How is Interest Calculated
Interest is calculated using a daily accrual method and posted monthly based on the interest rate set by your financial institution.
Not seeing interest due to a low rate?
1) Consider increasing the rate on all property management accounts so that it is high enough to ensure something posts each month (somewhere between 5 and 10 basis points); or
2) Potentially changing the interest posting time period to be annual instead of monthly (this would be a system wide change. Please consider any far-reaching implications before making this change); or
3) Change the default interest rate calculations for the property management vertical to be tier-based. So, for example:
Balances >= $500 would earn 0.01%
Balances < $500 would earn 0.10%
Where can I view interest payments?
You can view interest transactions in the Transactions section of the subaccount page. The memo for the transaction will include “Interest” in the title. You can also see the current Accrued Interest and Posted Interest in the Overview section of the subaccount page. Interest will also be visible on your monthly or quarterly account statements.
Note: For IOLTA accounts, interest will be handled in a different manner according to the requirements set by your state.
When will monthly interest be paid and posted?
Interest will post to each subaccount on either the last business day of the month or the first business day of the following month, depending on your financial institution.
Where can I see the interest rate on my accounts?
The Annual Percentage Yield (APY) can be located within the “Details” section of each subaccount.
Mid-cycle Interest Rate Changes
This feature will allow multiple interest rates to be used while calculating interest for a given cycle.
ZSuite Staff continues to manage the interest rate updates/changes within the platform. ZSuite configures interest rates using the Config Settings by providing an Effective date and the APR to be used.
Go to “Settings” on the left navigation menu and then pick the configuration you want to view.
You will find the interest rates and their effective dates under “Interest Information” as shown here:
FIs would have to contact clientsupport@zsuitetech.com with the following information so the interest rates can be configured as needed:
- APR – Interest Rate
- Effective Date – The date that the above interest rate should be applied for interest calculations.
Related Articles:
Diagram: How interest is calculated
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