Managing Deposits

There is an integrated Deposit Account for every Lease and every Mandate of an Asset which can be used as an interest bearing account for Tenant and Landlord deposits. The individual deposit accounts form part of a system managed pooled Investment Account with a published and agreed to Interest rate that is configurable on a per Deposit Account level.

To open the Tenant and Landlord Deposit Accounts on the Accounts Dashboard for an Asset:

Navigate to the Accounts Dashboard
From the Accounts drop down list select the Tenant Deposit Account and / or Landlord Deposit Account. They are by default not selected and visible on the dashboard. See screenshot below.

Investing of Deposits

Deposits are invested in a pooled ABSA RAMS Investment Account. Each individual Tenant and Landlord deposit account can be managed separately from the Accounts Dashboard in RAMS. When an Asset or Lease is created, the system will automatically create a Landlord and Tenant Deposit Account. The default Deposit Account interest will be set to the value configured on the Company Settings dashboard. Any user with the relevant permissions can also change the default Interest Rate on a per Deposit Account basis. This percentage can however not be more than the percentage that has been agreed to for the company in the subscription agreement.

To make an Investment in a Tenant Deposit Account:

Bill the relevant amount to the Deposit Category on the Tenant Account
Create a Payment Instruction on the Allocations Dashboard to pay the Deposit Category balance when money is available in the Tenant Wallet. The system will automatically link the Investment Account beneficiary to the Tenant Deposit Category.
Approve the Payment Instruction for payment. The system will then transfer the funds to the pooled Investment Account and update the Tenant Deposit Account with the investment transaction.

To make an Investment in a Landlord Deposit Account:

Bill the relevant amount to the Deposit Category on the Landlord Account
Create a Payment Instruction on the Allocations Dashboard to pay the Deposit Category balance when money is available in either the Tenant or Landlord Wallet. The system will automatically link the Investment Account beneficiary to the Landlord Deposit Category.
Approve the Payment Instruction for payment. The system will then transfer the funds to the pooled Investment Account and update the Landlord Deposit Account with the investment transaction.

Calculation and Capitalisation of Interest

Interest are calculated daily on Deposit Account balances using the interest rate configured for the Deposit Account. Once a month or when the Deposit is released, the interest is capitalised and written to the account in the form of an Interest Earned transaction. Let's look at a typical example:

Deposit Account Balance = R 15 000 and agreed interest rate is 3%
On a daily basis Interest is calculated and saved as (R 15 000 x 0.03) / 365 days = R 1.2328767 / day
If the deposit was in the Investment Account from the 5th of August to 31st of August, that would mean that interest accumulated for 27 days = R 1.2328767 x 27 = R 33.29
Interest is capitalised at the end of every month resulting in an Interest Transaction on the Investment Account of R 33.29 and a new Deposit Account balance of R 15 033.29
If the deposit is now withdrawn on 10 September, it means that daily interest is now calculated at (R 15 033.29 x 0.03) / 365 days = R 1.23561 / day
From the 1st to the 10th of September a total of R 1.23561 x 10 days = R 12.36 was earned and capitalised resulting in a final Deposit Account balance of R 15 033.29 + R 12.26 = R 15 045.65