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Interest Configuration

Interest Configuration is used to apply interest to balances on stored value accounts (SVAs), which is similar to how interest is calculated for regular bank accounts. Interest is calculated for each SVA, based on the balance at the end of a calculation period. You can configure various interest schemes, and group them into products; products can be mapped to an SVA, based on the organizational unit, customer type, and payment instrument type.

Interest is calculated for SVAs based on the balance-tracking method. The interest is calculated on interest-balance snapshots, which use the calculation method and scales that are configured in the interest product. For each calculation, two transactions are created that move money between the clearing accounts, in preparation for the clearing of the interest. Therefore, interest calculations are cleared by triggering the transaction to move the interest from the clearing accounts to the customer's SVA.

If an SVA is created during an interest-calculation period, and it has an applicable interest product, its balance snapshots are created for the complete calculation period. For example, if the calculation period is one month, and a new SVA is created on the 15th of the month, entries for the new SVA are created from the 1st of the month up to the current snapshot date. Therefore, 14 entries with a balance of zero are created, and 1 entry with the current balance is created.