Do you lose one days interest when moving money across accounts?

dont_use_vistaprint

I made withdrawal from Monument to place money into RCI & Skipton the money came into a current linked account, but the other two accounts aren’t ready yet so today I’ve shifted it back into Monument rather than have it sat there earning nothing and I will have to do the same when the accounts are ready to receive deposits. Luckily with Monument and Barclays, everything is instant so it came out and went back an hour later, but not all the savings accounts are. And typically, you have to come into a linked account and then back out again into a savings account

Does this whole process lose you a day or two of interest?  if it is instant do you still lose some interest by not having the money for a full 24 hours in either account?

badger09

dont_use_vistaprint said:

I made withdrawal from Monument to place money into RCI & Skipton the money came into a current linked account, but the other two accounts aren’t ready yet so today I’ve shifted it back into Monument rather than have it sat there earning nothing and I will have to do the same when the accounts are ready to receive deposits. Luckily with Monument and Barclays, everything is instant so it came out and went back an hour later, but not all the savings accounts are. And typically, you have to come into a linked account and then back out again into a savings account

Does this whole process lose you a day or two of interest?  if it is instant do you still lose some interest by not having the money for a full 24 hours in either account?

The process you describe shouldn’t lose a day’s interest, providing there are no delays. Most (all?) providers calculate interest daily, based on the account balance at their ‘cut off’ time. I’m not aware of any which specifies it must remain for a full 24 hour period. So, if you move money out of Bank A it will not be included in your balance for that day’s interest. As long as it arrives in Bank B on the same day, it will be in your balance so will attract interest. 

I’m the past some savvy🤔 posters tried to take advantage by moving money from A to B and back again at certain times so that it appeared in both balances at the appropriate cut off time. IIRC, it didn’t end well. 

friolento

You could lose a day’s (or more) worth if the new provider only pays interest from the day after deposit, or if you miss the (usually unpublished) daily cut off, or if your old provider deducts your balance immediately but doesn’t send the money until the next working day. You need to look at the T&Cs of each account to know what applies. 

Conversely, you might find accounts from which you can send money instantly but if you do this after the provider’s daily cut off, you still get the interest for the day from them. If the cut off of the new provider is after your transfer arrives, you get interest from them, too.

In all cases, you are likely to just talk about small/tiny sums of money