Commercial Account

Bank account maintained by a business, generally a checking account. Business checking accounts generally have higher monthly activity fees and service charges than accounts owned by individuals but receive an Earnings Credit based on average collected balances. Banks are prohibited by Federal Reserve Regulation Q from paying interest on demand deposit accounts, although many corporations maintain interest-bearing savings accounts. In most states, sole proprietor owners of a business may open interest bearing Negotiable Order of Withdrawal (NOW) Accounts and Super Now Accounts. See also Account Analysis; Business Credit; Nonpersonal Time Deposit.