Main account
Interest rate 0.1 % pa (can be changed in the future)
Calculated daily, paid by the end of the month
Flat % 0.1/365 = 0.000002739726 % daily
Designs: Not yet existing, but interest earned won’t be that much highlighted as for saving pockets
Taxes applies - All interested earned is a subject to the tax 20 %.
Example n.1
Let’s assume it is 31st of July and the customer had ₱10 000 on the main account on the first day of the month.
During the month, he has earned
principal * daily_interest * 31 * tax reduction = 10000 * 0.000002739726 *31 * 0.8= ₱0.679452048. Therefore, by the end of the month, ₱0.679452048 will be credited to the principal.
In all cases, interests are computed from the the principal at the midnight of given day.
Example n.2
Customer has ₱10 000 on the main account on the first day of the month.
By the midnight, he will earn: principal * daily_interest * 31 * tax reduction =
= 10000 * 0.000002739726* 0.8 = ₱0.021917808
On the second day, he will make a payment of 1000 PHP, so he will have ₱9 000 as a principal.
After the second day, he will earn: principal * daily_interest * 31 * tax reduction =
= 9000 * 0.000002739726* 0.8 = ₱0.0197260272
Unlocked Pocket
Interest rate 4 % pa (can be changed in the future)
Calculation:
Interest is calculated daily from the principal
Flat %
4/365 =0.0109589041 % daily
Taxes
All interested earned is a subject to the tax 20 %
All taxed are deducted at the moment when the interest is earned, therefore it will be on daily base.
Example n.1
When the customer opens the unlocked pocket with ₱10 000, each day in the month he will earn Interest principal * daily interest * tax reduction = 10000 * 0.000109589041 * 0.8 =₱0.876712328
Interest is added to the principal by the end of the month
Example n.2
Let’s assume it is 31st of July and the customer had ₱10 000 on the unlocked pocket during on the first day of the month.
During the month, he has earned
principal * daily_interest * 31 * tax reduction= 10000 * 0.000109589041 * 31 * 0.8 = ₱27.178082168 Therefore, by the end of the month, ₱27.178082168 will be credited to the principal.
Next month, the principal is ₱10 027.178082168, so the daily interest will be
10027.178082168 * 0.000109589041 * 0.8= ₱0.87909506396
Closing the pocket:
When the pocket is closed, all money (both principal + interest earned this month) will be credited to the main account.
Example n.3
Let’s assume that principal by the first July was ₱10 000 and now is 15th of July. Principal balance is ₱10 000.
Interest earned is principal * daily interest * number of days * tax reduction=
= 10 000 * 0.000109589041 * 14 *0.8= ₱12.273972592
When the customer closes the pocket, he will get credited principal + interest earned = 10 000 + 12.273972592 = ₱10 012.273972592 to the main account.
Locking the pocket:
When customer choose to lock the pocket, then principal + currently earned interest will be principal of a new locked pocket
Example n.4
Let’s assume that principal by the first July was ₱10 000 and now is 15th of July. Principal balance is ₱10 000.
Interest earned is principal * daily interest * number of days * tax reduction =
= 10 000 * 0.000109589041 * 14 * 0.8 = ₱12.273972592
When the customer locks the pocket, the new principal for his locked pocket will be principal + interest earned = 10 000 + 12.273972592 = ₱10 012.273972592 .
Withdrawal:
When the customer is withdrawing money, the maximum amount to withdraw is the principal balance + interest earned this month.
Withdrawn money are credited to the main account.
Money are withdrawn from the interest first.
If the customer withdraws less than or same as already interest earned, only interest accrued balance is affected
Example n.5
Let’s assume that principal by the first July was ₱10 000 and now is 15th of July. Principal balance is ₱10 000.
Interest earned is principal * daily interest * number of days * tax reduction =
= 10 000 * 0.000109589041 * 14 * 0.8 = ₱12.273972592
Customer can withdraw up to 10 000 + 12.273972592 = ₱10 012.273972592
Example n.6
Let’s assume that principal by the first July was ₱10 000 and now is 15th of July. Principal balance is ₱10 000, interest earned is ₱12.273972592.
If he withdraws ₱10.0, his accrued interest balance will be reduced to ₱2.273972592 and the principal will stay same, ₱10 000.
His future daily interest earning for the rest of the month won’t be affected as the principal is same.
Please note that reducing the earned interest balance won’t be reflected in Designs in “Interest Earned” field.
Example n.7
Let’s assume that principal by the first July was ₱10 000 and now is 15th of July. Principal balance is ₱10 000, interest earned is ₱12.273972592.
