Yes, banks may offer interest-bearing checking accounts to businesses. The Dodd-Frank Act removed the prohibition on paying interest on ordinary demand deposit accounts held by businesses.

We are not aware of any Illinois or federal laws prohibiting a bank from offering higher deposit interest rates to a particular business customer, provided that the customer is not a bank insider. Because your bank is a national bank, it is subject to the restriction on payments of preferential interest rates to insiders for members of the Federal Reserve.

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 Reg. 41392 (July 14, 2011) (“Section 627 of the DFA repealed the statutory prohibition against the payment of interest on demand deposits, effective one year from the date of the DFA’s enactment, July 21, 2011.”)

• Federal Reserve Act, 12 USC 376 (“No member bank shall pay to any director, officer, attorney, or employee a greater rate of interest on the deposits of such director, officer, attorney, or employee than that paid to other depositors on similar deposits with such member bank.”)