Ideas for the Mambu Banking Engine

Accrue interest on positive deposit balances every 15 days/half month (French ’intérêts par quinzaine’ method)

What

Accrue interest every 15 days/half month (1st to 15th, and 16th to End Of Month, i.e. 28th, 29th, 30th, or 31st), called the French ‘quinzaine’ process.

The application frequency could be at a different interval, however, and this request concerns accrual frequency only, not application.

For example, with an interest rate of 1.5% per year of 365 days, and interest applied every year (on the 1st of January):

  • 10.10.18 deposit of $5000 made
  • Accrual 16.10 to 31.10: 5000*(1.5%/365)*16 = $3.29
  • 12.11.18 deposit of $10000 made
  • Accrual 01.11 to 15.11: 5000*(1.5%/365)*15 = $3.08
  • Accrual 16.11 to 30.11: (5000+10000)*(1.5%/365)*15 = $9.25
  • 26.12.18 withdrawal of $3000
  • Accrual 01.12 to 15.12: 15000*(1.5%/365)*15 = $9.25
  • Accrual 16.12 to 31.12: (15000-3000)*(1.5%/365)*16 = $7.89
  • Interest applied on 01.01.19. New balance = 12000 + 3.29 + 3.08 + 9.25 + 9.25 + 7.89 = $12032.76
  • No activity in January
  • Accrual 01.01 to 15.01: 12032.76*(1.5%/365)*15 = $7.42
  • Accrual 16.01 to 31.01: 12032.76*(1.5%/365)*15 = $7.91

Why

This is a common banking practice in France, and followed by many organisations there.

Links (in French):

https://www.service-public.fr/particuliers/vosdroits/F34394

https://www.cbanque.com/placement/livret.php#plSHmctViZlbIh2G.99 (Here there is mention of a year split into 24 x 2 weeks, as well as the scenario described above, namely 1st to 15th of every month, and then 16th to end of the month).

  • James Anderson
  • Nov 9 2018
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