Answer:
On July 27, 2011, the first anniversary of the signing of the Dodd-Frank Act, the prohibitions in the law against paying interest on demand deposits will officially be repealed. At that point, it will be the industry that decides whether a business gets interest on a checking account. Effectively, the end of the prohibition will eliminate the need for NOW or ATS accounts.
However, the eligibility requirements for NOW accounts will not change. Technically, you will be able to pay interest on a demand deposit account (including one held by a for-profit business), but it will not be a NOW account. What's going away are the prohibitions in Regulation Q, not the definitions in Regulation D.
First published on BankersOnline.com 10/04/10; updated 12/20/2010.
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