12 USC § 4005 - Payment of interest

---
identifier: "/us/usc/t12/s4005"
source: "usc"
legal_status: "official_prima_facie"
title: "12 USC § 4005 - Payment of interest"
title_number: 12
title_name: "BANKS AND BANKING"
section_number: "4005"
section_name: "Payment of interest"
chapter_number: 41
chapter_name: "EXPEDITED FUNDS AVAILABILITY"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 100–86, title VI, § 606, Aug. 10, 1987, 101 Stat. 646.)"
---


# § 4005. Payment of interest

**(a)** **In general** Except as provided in subsection (b) or (c) and notwithstanding any other provision of law, interest shall accrue on funds deposited in an interest-bearing account at a depository institution beginning not later than the business day on which the depository institution receives provisional credit for such funds.

**(b)** **Special rule for credit unions** Subsection (a) shall not apply to an account at a depository institution described in section 461(b)(1)(A)(iv) of this title if the depository institution—

**(1)** begins the accrual of interest or dividends at a later date than the date described in subsection (a) with respect to all funds, including cash, deposited in such account; and

**(2)** provides notice of the interest payment policy in the manner required under section 4004(e) of this title.

**(c)** **Exception for checks returned unpaid** No provision of this chapter shall be construed as requiring the payment of interest or dividends on funds deposited by a check which is returned unpaid.

---

**Source Credit**: (Pub. L. 100–86, title VI, § 606, Aug. 10, 1987, 101 Stat. 646.)

## Statutory Notes and Related Subsidiaries

### Effective Date

Section effective , see , set out as a note under .