In this section, you must define an interest calculation method and interest period range.
Day count convention*
List
Select the interest calculation method. The method is the basis for calculating the interest earned on the deposit.
The possible values are:
30/360 - To get the monthly interest rate, divide the annual interest rate by 360 and multiply it by 30. (By assuming that there are 360 days in a year with 30 days in each month.)
30/365 - To get the monthly interest rate, divide the interest rate by 365 and multiply by 30. (By assuming that there are 365 days in a year with 30 days in each month.)
ACT/360 - To get the monthly interest rate, divide the interest rate by 360 and multiply it by the actual number of days in a month. (By assuming that there are 360 days in a year.)
ACT/365 - To get the monthly interest rate, divide the interest rate by 365 and multiply it by the actual number of days in a month.
See the table below for the difference in the interest earned for the day count conventions.
Period selector*
List
Select the interest condition applied to the single period or repeating period range.
The possible values are:
Fixed period - This means that the interest conditions are applied for a fixed period of time. For example, 6 months or 5 years.
Periods in range - This means that you can define a range of period and set the interest conditions for the particular range. For example, the range of 1 to 6 months has an interest rate of 0.25%. If the customer chooses to create a contract for 5 months, this condition is applied to the deposit contract.
Below you will see a screenshot of the interest main settings section:
The following table shows the total amount earned for a year:
Deposit A
1000
30/360
3%
30.00
Deposit B
1000
30/365
3%
29.59
Deposit C
1000
ACT/360
3%
30.42
Deposit D
1000
ACT/365
3%
30.00
