The method of calculating interest is determined by the Account Type.
Interest is calculated in arrears based on the daily balance of the loan and updated as specified, e.g. Weekly, Fortnightly, Day of Month, End of Month, Quarterly, Half Yearly and Yearly.
Default Interest is defined on the Account Type. It may be set to "None" to completely disable the feature for Accounts of this type.
Interest can be fixed or a Rate Table used; only one rate can be charged during the Interest period of the Account.
Minimum payments are calculated with the generation of the statements and the Payment Schedule is updated accordingly. Direct Debits (a separate Add-On) can then be processed from this Schedule.
Floating Rate Accounts allow the Interest Rate to be changed over the term of the Account. This can be changed on an individual Account or to all Accounts of an Account Type.
When the Interest Rate is changed the repayment or the maturity date (if the payment remains the same) can be amended to cater for the change.