Sorry for the late response - my answers inline... Also, I am in the process of updating the specs online so hopefully the way interest is calculated for savings will be clearer soon! ;)
Thanks Kay -----Original Message----- From: Graeme Ruthven [mailto:[email protected]] Sent: Sunday, January 11, 2009 1:01 AM To: [email protected] Subject: Re: [Mifos-users] Questions on Savings Attributes Marie I'm not a developer, nor do I speak from a position of authority with regards to Mifos, however... > -----Original Message----- > From: Marie Valdez [mailto:[email protected]] > Sent: Thursday, 8 January 2009 20:38 > To: [email protected] > Subject: [Mifos-users] Questions on Savings Attributes > > Hi all, > > We have a couple of questions on savings. > > 1. What is the formula for computing interest when "Average Daily > Balance" is chosen as "Balance used for Interest Rate calculation"? I would hazard a guess at <sum of daily balances>/<number of days in month[1]>*<annual interest rate>/<12> [1] Or 30 if the system is configured for 12 months of 30 days each. [Kay Chau] I believe if you are calculating interest monthly, then it is the balance at the end of every day of that month, and the average of those balances is used for the interest calculation. However, in Mifos, average daily balance has not been fully tested so I do not recommend using this option. > 2. What "balance" is used for "Minimum balance required for interest > calculation"? Average or Ending balance? Exactly as stated: The minimum. If the balance falls below the minimum on any day in the month, then no interest is paid for that month. Average and ending balances are irrelevant to that rule. [Kay Chau] It would be the balance you have at the end of every time period used to calculate interest and compared to that minimum balance stated. This option isn't working right now unfortunately (issue #1542) > E.g., given: > > Time period for interest rate calculation = Monthly > > Minimum balance required for interest calculation = 500 > > Interest rate = 5% > > And below are my weekly balances: > Jan 09 = 550 > Jan 16 = 650 > Jan 23 = 550 > Jan 30 = 450 > > On Jan 31: > > A. Would Mifos calculate an interest or not? It should not, given the minimum balance rule. The balance has fallen below the minimum on one of the days you have quoted. See item 10 on the page you reference below: "Interest is not calculated on accounts that have balance amounts below this number. If left blank or "0", then system does not assume any minimum balance required for interest." If the rule should apply to average, as opposed to minimum, balance it should state that explicitly. In any event, were interest to be payable on daily balances you would need daily, rather than weekly, balances as you have given in your example in order to make the calculation. [Kay Chau] Agree with Graeme, this wouldn't calculate if the feature was working. > B. If it does, what would be the interest? > > BTW, I already checked this and did not find an answer: > > http://www.mifos.org/knowledge/functional-specs/product- > definition#attributes-for-savings-product The specifications on that page say: "Only Compound Interest Calculation is supported" (item 6). In my experience, most banks state this more carefully, something like this: "Interest is calculated daily and compounded monthly." I have no access to the user stories on Mingle, nor do I know the intentions for Mifos. Perhaps you should ask someone at the Grameen Technology Centre? Regards Graeme ------------------------------------------------------------------------ ------ Check out the new SourceForge.net Marketplace. It is the best place to buy or sell services for just about anything Open Source. http://p.sf.net/sfu/Xq1LFB _______________________________________________ Mifos-users mailing list [email protected] https://lists.sourceforge.net/lists/listinfo/mifos-users ------------------------------------------------------------------------------ Check out the new SourceForge.net Marketplace. It is the best place to buy or sell services for just about anything Open Source. http://p.sf.net/sfu/Xq1LFB _______________________________________________ Mifos-users mailing list [email protected] https://lists.sourceforge.net/lists/listinfo/mifos-users
