Daily interest

G_M

When you make a withdrawal, do you earn interest on the day of withdrawal, or just on the amount in the account at, say, close of business on that day?

Just wondered.

dales1

Usually, you get interest up to (and including) the day before withdrawal.
...And in your new account, you get interest from (and including) the day of deposit.

(Some operators just might be different though).

RG2015

Hi G_M

My accounts pay for the day based on the closing balance on that day. The time the closing balance is measured depends upon the cut off times for making a transfer in or out of the account.

In theory you can transfer out at one minute to midnight and not receive any interest for that day. Equally you can transfer in at one minute to midnight at be paid for that day.

As dales1 says, banks can have different rules and the date that deposits and withdrawals take effect can vary. Banks will show their rules on their websites and in their literature. Also, some banks treat the weekend and bank holidays as working days and others don't record transactions on working days and apply them on the next working day.

Just to put this into some perspective, the interest for one day on £10,000 for the highest rate instant access savings account of 1.30% would be 35 pence (or 36 pence if they round it up).