§4005 Payment of Interest

Summary

Interest must start accruing on money put into an interest-bearing account no later than the business day the bank gives provisional credit (temporary credit) for that deposit. That rule does not apply to an account at a depository institution described in section 461(b)(1)(A)(iv) if the institution starts paying interest later for all funds, including cash, and gives notice as required under section 4004(e). No interest is required on money deposited by a check that is later returned unpaid.