Verify for monthly savings deposits, interest is posted at the end of the month and for AVERAGE interest calculation the AVERAGE savings amount of the calendar month is used for the interest calculation.

Test Steps

1. create savings product with average interest savings product
2. create account, make deposits over 2-3 periods.
3. manually calculate average of the daily balances over that period.
4. move system forward, run batch job to calculate and post savings interest.

Expected Result

Confirm interest posted matches the manual calculation using this formula and the average daily balance:

FormulaFor one period interest calculation: A = P(1+r/n)

Where:

P = principal amount (initial amount)

r = annual rate of interest (as a decimal)

A = amount of money accumulated including interest

n = number of times the interest is compounded per year

Periodic intervals: can be set by number of days or months

Assignee

Lukasz Chudy

Reporter

Anonymous

Test Prerequisite

a savings product that does average interest calculation

Test Data

Standard test DB

Automation

Automated

Result

None

Test Level

None

Components

Priority

Major
Configure