Moving money: Getting interest from both institutions?
Recently I moved some money. I realized that some destination institutions credit your account from the moment you start the transfer. But the originating account has to pay you until the money leaves. So if you did this over a weekend or holiday, you might get a few days of double interest. Wondering if many people are aware of this? Of course with current interest rates being so low its not going to amount to much, but its an interesting principle nevertheless. This is the advantage of using the destination institution for moving the money if they credit you on the initiation day, not the arrival of funds day. Otherwise they won't credit you the money because they obviously don't know its coming. I wonder if people try this with larger amounts that might be leveraged. I think there is a term for this and its illegal though in the markets. Can't remember the term. Double dipping interest?