---
kind: "section"
citation: "12 U.S.C. § 4306"
title: "12"
title_heading: "Banks and Banking"
number: "4306"
heading: "Payment of interest"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/4306"
units:
  - "Chapter 44 — Truth in Savings"
---

# §4306. Payment of interest

- (a) **Calculated on full amount of principal—** [Interest](/usc/12/4313.md?p=7) on an [interest](/usc/12/4313.md?p=7)-bearing [account](/usc/12/4313.md?p=1) at any [depository institution](/usc/12/4313.md?p=6) shall be calculated by such institution on the full amount of principal in the [account](/usc/12/4313.md?p=1) for each day of the stated calculation period at the rate or rates of [interest](/usc/12/4313.md?p=7) disclosed pursuant to this chapter.
- (b) **No particular method of compounding interest required—** [Subsection (a)](#a) shall not be construed as prohibiting or requiring the use of any particular method of compounding or crediting of [interest](/usc/12/4313.md?p=7).
- (c) **Date by which interest must accrue—** [Interest](/usc/12/4313.md?p=7) on [accounts](/usc/12/4313.md?p=1) that are subject to this chapter shall begin to accrue not later than the business day specified for [interest](/usc/12/4313.md?p=7)-bearing [accounts](/usc/12/4313.md?p=1) in [section 4005 of this title](/usc/12/4005.md), subject to subsections [(b)](/usc/12/4005.md?p=b) and [(c)](/usc/12/4005.md?p=c) of such section.

## 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.)

## Notes

### Editorial Notes

### Amendments

1992—Subsecs. (a), (c). Pub. L. 102–550 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 Pub. L. 102–550 effective as if included in the Federal Deposit Insurance Corporation Improvement Act of 1991, Pub. L. 102–242, as of Dec. 19, 1991, see section 1609(a) of Pub. L. 102–550, set out as a note under section 191 of this title.