FDIC FAQs-Since IDIs can now pay interest on DDAs, can IDIs still offer NOW account products?

Compliance > Deposit Operations > FDIC FAQs on Insurance and Payment of Interest on Demand Deposit Accounts

Q:  Since IDIs can now pay interest on DDAs, can IDIs still offer NOW account products?


A:  Yes. Congress did not abolish or change the law regarding NOW accounts when it enacted

Section 627. The laws (e.g., 12 U.S.C. 1832) and regulations (e.g., 12 C.F.R. § 204.130)

regarding NOW accounts remain intact without any modifications. IDIs can still offer

NOW account products to eligible customers – individuals, nonprofit organizations and

governmental units. For-profit entities are not eligible to own NOW accounts.



This can be found in - FAQ#20 of FDIC’s FAQs.  FDIC’s FAQs can be found at: http://www.fdic.gov/deposit/deposits/unlimited/faq.pdf

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