Interest
abhimanyu
(Querist) 17 April 2013
This query is : Resolved
A has savings accounts in two separate banks. On 16th April, he cuts a cheque of one bank and deposits the same on the same day in his account in another bank. The monry is transferred in 17th April. Now questions are:
a) Which bank will pay interst for 16th april.
b) Which bank will pay interesr for 17th Aptil.
c) Can there be a situation, where A loses interest of one day in such transfer of money from one account to another in different banks.
ajay sethi
(Expert) 17 April 2013
why are you bothered about one day interest
malipeddi jaggarao
(Expert) 18 April 2013
Since the first A's first bank account is debited on 17th (though the cheque is dated 16th), the first bank will pay the interest for 16th. Since the funds are received in A's second bank account on 17th, interest from 17th will be paid by second bank. If the debit and credit i.e., forego of funds in the account of first bank and receipt of funds in the account of second bank is the same day, there is no question of foregoing one day's interest.
You are asking this question keeping something behind your mind. Please ask openly if you have foregone one day interest explaining the full details, so that we can advise you whether the one day interest loss is justified or to whom to approach for refund of loss.
abhimanyu
(Querist) 19 April 2013
At the outset, I do not understand Mr. Ajay Sethi's query as why should not one bothered about interest on his hard earned money,
I am thankful to Mr. Jaggarao for his reply. Nothing is behind my mind. One of my relatives got his retirement proceeds and he transferred funds to his another account and wants to know whether he has lost interest of one day in this situation.
Otherwise also, It may be appreciated that this query to experts is a normal query, which position every ordinary person would like to know.
So, may kindly advise under which situation, one can lose interest of one day in such type of transfer. The practical situation has been stated in the query.
malipeddi jaggarao
(Expert) 19 April 2013
Dear Mr.Abhimanyu
Reply to the last paragraph of your post is already there in my reply. There will not be any loss of interest normally, unless the remittance of funds from one account of the depositor to the other account of the depositor is not effected on the same day. Normally it would be on the same day unless an RTGS/NEFT sent in the last hours is not effected on the same day though the funds are debited. In rare cases it would be credited on the next day. That is the reason why I asked specifically about the details of your query.
V R SHROFF
(Expert) 19 April 2013
Savings bank credit interest on monthly basis, on minimum balance of the month between 11th to 31st dates of the month.
Under the circumstances, a/c holder will loose the interest for entire amount for a full months from both the account..
So it depends on terms & cond of Bank Interest.
If this rule changed now, I m not aware.
One must trf funds between 1-10 of the month to get full interest.
R.K Nanda
(Expert) 19 April 2013
contact concerned banks.
malipeddi jaggarao
(Expert) 19 April 2013
With due respects to learnedMr.Shroff, there is a change in calculation of interest on SB accounts in the Banks. What you said is right in olden days. Now SB interest also is being calculated on daily balances.
