Applying floating interest

Before creating the account type interest method with the floating interest rate, make sure you have created the base rate you will use for this method and added a fixed value to it.

Learn more about managing base rates with our Base interest rate guide.

Follow the steps described below to set up the account type interest method with floating interest.

1. Go to Accounts > Pricing > Account type interest.

2. Click the Create account type interest method button.

3. Fill in the details for the:

   • Interest main settings,

   • Interest conditions.

4. Click the Create new account type interest button.

In the interest main settings you have the option to choose between two methods for determining the effective interest rate:

1. Forming the applied interest rate as a percentage of the base rate;

2. Forming the applied interest rate as a constant difference from the base rate.

You can find examples explaining each of these options below.

As a percentage of the base rate

As a difference from the base rate