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12 USC § 4306 - Payment of interest 

---
identifier: "/us/usc/t12/s4306"
source: "usc"
legal_status: "official_prima_facie"
title: "12 USC § 4306 - Payment of interest"
title_number: 12
title_name: "BANKS AND BANKING"
section_number: "4306"
section_name: "Payment of interest"
chapter_number: 44
chapter_name: "TRUTH IN SAVINGS"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 102–242, title II, § 267, Dec. 19, 1991, 105 Stat. 2338; Pub. L. 102–550, title XVI, § 1604(e)(2)(B), (C), Oct. 28, 1992, 106 Stat. 4084.)"
---

# § 4306. Payment of interest

**(a)** **Calculated on full amount of principal** Interest on an interest-bearing account at any depository institution shall be calculated by such institution on the full amount of principal in the account for each day of the stated calculation period at the rate or rates of interest disclosed pursuant to this chapter.

**(b)** **No particular method of compounding interest required** Subsection (a) shall not be construed as prohibiting or requiring the use of any particular method of compounding or crediting of interest.

**(c)** **Date by which interest must accrue** section 4005 of this title

Interest on accounts that are subject to this chapter shall begin to accrue not later than the business day specified for interest-bearing accounts in , subject to subsections (b) and (c) of such section.

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**Source Credit**: (Pub. L. 102–242, title II, § 267, Dec. 19, 1991, 105 Stat. 2338; Pub. L. 102–550, title XVI, § 1604(e)(2)(B), (C), Oct. 28, 1992, 106 Stat. 4084.)

## Editorial Notes

### Amendments

1992—Subsecs. (a), (c).  made technical amendment to references to “this chapter” to reflect correction of corresponding provision of original act.

## Statutory Notes and Related Subsidiaries

### Effective Date of 1992 Amendment

Amendment by  effective as if included in the Federal Deposit Insurance Corporation Improvement Act of 1991, , as of , see , set out as a note under .