Interest earned is principal * daily interest * number of days * tax reduction =
= 10 000 * 0.000109589041 * 14 * 0.8 = ₱12.273972592
If he withdraws ₱20.0, his accrued interest balance will be reduced to zero and the principal will change:
initial principal - (withdrawn amount - interest earned) = 10000 - (20 - 12.273972592) =
= ₱9992.27397259
On the midnight, the earned interest will be calculated from this principal.
Designs:
We will show all interest earned after taxes
We will inform the customer that interest rate displayed is already with tax deduction
All pocket balances will show principal amount + interest accrued during the month - taxes
This will be updated on daily basis
Customer will be informed about it, in the pocked detail they will have “i” icon around the pocket balance
Example n.8
Let’s assume that principal by the first July was ₱10 000 and now is 15th of July.
Principal balance is ₱10 000. Interest earned is ₱12.273972592
Customer will see that the pocket balance is ₱10 012.274. (it will be rounded)
Customer will have option to see the history of the earned interest both this month and overall. He should be able to distinguish between active pockets and all pockets.
Locked Pocket
Interest rate is variable and depends on the length of the tenure
Calculation:
Interest is calculated daily from the principal
Example n.1
When the customer opens the pocket with ₱10 000 for 6 months with interest rate 6 % pa.
Each day, he will earn:
principal *daily interest * tax reduction = 10 000 * ( 0.06/365) * 0.8= ₱1.31506849315
After three months, his earned interest will be daily taxed interest * number of days =
= 1.31506849315 * 90 = ₱118.356164384
Interest is credited to the principal by the end of the tenure
Even when the tenure is longer than one year, we won’t pay interest by the end of the first year.
Closing the pocket:
When the pocket is closed, the pocket is unlocked, principal amount is previous principal + interest earned on previous pocket.
Example n.2
The customer opens the pocket with ₱10 000 for 6 months with interest rate 6 % pa with auto-renewal off.
After 6 months, he will earn principal * daily interest * number of days in six months * tax reduction =
= 10 000 * ( 0.06/365) * 182 * 0.8 = ₱239.342465753.
Therefore, pocket will get unlocked and new principal will be previous principal + earned interest = ₱10 239.342465753.
Example n.3
The customer opens the pocket with ₱10 000 for 18 months with interest rate 6 % pa with auto-renewal off.
After 18 months, he will earn principal * daily interest * number of days in 18 months * tax reduction=
= 10 000 * ( 0.06/365) * 547 * 0.8 = ₱719.342465753.
Therefore, he will be credited to the main account principal + earned interest = ₱10 719.342465753
Unlocking the pocket
When the customer will unlock the pocket, then the currently accrued interest will be recalculated as it was unlocked account for the whole time
Example n.4 The customer opens the locked pocket with ₱10 000 for 12 months with interest rate 6 % pa. After 6 months, he decides to unlock the pocket.
After 6 months, his locked earned interest is
principal * daily interest for locked pocket * number of days in 6 months * tax reduction =
= 10000* (0.06/365) * 182 * 0.8 = ₱239.342465753
However, when he will unlock the pocket, the interest will be recalculated with the interest rate of unlocked pocket (4 % pa), so
principal * daily interest for unlocked pocket * number of days in 6 months * tax reduction =
= 10000* (0.04/365) * 182 * 0.8 = ₱159.561643836.
The principal of the unlocked pocket will be previous principal + interest rate earned for unlocked pocket = 10 000 + 159.561643836 = ₱10159.561643836
Prolong tenure
Customer can change the tenure, but only to the longer duration.
When he does this, the tenure is changed from the day he made the change, it is not applied retrospectively.
Example n.5 The customer opens the locked pocket with ₱10 000 for 9 months with interest rate 6 % pa. After 6 months, he decides to prolong the duration to 12 with interest rate 8 % pa.
During first 6 months, his daily earned interest is
principal * daily interest for tenure of 9 months * tax reduction = 10000* (0.06/365) * 0.8 = = ₱1.31506849315
During those 6 months, he will earn taxed daily interest * 182 = ₱239.342465753.
However, when he changes the tenure, the new daily interest will be recalculated with the interest rate of tenure of 9 months (8 % pa). So his daily earned interest is
principal * daily interest for tenure of 12 months * tax reduction = 10000* (0.08/365) * 0.8 = =₱1.75342465753
During next 6 months, he will earn taxed daily interest * number of days in 6 months * = = 1.75342465753 * 182 = ₱319.12328767
By the end of the 12 months, the whole amount will be
principal + interest earned during first 6 months + interest earned during second 6 months =
= 10000 + 239.342465753 + 319.12328767 = ₱10558.4657534
Designs:
It will be similar to the Unlocked pockets, therefore:
We will show all interest earned after taxes
All pocket balances will show the principal amount + interest accrued during the tenure
Customer will have option to see the history of the earned interest both this month and overall. The value won`t be affected by withdrawals.