Interest Compensation

Product Group which is a beneficiary of the Bundle.

Property which would act as a beneficiary in the Bundle.

Maximum percentage of recipient balance that can be offset by donation.

Donor Product Group that contributes to Bundle.

Property under the given Product Group that contributes to Bundle. More than one property can be attached

Allows the user to specify the balance that contribute to the calculation. Example: Debit balance or Credit balance.

Specify the Balance Type for interest calculation. A valid record in AA.SOURCE.CALC.TYPE. Example: CURBALANCE

Accrual calculation of donors can be Suppress or Calculate or Information only.

The Balance Netting Pool Structureoffering can be in different flavors.

• Multi-Currency Credit Facility - Shared Limit with Allow Netting enabled and all the CT Accounts are connected to this Limit
• Single Currency Credit Facility - Single Limit for each CT Account
• Single Currency Facility - No Credit Facility

Consequently, it leads to different ways in which the financial institution calculates interest.

• All Interest at MA level (all interest calculated at MA level and posted to the CT nominated as the recipient of the Bundle Interest Compensation)
• Penalty Interest alone at MA level (Penalty Interest calculated at MA level using Interest Compensation and all other interest calculated and posted at individual CT Account level)
• No Interest at MA Level (all interest calculated and posted at individual CT Account level)

This can be setup as three different variations of Interest Compensation condition. If the choice of variation is a user selection at the Bundle Arrangement level, then the Eligibility rules pertaining to each of these variations could be defined namesake.

At the Product Designer level, the Default Variation can be set as ‘Not Available’ indicating that it is available as only one of these three variations.