand deposit account or a NOW account), which is subject to reserve requirements, and a nontransaction savings subaccount (a special-purpose money market deposit account (MMDA)), which is not subject to reserve requirements.
If your account is a NOW account or a non-demand deposit checking account, we have the right to require seven (7) days prior written notice from you of your intent to withdraw any funds from your account.
A NOW account may also be held by a for profit organization serving in a fiduciary or trustee capacity for an entity that is itself permitted to hold a NOW account.
If the depositor is eligible to hold a NOW account, the account will be considered either a NOW account, a telephone or preauthorized transfer, or an ATS account.