Interest Rates > Compound Interest

This setting controls whether interest is calculated on interest.

None (Default)

Don't compound interest at all.

Daily (without rounding)

Interest is compounded daily. At the end of each day, the interest is rounded to the nearest whole unit (ie cents, pence) rather than retaining the fractional parts.

This is to make all individual numbers displayed in a report add up correctly, even though some should have fractional parts.

Daily (with rounding)

Interest is compounded daily, retaining the fractional parts. If the report contains numerous separate numbers that have to be accumulated, small errors may appear because of the effect of rounding to whole cents. However the final result will be correct even if the individual parts to do not exactly tally to that figure.

Scheduled

This mode lets you enter a formula such as 'Every second week starting Thursday 14th', 'End of every calendar month', etc. It also lets you enter specific dates. See the Scheduling of Interest & Compounding topic.

Annual

Interest is compounded every 12 months from the starting date.

Same as Interest

Interest is compounded whenever interest is calculated.

However, compounding occurs immediately before the interest calculation so that when compounding and interest occurs on the same day, the interest on that day is not compounded until the next compounding date.