Documentation

For interest-bearing bank accounts, Column will automatically accrue daily interest using an account's available balances at 4:01pm PST (exclusive) on every calendar day. This is the same cut-off time we use for daily bank account statements. Note - this could differ than the cut-off time used in your daily reports.

Config Determination

For each interest-bearing bank account, if a specific interest config is set on the account, we will use that config. Otherwise, we apply the default interest config set on your platform. In addition, if the earliest effective date of that interest config is in the future, we will skip accrual on an account with this config. Two interest accruals are calculated for each interest-bearing account with effective interest configs:

1. Interest you pay to your account holders (platform to user interest). This interest is accumulated and paid out directly to your customers' bank accounts monthly.
2. Additional interest Column pays your platform for balances held in accounts (column to platform interest). Interest spread is accumulated and paid out to the interest revenue account of your platform monthly.

In most cases, it's likely the rate Column offers you is less than the rate you offer customers. As such, we will credit the spread to you on an account-by-account basis. However, it's possible the interest rate your platform pays your customers may be higher than the rate Column pays you. For example, Column may pay you 3.00% on all balances on your platform daily. However, you may choose to pay your customers a promotional interest rate of 3.50%. This means the interest rate spread will be -0.05% for those bank accounts. Column will debit (rather than credit) that spread from your interest revenue account.

If your plan to offer promotional interest rates, you should fund your interest revenue account ahead of each monthly payout.

Interest Accrual Calculation

Daily interest rates are calculated by dividing the effective annual rate for a bank account by the number of accrual basis days (e.g., 365 days for actual_365). Daily interest rates are rounded to the 13th decimal digit. Daily interest accruals are calculated by multiplying daily interest rates by available balances. Results are truncated to the 6th decimal digit.

Example

Suppose Column pays your platform 5.00% on all balances and there are three bank accounts on your platform with the same available balance $13,692.57:

• Account A: your platform pays 4.00% to its account owner
• Account B: your platform pays 5.50% to its account owner
• Account C: your platform doesn't pay interest to its account owner (is_interest_bearing = false)

Assume we use an actual_365 accrual method for all interest configs. We will calculate daily interest accruals as follows: