No. There is the little problem of a federal law that has been on the books since the 1930s that prohibits the payment of interest on demand deposit accounts.
NOW (Negotiable Order for Withdrawal) accounts were conceived in the 1970s when a loophole was discovered that would permit check-like instruments to be issued against savings accounts. Although ownership of NOW accounts is limited to individuals, most non-profits, and domestic government units, they continue to be a way for banks to pay interest on accounts that operate just like their checking-account cousins, demand deposit accounts.
Why aren't they demand deposits? Because there is a requirement that the bank reserve a right to require up to seven days' notice of intent to withdraw funds. Even though the right is never exercised, it's enough to classify these accounts as savings accounts on which checks can be written instead of demand deposits that earn interest.
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No. There is the little problem of a federal law that has been on the books since the 1930s that prohibits the payment of interest on demand 