We have customers that w/d at an ATM or do an internet transfer from their savings that zero's it out and it closes. When the customer does it this way, the acct closes w/out paying the accrued int to date.

Is this something we can get in trouble for from a compliance standpoint?

I would imagine this depends on your account agreement. Ours states that "If the account is closed before interest is credited, you will not receive the accrued interest."

Our disclosure states If you close your account before interest is credited, you will receive the accrued interest.

We use the daily balance method to calculate the interest on your account. This method applies a daily periodic rate to the principal in the account each day.

So, does this mean we will have to calculate the interest that would have accrued and send them a check for the amount that would have been added to the account had they came into the bank to close the account?

I'll stand corrected by one of the gurus, but I'm presuming you have to abide by your account agreement and send them a check.

I agree, but then I would be changing that policy to not pay accrued interest.