Savings account yield calculation in the Investments and Loans routine (FINA171 and FINA181)

As of release 12.1.23 - January, a new method for calculating the yield of the savings account was implemented, according to the rules defined by the Federal Government, including the calculation of the yield for "old" savings accounts (opened up to 05/03/2012).
The calculation of profitability, as of this enhancement, considers the TR (Reference Rate) as basic remuneration plus additional remuneration based on the Selic Target variation (for "new" savings accounts opened as of 05/04/2012), defined by the Monetary Policy Committee (COPOM), or defined by the Central Bank of Brazil (BCB), for "old" savings accounts.
The savings account is not subject to income tax, and the interest is calculated using the compound interest formula.

Old savings account x New savings account

As of 05/04/2012, every deposit in a savings account has its yield calculated taking into account the Selic Target established by COPOM:

• If the Selic Target is equal to or lower than 8.5%, the savings yield will be TR + 70% of the Selic Target. Example:

Selic Target: 6.5% p.a.
70% of the Selic Target: 4.55% p.a.
Annual to monthly rate conversion: 0.3715% p.m.
Savings Account Yield: 0.000 (current TR) + 0.3715.

• If the Selic Target is higher than 8.5%, the savings account yield will be TR + 0.5% per month.

For deposits made up to 05/03/2012, the savings account yield will be TR + the rate published by BCB (currently, the rate is fixed at 0.5%, but in periods when the economy was unstable, this rate has fluctuated).
An old savings account that receives new deposits will have its yield calculated in the two ways described above, with all new deposits receiving yields according to the new rule, and the previous ones according to the old rule, making up the total balance of the account in question. Redemptions made in these accounts will always be made from the newest to the oldest balance, that is, taking into account first the new deposits and, after exhausting them, redeeming the old balances.

Savings Account Anniversary

The yield calculation takes into consideration the anniversary date of the savings account, i.e., its yield is only calculated to compose the savings balance on its anniversary every month. However, there are some rules for checking the account anniversary:

• If the savings account anniversary day of the month falls on a weekend or holiday, the next business day will automatically be considered as the anniversary day of that month. Example:

Savings account added on 03/01/2018 (Thursday);
First anniversary on 04/01/2018 (Sunday), so the yield will not be calculated until 04/02/2018 (Monday);
Second anniversary on 05/01/2018 (Tuesday, but a holiday), so yields will not be calculated until 05/02/2018 (Wednesday).

• If a savings account is opened on the 29th, 30th, or 31st, its anniversary automatically becomes the 1st, only being changed if the anniversary falls on a weekend or holiday, as described above. Example:

Savings account added on 03/30/2018 (Friday);
First anniversary on 05/01/2012 (Tuesday, but holiday), so yields will not be calculated until 05/02/2018 (Wednesday).
Second anniversary on 06/01/2018 (Friday).

Tables Involved

With the implementation of this functionality, the following table was created:

The tables already existing in the system which are also involved in the functionality are:

Routines Involved

The routines below are involved in the Sundry Values functionality:

*As from the implementation of the enhancement, the calculation of the savings account yield will be performed only by the method implemented.

Inclusion of index rates

To include the rates of the indexes that will be considered for the calculation of the savings yield, access the menu Updates/Investments/Investments and Loans, then click the button Other Actions/Index Rates :

Browse:

Registration interface:

The following fields are part of the Index Rates registration:

Note: The FO3 table will be released from release 12.1.23.

The FO3_PERC field corresponds to the percentage of the Selic Target that is applied in the rule for new saving accounts, which is currently set at 70%. When adding a new record to the FO3 table, the FO3_PERC field is automatically started with the content of the MV_PERCSLM parameter. This parameter was created with a view to possible changes that may occur in the savings account yield rules in the future, ensuring that it is possible to change the rule in a more practical way for calculating the yield, if necessary.

Making a Savings Account Redemption

The procedures for the redemption of the savings account have not changed, only the calculation of yield that is performed differently. For a savings account worth BRL 100.00, registered on 02/05/2018, whose anniversary occurs on the 5th of the following months (except on weekends and holidays), we will have the following yield:

The savings account in the example above had a yield of BRL 3.79 over ten months, with the yield calculated based on the rates registered on the savings account's anniversary day. It is essential that the registration of the rates contemplates all the days on which the savings account in question has an anniversary.

If, on any of the savings account anniversaries, no rate is registered in the FO3 table, the yields balance will be compromised, but as long as the redemption is not confirmed, it will be possible to adjust the rates and make the calculation for the savings account redemption again.