Deposit Accounts; added an option to support Negative Interest Rates

An option to support Negative Interest Rates for Deposit Accounts has been added to finPOWER Connect. Whilst we don't believe Deposits will necessarily ever require an option to do this, i.e. post negative Interest which reduces the Deposit Balance, this future proofs this area.

To allow a Deposit Account Type to specify negative interest, on the "Interest Options" page of an Account Type, under the Options section, check "Allow Negative Interest Rates?".

Once this is checked, a Negative Interest Rate will be allowed.

Note, Withholding Tax is not deducted from negative Interest transactions.

The default is to treat Withholding Tax for these Transactions as still applicable, but at 0% and $0.00. However, to exclude them from Withholding Tax, under the "Allow Negative Interest Rates?" option, check "Set Withholding Tax to "Not Applicable'?".

Note, the Deposit Certificate will print a negative Interest Rate as "Negative x%" rather than "(x%)". This makes it clearer for the investor that the rate is negative. In all other places the Interest Rate uses the standard brackets for negatives.

Note, before using Negative Interest you should carefully review your tax obligations and check finPOWER Connect meets your requirements.

The following Word Document template has been updated:

• Deposit_Certificate.xml
• Version: 1.02 (7/10/2020)