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Can a business open an interest bearing checking account? – IBA Compliance Connection

IBA Compliance Connection

Your go to source for compliance!

Can a business open an interest bearing checking account?

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Yes a business may hold an interest bearing checking account. The Dodd-Frank Act removed the prohibition on paying interest on ordinary demand deposit accounts held by businesses, and that provision has been in effect since July 21, 2011.

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 Reg. 41392 (July 14, 2011) (“Section 627 of the DFA repealed the statutory prohibition against the payment of interest on demand deposits, effective one year from the date of the DFA's enactment, July 21, 2011.”)