How to Enter Interest Portion for a Beneficiary

Ability to enter interest portion for a Beneficiary for Organizations.

In some scenarios, Organizations want to be able to create a subaccount and add a portion of their rate they want to be paid to the Beneficiary. This is now available as a part of the subaccount creation process or can be added for existing subaccounts.

The FI has negotiated a rate with the Organization. From there, the Organization wants to pay a portion of their earned interest to the Beneficiary. The beneficiary is effectively receiving a split of the Organizations interest. 

Note: Any changes applied to interest rates or splits revert to the first date of the interest cycle.

How to Enable this feature: The FI should email [e-mail] with the following information:

• Which organizations would like to have this feature
• How the organization/beneficiary split should be applied to the organization
• Request “Allow Interest Split overrides” to be enabled

Once the organization has the Split Override set to “yes” as explained above they can enter an interest percentage for the subaccounts in two scenarios.

1. Adding Interest at Subaccount Creation

When you create a new subaccount, clicking “Continue” on the first screen will display a modal that asks you if you would want to set up an interest split override. Select “Yes” if you wish to enter a value that is different than the default interest earned by the subaccount.

In the above example, the subaccount will earn the default interest rate of 2.5% which is 50% of the total earned by the organization (Total APR 5%). This amount can be changed to any percentage of the total APR depending on the interest rate you would like this subaccount to earn.

Once you have entered the amount hit “Continue” for the value to be saved and then move to the next steps as usual to finish setting up your subaccount.

1. Add/Edit Interest on Existing Subaccounts.

Open any existing subaccount within the organization that has the interest split override enabled in the configuration.

Clicking on the “Edit Interest Split” button as highlighted above will give you the option to change the split or remove it as the case maybe.

You can either update the amount and hit “submit” to save your changes or you can click the option to remove the split and let it use the default organization configuration in that case.

As shown below, the override was updated to 60% which resulted in the subaccount now earning an APR of 3%.

Removing an override

Click on “Edit Interest Split” on the subaccount dashboard, then select “Remove override.”

This returns the interest rate to the organization’s original configuration of 2.5%.