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Weekend deposit interest
November 30, 2019
6:25 am
Bud
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Is interest paid Saturday and Sunday if funds deposited on the weekend. Ive noticed one bank time stamp online a weekend deposit the following business day Monday

GIC King

November 30, 2019
8:11 am
Doug
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Good question, Bud, but often the date you're seeing is the posting date not the transaction date. Rest assured, unless otherwise stated, interest is calculated daily and paid monthly on the end of day closing balance. It's based on a 365 day year (366 next year).

Cheers,
Doug

November 30, 2019
8:14 am
Norman1
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That's common practice.

Interest is paid for money still on deposit Saturday and Sunday. However, one usually can only deposit money in, for interest calculation purposes, on a business day.

So, one will need to deposit the money in on the business day before the weekend.

November 30, 2019
9:55 am
Bill
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So if you bought a 1-year GIC last March 1 or later you have to hold it for 366 days to get your year's interest, I guess.

November 30, 2019
1:24 pm
Righand
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Bill said
So if you bought a 1-year GIC last March 1 or later you have to hold it for 366 days to get your year's interest, I guess.  

It's not really a big deal because you'll be paid for 366 days, at least that has been my experience but lately with HISA's paying more I've been avoiding the 1 year issues.

November 30, 2019
4:17 pm
Norman1
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I'm not so sure about getting extra interest for the leap day with a one-year GIC.

Maturity is one calendar year, regardless of length of the year. If the interest is compounded monthly, then one could extra interest for the leap day. But, if the interest is compounded or paid out annually, then one will just get the quoted interest per annum, regardless of the days in the year.

November 30, 2019
8:30 pm
Bud
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same thing line of credit why pay it back Sat or Sun if they dont credit till Mon. Dont let them use ur funds for free

frontline bank staff has no idea..

GIC King

December 26, 2019
6:01 pm
COIN
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Norman1 said
That's common practice.

Interest is paid for money still on deposit Saturday and Sunday. However, one usually can only deposit money in, for interest calculation purposes, on a business day.

So, one will need to deposit the money in on the business day before the weekend.  

I made an online transfer to my B2B/LBC HISA on a Saturday and it was credited to my account on the same day so I assume I'm getting interest credit for both Saturday and Sunday.

Not so with Simplii where the credit was on the following Monday. Maybe because it was an ATM deposit and not an online transfer.

December 27, 2019
11:34 am
Norman1
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Simplii Financial does the same for online transfers too.

In addition, the dates shown on Simplii's online banking web site are the posting dates of the transactions. Those are not necessarily the same as the effective dates of the same transactions for interest calculations. The effective dates for interest calcuations are shown in their monthly statements.

The situation may be similar with LBC Digital or B2B Bank. One will need to check the interest paid at the end of this month to see if the effective date of those transfers is really Saturday.

December 27, 2019
2:27 pm
Rick
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Wouldn't it depend on which FI you are using and whether or not they are me2Me?
When I do a transfer at one of mine, they post date it until the next business day (not on me2me). Other one posts it immediately (though on hold) and it's earning right away (me2me). I can also deal with taking out GICs and doing transfers on weekends and holidays. My last scheduled rung in a GIC ladder I had due was opened on a Sunday because on Friday they posted rates were dropping on Monday. So now 1 rungs' anniversary is on the 10th and the rest are on the 11th.
Realistically, I don't think they actually move things around on weekends, they just date it as having happened, so count that interest.

December 27, 2019
4:44 pm
COIN
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With online, telephone and ATM banking why can't the banks and CU's operate on a 24/7 basis? It's not like they need humans. The machines can do it all.

Also, I notice they debit my mortgage payments on the 1st of every month regardless whether it is a Saturday, Sunday, Christmas, New Year, etc.

December 27, 2019
7:40 pm
Norman1
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The machines at Payments Canada that clear and help settle transactions between the financial institutions don't operate on weekends and statutory holidays.

The Bank of Canada doesn't move funds between the settlement accounts on weekends either.

December 28, 2019
6:50 am
pooreva
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Does it really matter? Or you regularly deposit 1 million every Saturday at the bank paying 3%/year? I do not know how do you manage to stuff 10,000 $100 bills into ATM. Oh, I know... you write a cheque...

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