Be Careful Closing Accounts

You must be present to win.... A reader recently posted how a family member lost out on accrued interest by closing his account at Emigrant Direct. It turns out that you don't get your interest payment if you close your account before the end of the month.

At Emigrant Direct, interest is paid on the last day of the month -- so if you're going to close an account there do it on the first day of the month. Their fine print tells you this if you're willing to dig for it:

"If you close your Account before interest is credited, you will not receive the accrued interest."

Thanks to therolf and nuonetwo for this discussion.

Further reading:

• Compound Interest - Visual Example