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Bank Accounts - Interest-Bearing Accounts

I closed my interest-bearing account, but the bank did not pay me all the accrued interest.

If you closed the account before the bank credited accrued interest, generally that interest is not paid out. (This is known as forfeiture of interest.) However, the bank must disclose this policy in the account agreement you received when you opened the account.

To find out your bank's policy, review the account agreement.

The bank no longer pays interest on my Money Market account because I wrote too many checks. Can it do this?

Three types of accounts—money market accounts, passbook accounts or statement savings accounts—are limited to no more than six transfers and withdrawals per calendar month or per statement cycle.

No more than three of the six transfers may be made by check, draft, or debit card. The other transfers can be made by pre-authorized or automatic transfer, telephonic agreement, order, or instruction.

The bank must prevent either withdrawals or transfers of funds that are in excess of these limits. If you exceed the prescribed limits on more than an occasional basis, the bank must do one of three things:

Who sets the interest rates on savings accounts?

A national bank is a private business. Generally, it sets its own interest rates on savings accounts.

If you feel that your bank does not pay an adequate interest rate, shop around—and purchase your financial services accordingly.

How can I calculate the APY on my account?

You can download the Annual Percentage Yield Calculation Program for free directly from the OCC Web site. Or you can order a copy on CD for $20 (to cover shipping and handling).

Copyright 2007 by Mark McCracken , All Rights Reserved