Legal Definitions - negotiable-order-of-withdrawal account

Definition: A type of interest-bearing savings account that allows the account holder to write checks. Also known as a NOW account.

Example: John has a NOW account with his bank. He can write checks to pay his bills and earn interest on the balance in his account.

Explanation: A NOW account is a type of bank account that combines the features of a savings account and a checking account. The account holder can earn interest on the balance in the account and also write checks to pay bills. The example illustrates how John uses his NOW account to manage his finances and earn interest on his savings.