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Bank Accounts - Business Accounts

Can the bank change the terms of a business checking account?

Generally, a national bank can change the terms of a business checking account as long as the bank notifies account holders at least 30 days before implementing a change to the bank's availability policy.

Exception: Any change that expedites (speeds up) the availability of funds—a positive impact for the consumer—may be disclosed not later than 30 days after implementation.

My bank refused to open a NOW account for my business. Why?

A NOW account is an interest-earning bank account with which the customer is permitted to write drafts against money held on deposit.

Entities organized or operated to make a profit (e.g., corporations, partnerships, associations, business trusts) may not maintain NOW accounts.

However, an individual doing business as (DBA) a sole proprietor or under a trade name (e.g., Joe Smith doing business as “Smith Enterprises”) can maintain a NOW account. The account would have to be in the individual's name or in the DBA name.

Copyright 2007 by Mark McCracken , All Rights Reserved