Definition of negotiable order of withdrawal

a bank or savings and loan withdrawal ticket that is a negotiable instrument. The accounts from which such withdrawals can be made, called NOW accounts, are thus, in effect, interest-bearing checking accounts. They were first introduced in the late 1970s and became available nationally in January 1980. In the early and mid-1980s the interest rate on NOW accounts was capped at 5½%; the cap was phased out in the late 1980s.