Banking Practice Showdown 2025 – Vault into Your Future Success!

The correct answer is that checking accounts allowing unlimited check-writing while also paying interest are known as NOW accounts. NOW stands for Negotiable Order of Withdrawal, which combines features of both checking and savings accounts. This type of account allows account holders to write checks against their funds while earning interest, providing both liquidity and the potential for some income generation.

Demand deposit accounts, while allowing unlimited withdrawals, typically do not pay interest. Money market deposit accounts may offer interest and some check-writing privileges, but often come with restrictions on the number of checks that can be written. Certificates of deposit, on the other hand, do not allow check-writing at all and generally require that funds remain untouched for a set term to earn interest. Thus, NOW accounts uniquely fulfill the criteria of being a checking account that provides both unlimited check-writing and interest earnings.