Interest Pooling overview

Interest Pooling calculates and distributes interest for eligible bank accounts that share a bank, currency and commercial arrangement.

Interest pool

A pool belongs to one office, bank and currency and can be limited to selected branches. It includes a management account plus the profiles used for calculation. More than one pool can exist for the same bank and currency when arrangements differ.

Account assignments

Eligible bank accounts are assigned from a chosen effective date. Flinq keeps current, historical and future-dated assignment history so each date uses the correct pool. An account cannot participate in two pools on the same date.

Profiles and periods

• Interest profile: determines gross interest using the bank rate, tiering method and day-count convention.

• Payout profile: applies the cash management charge to determine the client net return.

• Standing rate profile: optionally records a pre-existing client rate and protects the return from falling below it.

Each profile uses effective-dated periods. Create a new period when terms change so previous payment calculations retain their original inputs.

Payment runs

A payment run selects one or more pools for the same bank and currency, checks the available statement-backed dates, calculates account-level payments and prepares an instruction for review, approval and bank processing.

Management-account reconciliation

When enabled, Flinq compares calculated client interest with credits found in the management-account statement. Exact and close matches are recorded automatically; missing or different amounts are highlighted for review.