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
The account opening date is always inclusive irrespective of the defined interest calculation period. The account closure date is always exclusive irrespective of the defined interest calculation period.
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 12/31/03 – 12/30/04
· Value date 12/31/04
Settlement of account opened in current year
· Account opened: 04/15/03
· Account closed: 12/16/03
· Settlement period: 04/15/03 – 12/16/03
· 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 - Inclusive / Exclusive
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 – 12/31/04
· Value date 01/01/05
Settlement of account opened in current year
· Account opened: 04/15/03
· Account closed: 12/16/03
· Settlement period: 04/15/03 – 12/16/03
· 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
