My bank refused to open a Negotiable Order of Withdrawal (NOW) account for my business. Why?
For-profit organizations (e.g., corporations, partnerships, associations, business trusts) are not eligible for NOW accounts.
A NOW account is an interest-earning bank account with which the customer is permitted to write drafts (similar to checks) against money on deposit.
However, an individual doing business as (DBA) a sole proprietor or under a trade name (e.g., Joe Smith doing business as "Smith Enterprises") can maintain a NOW account. The account would have to be in the individual's name or in the DBA name.
Last Reviewed: April 2021
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