Negotiable Order of Withdrawal (NOW) Account

[n(egotiable) o(rder of) w(ithdrawal).]

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.

Related Links:
It's a part of everyone's life, and we all want it, but do you know how it gains value and how it is created? What Is Money?
Learn and ensure the different rates quoted to you by banks and institutions are what they claim to be. APR vs. APY: How the Distinction Affects You

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.