This is probably a silly question, so apologies. I have a savings account started a few months ago. If I take the money out now will I still get the interest on it from the past few months at the end of the year?


  • 1
    What Country, the regulations are different by country.
    – Dheer
    May 17, 2011 at 13:27

2 Answers 2


The interest payments received in an account depend both upon on how interest is accrued, as well as how it is paid.

The annual interest statement indicates how often interest is paid.

It does not, however, indicate how that interest is calculated or accrued.

Commonly in this type of account in Canada, the interest is calculated monthly based on the lowest balance you had for that month.

If you need specifics, you should check with your financial institution, or check the fine print of the account in question.

Good Luck

  • "the lowest balance you had for that month"? Really? Not average? Sounds like a huge disadvantage to consumers.
    – Vitalik
    May 17, 2011 at 13:25
  • 1
    Depends on the account and the institution. Some are indeed "worst case", particularly for higher-interest, savings-focussed accounts; as in all things, this specific, you need to look at your own institution and fine print.
    – sdg
    May 17, 2011 at 13:26
  • In India it was Average lowest balance every day from 10th to 25th, the balance then interest being calculated for 30 days. However from 2009, its changed to lowest balance every day. The interest methodology is regulated by Central Bank for savings account.
    – Dheer
    May 17, 2011 at 13:29

The interest in your account is usually calculated based on the average monthly balance. What the bank will do is try to figure out how much money did you have on average over the month and give you interest on that amount.

For example, if you had 10k on deposit and took it out half way through the month, you will still receive interest on about 5k, based on a monthly rate.

What I would do is read in detail your agreement with the bank to figure out if your interest is based on an average annual balance and is paid at the end of the year or if it is based on a different measurement. Also, I would be very careful if this is a CD account, since they will have early withdrawal fees.

Hope this helps.

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