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Investment Dictionary:

Super NOW Account

An account created in 1982 that offers a higher interest rate than a NOW account but lower interest than a money market account.

Investopedia Says:
Specific requirements, such as minimum deposits and interest rates, for super NOW accounts vary between banks. This is due to the 1986 deregulation of bank deposit accounts. Today, banks can charge interest based on their costs and competitive requirements.

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Deregulated transaction account authorized for depository institutions in 1982. It paid interest higher than on a conventional NOW (Negotiable Order of Withdrawal) account but slightly lower than that on the Money Market Deposit Account (MMDA). With the deregulation of banking deposit accounts in 1986, however, banks are free to pay whatever rates they feel cost considerations and competitive conditions warrant. Although some banks continue to offer MMDA accounts which pay a slightly higher rate to compensate for the fact that checkwriting is limited to three checks a month, most banks now offer one transaction account with unlimited checkwriting.

 
 

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Investment Dictionary. Copyright ©2000, Investopedia.com - Owned and Operated by Investopedia Inc. All rights reserved.  Read more
Financial & Investment Dictionary. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more

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