Interest Bearing Savings Accounts, NOW & Super
- A savings or checking account that pays the account holder an
amount of interest for the funds on deposit.
There are two major types of interest bearing accounts and these
- NOW accounts at banks and savings and loans, which stands
for 'negotiable orders of withdrawal'. Those at credit unions
are monikered share draft accounts. NOW accounts offer the advantage
of checking writing on accounts that bear interest, and, interest
rates and fees are set by the financial institution.
- Super NOW is a hybrid of the NOW account and money market
deposit accounts, having no interest limit and with checking
writing and withdrawal
abilities. Super NOW's pay variable rates of interest (without
ceilings) and they normally have higher minimum balance requirements
minimum balances are not maintained by the customer.
Note: Interest rate ceilings were eliminated
as a result of government deregulation in the 1980's.