Although it was once illegal, banks are now permitted to pay interest on business checking accounts.

Question

Quizplus · Accepted Answer

This change occurred due to the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was enacted in July 2010. Before this act, Regulation Q prohibited banks from paying interest on demand deposits (checking accounts) to businesses. The repeal of this prohibition allowed banks to start offering interest on business checking accounts.

Although It Was Once Illegal, Banks Are Now Permitted to Pay