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Calculate account interest

The FA Platform allows you to calculate interest to accounts for which you provide portfolio credit. You can set up account interest at different thresholds based on the account balance, and if portfolio credit is in use, you can calculate negative interest to an account. Interest is calculated separately for each account. If no valid thresholds are defined, the exchange rate of the base instrument is used to calculate account interest.

The Fees and interests view allows you to initiate new account interest calculations and keeps track of the calculation runs you have made previously.

Step 1 - Set up account interest

Before running interest calculations for accounts, you need to set up the interest details for them in the Portfolio window, Accounts tab. Interest calculations are only executed when all of the following are true for an account:

  • A base instrument security is configured in Interest details, Accounts tab.

  • The calendar is configured in Interest details, Accounts tab.

  • There is at least one previous account item or interest position.

  • The transaction type is configured in Interest detailsAccounts tab.

For details on configuring account interest in the Portfolio window, see Accounts.

Step 2 - Define account interest calculation information

After you have defined interest details for portfolio accounts, you can run interest calculations for them in the Fees and interests view. Define the following information for the account interest calculation (a red star indicates a mandatory field):

Calculation date*

The calculation date of the account interest. The calculation date can only be the same or newer than the date of the previous account interest calculation. Interest is calculated until end of previous date.

Transaction type*

The type of the transactions that are created as a result of the account interest calculation. Select the transaction type that matches the transaction type in the accounts you want to calculate interest for.


Notes related to your account interest calculation. You can use them, for example, to store additional information or to help with searching for previous interest calculations.

To save a new account interest calculation, click the Save & close button.

The account interest is not yet calculated, nor are the transactions created to the portfolios. The calculation is executed in the next step.


Step 3 - Calculate account interest to selected portfolios

After you have created and saved the account interest calculation, you need to run it.

  • Choose the portfolios you want to calculate the account interest to. By choosing all portfolios in the run, the interest calculation is performed on all portfolios with the interest calculation information linked to them.

  • Define the tax rate and tax type to be used in the transactions created (you can also define default tax rates in Preferences - Taxation - Default tax rates to be used automatically).

  • Click Run & close to get a preview of the transactions to be created as a result of the run. Click Accept and run to create the shown transactions to the portfolios. Alternatively, you can schedule the interest calculation to be run by the system on a later date by defining a date and time and clicking the Schedule & run button.


Calculation period

Account interest is always calculated for a certain calculation period determined by the system:

  • The calculation period always starts from one of the following:

    • The date of the previous account interest calculation

    • The start-up date of the portfolio if interest has not been calculated for the portfolio before

    • The earliest transaction within the portfolio if neither a previous transaction nor a start-up date can be found

  • The calculation period ends at the calculation date defined in the Account interest calculation window.

You can choose the calculation date of the account interest as a date after the calculation date of the previously calculated account interest. If you choose a date from the middle of a previous calculation period, the account interest is not calculated. If you choose the same calculation date as the calculation date of the previous calculation, the account interest is re-calculated and the previous transaction is replaced with the transaction from the new calculation.

Account interest transaction account

The account interest transactions are created to the account for which account interest has been configured in Interest details, Accounts tab.