When should interest begin to accrue for deposited funds?

Interest for deposited funds is required to begin accruing no later than the business day of deposit credit. This means that once the financial institution has officially recorded the deposit, interest should start to accrue. This provision is part of the Truth in Savings Act (TISA), which aims to ensure consumers receive fair and clear information regarding interest earned on their deposits.

Accruing interest from the business day of deposit credit ensures that consumers are compensated fairly for the time their funds are held by the bank. This approach aligns with the goals of TISA by promoting transparency and allowing depositors to accurately understand how their interest calculations work.

Other options suggest starting interest accrual at less favorable times for the depositor, such as immediately upon deposit (which can be impractical due to processing times) or at the end of the deposit period, neither of which adheres to the requirement that recognizes the bank's responsibility to start interest accrual promptly once the deposit is credited. Similarly, only starting accrual after the first monthly statement would not provide consumers timely benefit from their deposits, contrary to the intent of TISA.