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Can an LLC have an interest-bearing checking account? – IBA Compliance Connection

IBA Compliance Connection

Your go to source for compliance!

Can an LLC have an interest-bearing checking account?

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Yes, an LLC can open an interest-bearing checking account. The Dodd-Frank Act repealed the prohibition on paying interest on business demand deposit accounts. Banks now may offer interest-bearing accounts to any business, including an LLC.

For resources related to our guidance, please see:

  • FDIC Final Rule, Interest on Deposits, 76 Fed. Reg. 41392 (July 14, 2011) (“Section 627 of the DFA repealed the statutory prohibition against the payment of interest on demand deposits, effective one year from the date of the DFA's enactment, July 21, 2011.”)