They will continue to spawn and despawn throughout the day too, they are the most unreliable mob to try to contain in a tank. Edit: you don't actually need a large water area for them to spawn, I have seen them spawn in town fountains quite often.
I was thinking of an ink sack / squid farm and didn't want to wast time building a tank. I think I'll give it a try. Thanks all.
This explains why I have a fair few squid wandering around in my moat uninvited. Make sure you've got water first folks or they'll go to the nearest source!