Configure the Flexible strategy settings
To configure settings for savings programs with flexible interest rates, specify the following settings in the Flexible Preset Details section:
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 cannot 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.
To modify tiers:
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.
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