Title 12 — Banks and BankingRelease 119-73
§4005 Payment of interest
Title 12 › Chapter CHAPTER 41— - EXPEDITED FUNDS AVAILABILITY › § 4005
Summary
Banks must start paying interest on money put into an interest-bearing account no later than the business day when the bank gives provisional credit for that deposit. An exception applies to accounts listed in section 461(b)(1)(A)(iv) if the bank starts interest later for all deposits (including cash) and gives the notice required by section 4004(e). Also, there’s no rule forcing payment of interest on money deposited by a check that is returned unpaid.
Full Legal Text
Title 12, §4005
Banks and Banking — Source: USLM XML via OLRC
(a)Except as provided in subsection (b) or (c) and notwithstanding any other provision of law, interest shall accrue on funds deposited in an interest-bearing account at a depository institution beginning not later than the business day on which the depository institution receives provisional credit for such funds.
(b)Subsection (a) shall not apply to an account at a depository institution described in section 461(b)(1)(A)(iv) of this title if the depository institution—
(1)begins the accrual of interest or dividends at a later date than the date described in subsection (a) with respect to all funds, including cash, deposited in such account; and
(2)provides notice of the interest payment policy in the manner required under section 4004(e) of this title.
(c)No provision of this chapter shall be construed as requiring the payment of interest or dividends on funds deposited by a check which is returned unpaid.
Legislative History
Notes & Related Subsidiaries
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Sept. 1, 1988, see section 613(b) of Pub. L. 100–86, set out as a note under section 4001 of this title.
Reference
Citations & Metadata
Citation
12 U.S.C. § 4005
Title 12 — Banks and Banking
Last Updated
Apr 6, 2026
Release point: 119-73