Configure the Fixed strategy settings

To configure settings for savings programs with fixed interest rates, specify the following settings in the Fixed Preset Details section:

• 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.

• Penalty type — select how the penalty is calculated. The penalty amount is charged to a client if the client withdraws their invested funds before the end of the plan length.

  • Fixed — a fixed amount is deducted as a penalty.

  • Percentage — a percentage of the invested funds is deducted as a penalty.

• Cancellation penalty — specify as follows:

  • For the Fixed penalty type, specifies the exact penalty amount charged to a client. The amount must be an integer or decimal value and must be lower than the investment amount.

  • For the Percentage penalty type, specifies the percentage of the investment amount deducted as a penalty.

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.