Interest accrues daily and is paid monthly. ModernFi is responsible for calculating and facilitating payment of all interest earned and owed on funds held in the deposit network each month.
Interest accrues every day of the year on an Actual/365 basis. Daily accruals are calculated based on end-of-day balances for deposits held in the network.
The network rate is a weighted-average rate paid by receiving institutions on deposits placed with them. Institutions that sweep deposits into the network earn this rate on swept funds. Institutions that receive deposits from the network pay this rate on funds received.
Your institution has full discretion to set the interest rate on individual depositor accounts, independent of the network rate you earn. This rate can be updated at any time.
At month-end, ModernFi calculates and facilitates all interest earned and owed on funds held in the deposit network. Your institution receives an End of Month Interest Statement, and all payments must be wired to the network by 2:00 PM ET on the first business day of the following month. ModernFi then credits interest to individual depositor accounts that same day.