Interest Configuration is used to apply interest to balances on stored value accounts, which is similar to how interest is calculated to balances on regular bank accounts. Interest is calculated for each SVA based on the balance at the end of every calculation period. Various interest schemes can be configured and grouped into products; products can be mapped to an SVA based on the organizational unit, customer type, and payment instrument type.
The interest amount is calculated for each SVA based on the balance tracking method. The interest calculated is taken from the interest balance snapshots, which uses the calculation method and scales configured in the interest product. For each calculation, two transactions are created that moves money between the clearing accounts in preparation for the clearing of the interest. Therefore, interest calculations are cleared by triggering the transaction to move the interest from the clearing accounts to the customer's SVA.
In case an SVA was created during an interest calculation period and has an applicable interest product, its balance snapshots are created for the complete calculation period. For example, if the calculation period is one month and a new SVA is created on the 15th of the month, entries for the new SVA are created from the 1st of the month up to the current snapshot date. Therefore, 14 entries with a balance of zero are created and one entry with the balance is created.