Account Interest Details

Account Interest Details

Purpose

To establish and maintain the Interest posting date, frequency and method for each account when the Post Interest on Accounts process is run

Timing

Interest Details should be set up when the account is opened

Changes can be made at any time, but should be undertaken with care

Access

  1. Accounts Details | 

Dialog Details

Lease, Call Savings, Deposit, Unit Fund

Variable Loan, Fixed Loan

Details Specific Fields

Field
Explanation
Next Interest Date
The first/next date that interest will be charged/credited

This date will automatically update to the next interest date based on the Frequency and Day setting below
Frequency
Determines how often interest will be posted, and is used to generate the Next Interest Date
Day
Only relevant if the Frequency is Monthly or Quarterly

Should be entered as 31 if interest postings are always on the final day of the month

Alternatively, if interest is to be fixed to a month end date such as 28, 29 or 30, then that date should be entered
Interest Action
Determines the rules for posting Interest

Options are:
  1. Reinvest - Interest will be posted back to the account (compounding effect)
  2. Trf Account - Interest will be posted to the account nominated in the Transfer Account field

    Note:     Where the Call Savings account is nominated as a transaction account for a Variable Loan, a check will be performed that a debit interest posting will not cause the Call Savings account to become overdrawn. Where the Call Account would be overdrawn, the interest will be transferred to the current ledger of the Variable Loan account
Investment Modules Only
  1. Direct Credit - Interest will be paid by Direct Credit to the bank account nominated in the Direct Credit Account field
  2. Cheque - Interest will be posted, awaiting processing of the cheque payment
Transfer Account
Available when the Interest Action is 'Trf Account'

[F2] to  the account
Direct Credit AccountAvailable when the Interest Action is 'Direct Credit'

Enter the bank account number Interest will be paid to
DC ReferenceAvailable when the Interest Action is 'Direct Credit'

Enter the bank reference that should appear on the client bank statement
Default -Next Check
Display Only Field
Default - Last Posted
Display Only Field
Interest Charged
Display Only Field

Shows the total amount of Interest Charged
Interest Paid
Display Only Field

Shows the total amount of Interest Paid (credited to the account)
Accrued Date
Display Only Field

Shows the date that the Accrued Interest amount on the Account Details has accrued from

This will be the last transaction date
Accrued Amount
Display Only Field

Shows the amount of interest that has accrued on the account

This amount will usually be the same as the Interest Charged or Interest Paid amount
Interest Profile
Displays the Code and Description of the Interest Profile being applied tot he account
Interest Rate
Displays the Interest Rate that is being applied as of the last transaction date on the account



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