Page Comparison

Interest Rate – The yearly rate at which interest shal shall be applied. (In mifos Mifos a year can be defined as 365 days or 360days in Accounting Rules configuration)

Interest Calculation Period – every 1 month on the end of the month with dates starting from start of financial year (always 1 Jan in mifosMifos)

Interest Posting – every 3 months on the end of the month with dates starting from start of financial year (always 1 Jan in mifosMifos)

Minimum Balance (for interest Calculation) – if the Average or Minimum Balance Principal for a given calculation period is greater or equal to Minimum Balance required then interest calculation is applicable.

When an account goes active (for the first time) serveral several things happen.

• account activtion activation date is set.
• The next interest calculation date is determined - in this case as interest calculation occurs every 1 months on end of month, the valid set of interest calculation dates are highlight in the table below.
• The next interest posting date is determined - in this case, occurs every 3 months on end of month, the valid set of interest posting dates highlighted below beside the possible interest calculation dates
• It is only through interest posting that interest is actually compounded on the account.
• Schedules are generated with mandatory/recommened recommend amounts to track payments by group/individual clients.