Deposited large check in Capital One a week ago, still not earning interest

On the 21st I deposited a large check I wrote from my Northern Bank account into my C1 360 MMA to get the $450 bonus. I see the amount was deducted from my Northern balance on the 22nd. As of today that amount hasn’t been credited to my Capital One account and won’t be available until the 28th. I don’t care about the availability but thought it earns interest as soon as it’s deposited or at least when the funds are removed from the other account. Looks like I’m losing about $20 interest because of this. Don’t checks earn interest as soon as they are deposited or at least after they clear which is the next day?

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Interesting question. What would happen, if for instance, you weren’t monitoring the depository account and the check was never credited thereto? Your money was taken from you before it was ever deposited: issue 1; and then those funds may never be credited if the financial instrument was lost in transit, never negotiated, or credited incorrectly: issue 2. I’ve asked several of my banks and they have no idea how the process works let alone a reasonable answer. They blame it on the Fed or the bill pay vendor (which no one will name and seems to process (comingle?) funds through Northern Trust).

Absent force majeure, checks clear in one business day or overnight regardless of the amount, yet many financial institutions place arbitrary holds on deposited funds. In your case, this deprives you the use of your money and the interest it should earn. Where did that interest go? Who booked it? Who paid taxes on it?

There’s no technical reason for weekend and holiday delays in crediting deposited funds. Once a check is scanned, processing is automated. Rare exceptions are spit out for manual intervention. Mismatches between the written amount and numerical amount are the most common error by far which is why that obsolete nonsense should be abandoned. Who writes out amounts in words other than for checks? Grammar hammers have whimsical rules for numbers, but they, too, make no sense.

I’m sorry I do not understand this.

I would expect the funds to be credited to your Capital One account, with delayed withdrawal availability, and with the available withdrawal date determined by the crediting date.

I do not understand how they can provide you an allowed withdrawal date for funds they (in essence) are claiming never were deposited in the first place.

Perhaps Capital One has a different system. Maybe they do not admit to possessing the funds until those same funds are actually available for withdrawal. If that’s what they’re up to, it’s not an approach I’ve encountered prior . . . . and I do not like it.

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It does say it was deposited on the 21st. It shows the deposit as “processing” to be available May 28. I’ll have to call and ask when a deposit starts earning interest. Usually the website shows your total balance next to your available balance. They seem to change the website every 6 months.

OK, fine. That is normal and everything makes sense now.

I agree regarding your need to inquire about payment of interest on funds unavailable for withdrawal. I would expect the funds to be garnering interest, but absent inquiry there is no way to know for certain.

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Isn’t your CapOne account brand new? When you opened the account, you agreed to deposit limits, funds availability, etc. I don’t understand why this is so difficult and there’s always a question on it (here, DOC, etc).

There are risk departments for a reason. Those risk folks determine how much risk they want to take. That’s just business.

No. It’s been open a few years.

I guess I’m misunderstanding then. You mentioned a $450 bonus, and bonuses are usually for new accounts. Regardless, you agreed to deposit hold and availability limits when you opened the account. So if the funds aren’t available, why would they earn interest?

Bonus for adding money into the account from an outside source. Other bank accounts I have like Pure Point earn interest as soon as you make the deposit.

Interest is always paid on the actual balance. Available balance may be lower due to holds (risk mitigation, as you mentioned before), but the money is in the account and should earn interest.


I agree with this statement rather strongly. But were it only so.

I had one instance where a FI (financial institution) delayed paying interest on funds which arrived, not by check, but by ACH!!!

They were sneaky about it, too, and did not own up to their chicanery until I confronted them after running a check on my accrued interest. I ceased doing business with that FI, by the way.

This is why I supported, above, the inclination of the OP to make inquiry.

Checked my account and it shows the daily balance now reflecting the deposit on the day it was made, 5/21, so interest would start accruing then as well.

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Banks are required to accrue interest based on the date the funds are credited to the bank, even if a longer hold applies (it’s possible the bank is credited with the funds on a particular day for a specific deposit but doesn’t actually accrue for another day or two because of some allowances provided to the bank - I’m not sure of the specifics of these rules, but it isn’t related to funds availability). The funds should be credited within a couple business days of the date of deposit. But as a general rule, many banks will accrue interest beginning on the date of deposit.

For my own reference, not that I disbelieve anyone, does anyone have a link to this official rule? I’ve never heard of it and I’d like to take a look at it, and read it in full.


I can send it tomorrow afternoon once I get to the office, unless someone else knows it or can find it.

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Details on this please. Cap 1 is known for only 1 bonus lifetime for checking and 1 for savings/mm. Had you received a bonus when you opened the money market account?

EDIT: found it
no mention of excluding people that previously got a bonus. sadly it is expired now though.


Yes that’s it but I’m concerned about the line, This bonus offer is meant only for the original recipient. Please don’t share it. I wasn’t an original recipient and found the offer on that link. Will that prevent getting the bonus?

Two years ago I got an account opening bonus from Capital One when it was supposedly targeted to a geographical area and I didn’t live in that area. So unless they’ve changed things, you’ve got a decent chance.

Yea, It says, Please Don’t Share It. It doesn’t say, Offer only good for original recipient. I kept a copy of the offer just in case.