---
kind: "section"
citation: "12 U.S.C. § 4005"
title: "12"
title_heading: "Banks and Banking"
number: "4005"
heading: "Payment of interest"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/4005"
units:
  - "Chapter 41 — Expedited Funds Availability"
---

# §4005. Payment of interest

- (a) **In general—** Except as provided in subsection [(b)](#b) or [(c)](#c) and notwithstanding any other provision of law, interest shall accrue on funds deposited in an interest-bearing [account](/usc/12/4001.md?p=1) at a [depository institution](/usc/12/4001.md?p=12) beginning not later than the [business day](/usc/12/4001.md?p=3) on which the [depository institution](/usc/12/4001.md?p=12) receives provisional [credit](/usc/12/5481.md?p=7) for such funds.
- (b) **Special rule for credit unions—** [Subsection (a)](#a) shall not apply to an [account](/usc/12/4001.md?p=1) at a [depository institution](/usc/12/4001.md?p=12) described in [section 461(b)(1)(A)(iv) of this title](/usc/12/461.md?p=b-1-A-iv) if the [depository institution](/usc/12/4001.md?p=12)—
  - (1) begins the accrual of interest or dividends at a later date than the date described in [subsection (a)](#a) with respect to all funds, including [cash](/usc/12/4001.md?p=4), deposited in such [account](/usc/12/4001.md?p=1); and
  - (2) provides notice of the interest payment policy in the manner required under [section 4004(e) of this title](/usc/12/4004.md?p=e).
- (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](/usc/12/4001.md?p=7) which is returned unpaid.

## Source credit

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

## Notes

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective Sept. 1, 1988, see section 613(b) of Pub. L. 100–86, set out as a note under section 4001 of this title.