Q: How does an interest-bearing DDA differ from a NOW account?
A: As outlined in the table found in the FAQs, there are several differences between DDAs (interest-bearing
and noninterest-bearing) and NOW accounts:
-IDI reserves the right to require at least seven days' written notice prior to withdrawal or transfer of any funds(See 12 C.F.R. § 204.2(e)(2))
-Only individuals, nonprofit organizations and governmental units can own a NOW account; for-profit entities are expressly prohibited from holding NOW accounts
-IDI does not reserve the right to require at least seven days' written notice of an intended withdrawal (See 12 C.F.R. §
-Any depositor can own a DDA
This question and the table can be found in - FAQ#21 of FDIC’s FAQs. FDIC’s FAQs can be found at: http://www.fdic.gov/deposit/deposits/unlimited/faq.pdf