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Introduction
When creating a SavingsProduct Savings Products, the user can define how interest calucation and posting posting (or compounding) and calculation will happen.
Mifos out-of-the-box currently supports two types of interest calculation; Average Balance and Minimum Balance.
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For interest posting, only Months are supported.
Interest Posting
When a savings product is created, the user defines the frequency of interest posting of which only Monthly is supported in Mifos. Once at least one savings is open for a given savings product, a number of attributes of a savings product cannot be changed. The interest posting frequency and interest calculation frequency are two of this such attributes.
Interest posting is possible in Mifos from:
- An Overnight batch job named SavingsIntPostingTask that detects savings accounts that are due for interest posting
- When a savings account is closed and interest is due based on balance of savings account at closing.
Interest is only calculated and posted for the last valid interest posting period for a given savings account. As a result this means the following is also enforced:
- No adjustments of deposits or withdrawals are allowed if the transaction exists in a previous interest posting period. To help enforce this we post interest even if the calculated interest is zero as this will result in the user being unable to adjust transactions prior to the interest posting.
- No back-dated transactions are allowed if the transaction exists in a previous interest posting period
Interest Calculation Period
At present interest calculation is carried out by an overnight batch job (SavingsIntCalcTask). It determines when to run based on the next interest calculation date value stored in savings_account -> next_int_calc_date datable table/column.
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Fri Jan-01 to Fri Jan 29
Sat Jan-30 to Fri Feb 26
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Interest Posting
Interest posting always occurs on a monthly basis on the last day of the month.
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