Negotiable Order of Withdrawal (NOW) Account

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Interest-bearing transaction account that combines the payable on demand feature of checks and investment feature of savings accounts. A NOW account is functionally an interest paying checking account. The NOW account began in Massachusetts in 1974 when mutual savings banks offered interest bearing transaction accounts (NOW accounts) to compete with commercial banks. These accounts, which paid a rate of interest equivalent to that of passbook accounts (5l⁄2%), were authorized nationwide for all depository institutions by the 1980 Monetary Control Act. See also Super 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".

Investopedia Says:
Typically commercial banks, mutual-savings banks and savings-and-loan associations can offer this type of account to individuals, some nonprofit organizations and certain governmental units.

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• Banking and Financial Services - negotiable order of withdrawal account: NOW account; checking account in which unused money earns interest