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It seems any change in any of your balances triggers the interest payment

Do you recieve interest if sbd are held at bittrex? Why not. Seems like you should. Merchants would likely like to hold sbd somewhere they could easily cash out.

That's a question you need to ask bittrex. I personally never hold funds on an exchange for longer than absolutely necessary (except for a decentralized exchange, of course)

Thanks for the reply but bittrex was an example. Will I recieve interest at a non Steem walket? Seems like I should?

Technically, the blockchain cannot know the SBD belong to you, that's why you would need to find an agreement with bittrex .. or not leave your SBD there

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