Savings and interest Query

antispam246

If a savings account pays monthly interest how and when is this exactly calculated?

I'm assuming different accounts work on different principles, is this possible even if say both accounts pay interest monthly?

The basis of my query, which should direct my actual question, is;

If the savings account pays interest monthly and this interest is paid on say the 1st of every month, could you simply move a lump sum in and out of the account prior to the interest date? For arguments sake we'll assume the lump sum arrives in the account prior to the interest payment date and the account is not limited in anyway that would incur penalties when moving the money.

jennifernil

I'm afraid the banks are not that naive! The interest is calculated on a daily basis and credited on the due date each month.

antispam246

I figured as much, thank you for verifying.

Paul_Herring

Calculated, and accrued daily, credited monthly/annually.

If the money's in there for (say) 3 days, it'll get 3 days interest.