How to create a savings program
You can create savings programs with Fixed and Flexible strategies and enable your clients to invest their funds in these programs and earn interest.
Create a savings program as follows:
Navigate to Savings > Presets.
Click +Create in the upper-right page corner, and select:
Fixed preset — to create a program with a fixed interest rate
Flexible preset — to create a program with a flexible interest rate
Configure the following general settings:
In the Currency dropdown, select a currency for the savings program. To subscribe to the program, your clients must have wallets denominated in the program currency.
In the Name field, enter a unique name for the savings program. The program name is displayed to clients in the B2Core UI.
In the Description field, enter a program description. The program description is displayed to clients in the B2Core UI.
Set the Status option to Active or Inactive.
If Active, the card showing details of the savings program is displayed in the B2Core UI, and clients can subscribe to the program.
If Inactive, the card of the savings program isn’t displayed in the B2Core UI.
In the Admission fee field, enter a fee amount that clients must pay when subscribing to the savings program. The admission fee is deducted from client wallets denominated in the program currency.
The admission fee can be specified as an integer or decimal value.
If you don’t want to charge the admission fee, enter 0 (zero).
Proceed to configuring settings specific to the selected savings strategy:
After configuring the settings, click Save to create the savings program.
The preset of the created savings program is displayed on the Savings Preset page.
If the preset is assigned the Active status, the card of the created savings program is displayed to clients in the B2Core UI, and clients can subscribe to the program.
Configure the Flexible strategy settings
Configure settings for savings programs with flexible interest rates:
In the Flexible Preset Details section, specify the following settings:
Minimum investment amount — enter the minimum amount of the initial investment. Investments less than the specified amount won’t be accepted.
Minimum additional investment — enter the minimum amount that clients can add to the initial investment. Clients can’t add amounts less than this specified minimum.
The minimum investment and additional investment amounts can be specified as integer or decimal values.
Penalty period (days) — specify the period, in days, during which a client can’t withdraw their invested funds without a penalty.
Redeem penalty — enter the penalty amount charged to a client if the client withdraws their invested funds before the end of the penalty period.
The penalty amount an be specified as an integer or decimal value and must be less than the minimum investment amount.
Payment period — indicates the frequency of interest payments and is set to “The first day of each month” and can’t be changed.
For example, if a client successfully subscribes to a savings program on May 31, the first interest payment will occur on the next day, June 1.
In the Tiers section, set up tiers that are used to apply flexible interest rates:
Tier from — enter the minimum amount that clients must invest to get an interest rate assigned to that tier. This amount indicates the tier’s starting point and the previous tier’s end point.
There is the tier with the Tier From value equal to 0 (zero), which can’t be removed.
Annual percentage rate — enter the annual interest rate, in percentage, applied to the tier (for interest calculation details, refer to Interest calculation example — Flexible strategy)
Add as many tiers as required for your savings program. To add a new tier, click the Add button.
Interest calculation example — Flexible strategy
This example illustrates how interest is calculated for a client subscribed to a savings program with the Flexible strategy.
Suppose that the savings program is configured with the following settings:
Tier 1: the Tier from is 0 and Interest of year (%) is 10%
Tier 2: the Tier from is 5,000 and Interest of year (%) is 14.6%
the Minimum investment amount is 3,000 USD
the Minimum additional investment is 1,000 USD
If a client subscribes to the program on May 30 and deposits 3,650 USD, the client receives an annual interest rate of 10%.
At the end of May 30, the interest is accrued. It’s calculated as follows:
Earned interest = Investment amount * (Interest rate / 100) / 365
3,650 * (10 / 100) / 365 = 1 USD
If on May 31, the client adds 1,350 USD, bringing the total invested to 5,000, the client receives an annual interest rate of 14.6%.
At the end of May 31, the interest is accrued as follows:
5,000 * (14.6 / 100) / 365 = 2 USD
The total interest accrued for two days May 30 and May 31, which is 3 USD, is paid to the client wallet on June 1.
Detailed information about interest payments to the clients subscribed to savings programs can be found in payment plans that are listed on the Savings > Plans page.
Modify tiers for savings programs with Flexible strategies
In the existing savings presets, you can modify tiers that are used to apply flexible interest rates.
Modify tiers as follows:
Navigate to Savings > Presets.
Select the preset and click the Edit button.
In the Tiers section, you can:
change the amounts in the Tier from fields
adjust the interest rates applied to the tiers
remove existing tiers
add new tiers
To update tiers applied to the savings plans that have already been created based on the selected preset, enable the Update Savings Plans Tiers checkbox. The modified tiers will be used for interest calculations in all the existing savings plans.
If you want the modified tiers to apply only to new savings plans, leave the checkbox unchecked.
Click Save to apply the changes.
Configure the Fixed strategy settings
In the Fixed Preset Details section, configure the following settings:
Plan length (days) — select a period, in days, during which the amount invested in the savings program must be held.
The plan length can be specified with an interval of 30 days, such as 30, 60, 90, and so on.
At the end of the plan length, the investment amount that a client contributed to the program is refunded to the client wallet.
Payment period (days) — select a period, in days, indicating the frequency of interest payments.
The payment period can be specified with an interval of 30 days, such as 30, 60, 90, and so on, and must be less than or equal to the plan length.
Investment amount — enter an amount that a client must contribute to the savings program when subscribing to it. The investment amount is deducted from a client wallet denominated in the program currency. If a client has more than one wallet denominated in the program currency, the client can select a wallet from which the investment amount should be deducted.
The investment amount can be specified as an integer or decimal value.
Interest rate (percent) — enter a percentage of the investment amount, which is used to calculate interest earned at the end of each payment period (for details, refer to Interest calculation example — Fixed strategy.)
The interest rate can be specified as an integer or decimal value.
Cancellation penalty — enter a penalty amount charged to a client if the client wants to withdraw the funds invested in the savings program before the end of the plan length.
The cancellation penalty can be specified as an integer or decimal value and must be less than the investment amount.
If you don’t want to charge the cancellation penalty, enter 0 (zero).
Interest calculation example — Fixed strategy
This example illustrates how interest is calculated for a client subscribed to a savings program with the Fixed strategy.
Suppose that the savings program is configured with the following settings:
the Investment amount is 1,500 USD
the Interest rate (percent) is 3%
the Plan length (days) is 180 days
the Payment period (days) is 60 days
The interest accrued and paid to the client for the first 60-day period since the date the client subscribed to the program is calculated as follows:
Earned interest = Investment amount * Interest rate / 100
1,500 * 3 / 100 = 45 USD
The earned interest of 45 USD isn’t taken into account when calculating interests for subsequent periods. This means that the same interest, which is equal to 45 USD in this example, is earned and paid every 60 days till the end of the plan length.
Detailed information about interest payments to the clients subscribed to savings programs can be found in payment plans that are listed on the Savings > Plans page.