Deposit Screens > Account Information Screen Group > Interest Fields Screen

Field

Description

Interest Method

Mnemonic: DMINMT

Use this field to indicate the method the system uses to calculate interest on the account. See below for more information.

Possible selections in this field are:

01 - 365/365 Base Simple Interest

02 - 365/360 Base Simple Interest

03 - 365/364 Base Simple Interest

04 - 360/360 Base Simple Interest

11 - 365/365 Base Compound Interest

12 - 365/360 Base Compound Interest

13 - 365/364 Base Compound Interest

14 - 360/360 Base Compound Interest

21 - 365/365 Base Continuous Compound Interest*

22 - 365/360 Base Continuous Compound Interest*

23 - 365/364 Base Continuous Compound Interest*

24 - 360/360 Base Continuous Compound Interest*

Interest methods using a 365-day base will automatically calculate for 366 days during a leap year. This pertains to any part of a leap year included in the interest calculation.

This information is usually entered when the account is opened. However, if you have proper security clearance, you can change this field.

* Continuous Compound Interest

When continuous compound interest is used, the system uses the following formula.

Where:

A = Amount to be compounded (account balance)

R = Interest rate being compounded

T = Time in years for which compounding occurs

e = The exponential number (approx. 2.718281828)

I = Amount of interest

For example, continuous compound interest for $1,000.00 at 3% for 1 year is

when calculated on a calculator. The system uses the series

expoweronexover1

The system carries out this series until accurate to six decimal places.

Interest Frequency

Mnemonic: DMINFQ

Use this field to indicate how often the system will post earned interest that has been earned on this account. See below for more information.

Interest Destination

Mnemonic: DMIDST

Use this field to indicate how the earned interest will be paid to the account owner. See below for more information.

Interest is always posted to the account balance and then withdrawn when this field indicates a transfer to another account. The Interest Frequency field above indicates when interest earnings are posted. Possible selections in this field are:

Interest Destination	Description
00 - Post Interest to the Account	If this option is selected, interest will post directly to the account balance when interest posts (see Interest Frequency above). See the Current Balance field on the Deposits > Account Information > Account Information screen.
01 - Pay interest By Check	If this option is selected, interest will post via a check to the account owner. Once an interest payment is posted via check, the actual check can be printed through the Deposits > Check Printing > Deposit Checks screen. If your institution uses Check Reconciliation, the check details will be recorded there as well. The system will use the account owner's name and address in the CIF system to set up a Customer Directed Transfer record and create a check for the customer automatically. If the check should be sent to an address other than the account owner's primary mailing address in the CIF system, an Alternative Address needs to be designated on the Addresses tab of the Households screen in CIF.
02 - Transfer Interest By CDT	If this option is selected, the system will transfer any interest earned through a customer directed transfer on the Deposits > Account Information > Customer Directed Transfers > Customer Directed Transfers screen. A Customer Directed Transfer record must be set up before this option is used. You should set the Interest Destination on that screen to "02 - Transfer Interest by CDT," set Distribution Type to "I - Interest," and set Distribution Method to "ACH - Automated Clearing House " or "XFR - In-House Transfer." When transferring interest, the value of "I - Interest" in the Distribution Type field tells the system to check for the customer account's amount of interest and use that amount in the transfer. It is therefore not necessary to enter a transfer amount with an interest transfer.
11 - At Maturity Post to Account, Otherwise by Check	Use this option if this is an interest account where earnings should post both at maturity and regularly according to the Interest Frequency field above. An example of this type of an account would be certain certificate accounts. For example, your institution may offer certificate interest accounts where interest earnings are posted quarterly, and then again when the account matures after five years. If you select this destination method, the interest earnings will post by check to the account owner according to the Interest Frequency above. At maturity, any interest earnings will be posted to the account's Current Balance.
12 - At Maturity Post to Account, Otherwise by CDT	Similar to 11 above, select this option if the account owner wants interest earnings posted to a Customer Directed Transfer. Then at maturity, the system will post the interest earnings to their account balance.

	Note: See also the Withholding Information tab if interest postings qualify for tax withholdings.

Interest Balance Code

Mnemonic: DMINBC

Use this field to indicate which balance to use when calculating payment interest on the customer account. See below for more information.

Interest Fields tab

Interest Fields tab