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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

Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on should not be construed as legal advice or a legal opinion of the OCC.

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