Change to Savings Product Interest Rate

I would appreciate some guidance on how to promulgate changes to the interest rate on a regular savings account, to both new customers and existing customers.

What appears to happen in our testing is that when the interest rate is changed at the product level, the change does not get passed through to existing customers.

Our current product config is for interest calculated daily, and posted monthly.

Hi @barranjoey

Changes made to the interest components at the product level will not have any impact on already created savings accounts.
Currently, there is no option to change those parameters to the existing saving accounts. any changes you make at the product level will have an impact only on newly created accounts.
you can try changing the parameters (i.e. change the compounding period, the interest rate, the interest calculation basis etc.) at the Account level, However, we recommend you test the scenarios on couple of accounts first to see if it meets your requirement before doing it for all loans.

Example Query to change only the interest rate at account level(you should execute this on the connected Database)
SELECT * FROM alphabank-default.m_savings_account;
UPDATE alphabank-default.m_savings_account SET nominal_annual_interest_rate=‘NEW_VALUE’ WHERE id>=1;

You can get in touch with me on skype if you need any assistance on SQL scripting

Skype: live:cbharath4

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Many thanks @bharath. We will test this and revert to confirm the result.

Hi @bharath,

This worked. Direct update to the database is not ideal given that we don’t have an audit trail, but at least we have a solution if we put the right controls around it.

Many thanks!

Thanks for you pointer on making changes to Fineract interest rate table @bharath.

We made the change at the database level in our test environment, however the business outcome was not what we were hoping for. The outcome saw the interest rate changed with effect of the date of activation of the account, not the date of the change to the interest rate, thus resulting in backdating of interest posting.

Our business requirement is for the interest rate on the product to change periodically, with all clients in the product impacted by an interest rate change, from a future start date or from the date of the change in Fineract, with any prior period interest postings and any earned but not posted interest calculations not impacted.

Are you aware of another way to achieve this outcome without a change to the source code?

One option we were going to test this week, was use of the Recurring Deposit Product, which appears to have greater functionality for interest rate changes when compared to a Savings Account.

I would appreciate your advice.

Regards

Hi,
I understand your request.
Mifos, currently do not have the feature of changing interest rate from a particular date for savings, Rd and FD.

Thanks @bharath,

Do you know of any users that have leveraged the floating rate functionality for loans, modified the source code, and applied that to savings?