Managing Interest Rates for Deposits

Understanding Interest on Deposits

The platform allows you to track and manage interest earned on tenant deposits, with the ability to specify different interest rates and calculation rules.

Accessing Interest Rates

To view and manage interest rates:

1. Navigate to the Deposits section
2. Click on the Interest Rates button
3. View existing interest rates with their effective rates

Adding a New Interest Rate

To create a new interest rate:

1. Click the Add interest rate button in the top right corner
2. Complete the required information:
   • Name: Enter the name of the bank or financial institution
   • Type: Select the compounding method (e.g., Compounding)
   • Frequency: Choose how often interest is calculated (e.g., Daily)
   • Exclude calculating interest on the day of payment: Check this box if applicable
3. Under Rules, specify:
   • Rate (%): The interest percentage
   • Valid from: The date from which this rate applies
   • Minimum balance: The minimum deposit amount required for this rate (if applicable)
4. Click Add rule to create additional rate tiers if needed
5. Click Add interest rate to save

Calculating Interest for a Deposit

To calculate interest for a specific deposit:

1. Navigate to the deposit details page
2. Click on the Interest accrued link
3. Click Calculate interest
4. Enter the Start date and End date for the calculation period
5. Click Calculate interest
6. The system will display a detailed breakdown of interest calculations by date

Please note that interest will only be calculated if there is a linked deposit request invoice that has been paid. The system will calculate interest from either the payment date or the start date entered when calculating interest, whichever is the most recent date of those two dates.

Viewing Interest Accrual History

The Interest page for each deposit shows:

1. Reference, Property, and Tenancy information
2. Current Interest accrued and Agreed amount
3. A chronological table showing:
   • Date
   • Principal amount
   • Interest accrued (cumulative)
   • Applied Rate (%)
   • Amount (interest earned on that date)