Interest Rate Changes

Interest bearing accounts in some situations may have interest rates change during the life of the account.

To deal with this situation, one creates a transaction types that posts -100% of accrued interest, and runs that transaction in a plan that also edits the 'Calculate Interest From Date' to today and the 'Interest Rate' field.

Changes Periodically

To create a plan for rates that change periodically or every year, create a contact plan with the following events.

1. A Transaction event that calls a transaction type that posts -100% of accrued interest.

2. An Edit event that sets the Annual Interest Rate to the new rate.

The Description field for this Edit type event would read @id.air = 7.65 if your interest rate is 7.65 percent. Change the number as needed.

3. An Edit event that sets the 'Calculate Interest From Date' to today.

The Description field for this Edit type event would read @id.cifd = @d.

Changes Historically

If you are entering a new account which had variable interest over its history, you simply post an amount for all interest up to the date of listing. Then you start interest calculations at your desired rate starting on the date of listing.

See Also

- Reset Interest Basics
- Reset Interest
- Transaction Type Sample - Total Accrued Interest