Interest Calculation Period
The interest calculation period is used to define whether the last day of the previous settlement period or the last day of the current settlement period is to be included in the interest calculation.
You define the interest calculation period in Customizing for the account product under
Account Management (FS-AM)
Product Management
Product Definition
Account Products
Create Account Product
under the feature attribute
Settlement
Time Period
Interest Calculation Period
or the feature attribute
Extended Settlement
General Settlement Indicators
Interest Calculation Period.
inclusive / exclusive
exclusive / inclusive
NoteThe account opening date is always
inclusive
irrespective of the defined interest calculation period. The account closure date is alwaysexclusive
irrespective of the defined interest calculation period.End of the note.
Interest Calculation Period - Inclusive / Exclusive
The last day of the previous settlement period is included . It is included in the interest calculation. The last day of the current settlement period is excluded . It is not included in the interest calculation.
Start of interest calculation
The account was not settled yet.
The interest calculation starts from the day that the account was opened. If payment items exist that have a value date before this date, then the interest calculation starts from the earliest value date.
The account was settled already.
The interest calculation starts from the last settlement date of the previous settlement period.
End of interest calculation
The interest calculation ends on the penultimate day of the settlement period. The last day of the settlement period is settled in the following settlement period.
Example
The following examples show the inclusive/exclusive interest calculation period. Settlement is executed annually. The interest calculation method that is used is
actual
(365 interest days).
Settlement of account opened in previous year
Settlement period: 12/31/03 – 12/31/04
Interest is calculated for the value date-based balances from 31.12.03 – 30.12.04
Value date 12/31/04
Settlement of account opened in current year
Account opened: 04/15/03
Account closed: 12/16/03
Settlement period: 15.04.03 – 16.12.03
Interest is calculated for the value date-based balances from 04/15/03 – 12/15/03
The balance for 12/16/03 is not included in the calculation.
Value date 16.12.03
Interest Calculation Period - Exclusive / Inclusive
This interest rate variant is used by many German banks for savings interest calculation. The last day of the previous settlement period is excluded . It is not included in the interest calculation. The last day of the current settlement period is included . It is included in the interest calculation.
Start of interest calculation
The account was not settled yet.
The interest calculation starts from the day that the account was opened. If payment items exist that have a value date before this date, then the interest calculation starts from the earliest value date.
The account was settled already.
The interest calculation starts from the day after the last settlement date of the previous settlement period.
End of interest calculation
The interest calculation ends on the last day of the settlement period. If settlement is executed as part of account closure, the interest calculation ends on the day before the account closure.
Example
The following examples show the exclusive/inclusive interest calculation period. Settlement is executed annually. The interest calculation method that is used is
actual
(365 interest days).
Settlement of account opened in previous year
Settlement period: 12/31/03 – 12/31/04
Interest is calculated for the value date-based balances from 01.01.04 – 31.12.04
Value date 01/01/05
Settlement of account opened in current year
Account opened: 04/15/03
Account closed: 12/16/03
Settlement period: 15.04.03 – 16.12.03
Interest is calculated for the value date-based balances from 04/15/03 – 12/15/03
The balance for 12/16/03 is not included in the calculation.
Value date 16.12.03
