How is interest paid in online savings account?

taxhastobetaxing

If you have 5,000 in the bank in April 07 with net interest of 3%, but then take out 4,000 in March 08, do you only get paid interest on the 1,000 remaining at 3% in April 08? or is the interest accumulated daily/monthly but only paid annually, therefore you get paid interest on the 5,000 you had for all those months and also the 1,000 you have remaining?

Steve_xx

Interest paid annually accumulates on a daily basis. You would get interest for all those months you had the 5k invested, then for the last month you would only earn interest on the remaining £1k. You wont miss out by withdrawing monies, unless the account you have it in has some specific strings attached?