DEFINITION of 'Commercial Account'
Any type of financial account that is owned and used by a business or corporation. Commerical account usually refers to a checking or other type of demand deposit account. Regulation Q of the Federal Reserve prohibits banks from paying interest on this type of account. They instead pay earnings credits that are based upon the average account balance.
BREAKING DOWN 'Commercial Account'
Commerical accounts usually have higher monthly service charges and other related fees than retail accounts. Many firms also hold regular interest-bearing savings accounts, which do pay regular interest. Most states also allow sole proprietors to open negotiable order of withdrawal (NOW) checking accounts that also pay regular interest.