If I transfer money from my account at bank A to my account at bank B, using a free multi-day ACH transfer, is it common that I would not be paid daily interest for the balance while the transfer executes?

I don't care which bank pays me interest or whether I can withdraw it immediately but it would be great if bank B started paying interest the day after bank A stopped.

If different banks have different policies here that would be good to know as well.


Yes, it is common to lose interest during a transfer.

It won't happen with all combinations of banks, and it also varies with which bank starts the transfer. If you do a "pull" transfer, many (but not all) banks will credit your account and pay interest during the transfer, but the funds are on hold (unavailable) until the transfer completes. Others won't give a credit until the transfer clears.

In some cases you will even get lucky and have both banks paying interest for a couple days.

It's probably a good idea to do a test transfer of just a few dollars, and see how much gap, if any, there is between debit and credit.

Your Answer

