DEFINITION of 'Negotiable Order of Withdrawal (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".

BREAKING DOWN 'Negotiable Order of Withdrawal (NOW) Account'

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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RELATED FAQS
  1. How can I cancel a bank draft that I have purchased?

    Learn about what a bank draft is and how it works, the circumstances under which a bank draft may be cancelled, and what ... Read Answer >>
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