Interest is:
- Earned on deposits swept into the network
- Paid on deposits received from the network
- Accrued daily and paid monthly
Supply institutions earn interest on deposits swept into the network. At the end of the month, receiving institutions will receive a wire drawdown request to credit accrued interest into their receiving account to cover the interest payable expense for that month.
The interest rate earned on network deposits is a weighted-average rate paid by the receiving institutions. Interest is accrued daily and paid monthly. Simple interest is calculated on deposits in network, where daily interest accrued is based on the balances at end of day.
The sending institution earns interest from the network, and, has full discretion to set the interest rate on individual depositor accounts.
For further details around interest and disbursement, please contact the ModernFi team.