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Simple English definitions for legal terms
negotiable-order-of-withdrawal account
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A quick definition of negotiable-order-of-withdrawal account:
A negotiable-order-of-withdrawal account, also known as a NOW account, is a type of savings account that allows the account holder to write checks and earn interest on their balance. It is similar to a checking account but typically has higher interest rates. The account holder can withdraw money from the account at any time, and there may be fees for certain transactions or if the balance falls below a certain amount. Overall, a NOW account is a convenient way to save money while still having access to it when needed.A more thorough explanation:
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.