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  • Cash management

Features and benefits

The reporting structure of the Cash Management System assists you to identify cash surpluses and deficits within the interest being paid or earned by profit centres in various divisions, regions, branches or subsidiaries.

    • The overall interest you earn across all your bank accounts is maximised
    • Reporting on your account can be set up and consolidated at various reporting levels to suit your unique business needs
    • A full, global view of all your bank accounts and cash positions means you instantly have all the information you need to make informed decisions at the right time

Cash Management Systems for your business

 

Category A – Single legal entity

Category A – Single legal entity

Available to entities in which all current accounts have the same company registration number.

  • Get preferential credit and debit interest rates
  • Access optimised rates without having to arrange multiple transfers
Category B – Single and multiple legal entities

Category B – Single and multiple legal entities

Ideal for the interest management of deceased estates, pension funds, medical aids, trust accounts, estate late accounts or any other account were the client doesn’t want set-off balances or the Registrar prohibits set-off of credit and debit balances.

  • Maintain non-set-off balances for single and multiple entities 
  • Acces an interest payment benefit only 
Category C – Multiple legal entities

Category C – Multiple legal entities

Applies to multiple legal entities only. All accounts within the structure are set-off to arrive at a net position for the group on which actual interest is calculated and paid or earned. 

  • Provides and administers the full set-off of balances for interest calculation purposes
  • Debit and credit balances of all the accounts in the group are set-off and interest calculated on the notional balance

 

How it works

The credit balances in some of your current accounts are offset against the debit balances of others (also known as consolidated notional pooling).

The consolidation allows for the set-off of debit and credit balances (where required). Interest is then calculated on the notional balance.

The set-off of balances are notional with no physical movement of funds, which further reduces costs. 

Debit and credit interest

  • In the cash management system, interest is paid or charged by the bank on the net position.
  • The net position of each cash management group is automatically calculated every evening.
  • If a group’s net position at the level is a surplus (credit), then interest at a call deposit rate is calculated on this amount. Conversely, if a group’s net position at the level is a deficit (debit), then interest is calculated at either the current overdraft rate.

Cash management statements

  • Reporting is done on a structured basis.
  • Cash Management statements are provided for
    each node of the Cash Management group and available separately to preserve intragroup confidentiality.   
  • Additional information, such as the debit and credit interest rates and interest amounts for each account and each node as well as set-off amounts and charges for Category C clients, is shown.
  • The Cash Management reports show current net positions and account balances as well as all commutative reports covering any period during the past two cycles or between dates specified by the client.

A/C level

N$5 DR

N$2 DR

N$10 CR

N$3 CR

N$2 CR

N$3 DR

Diagram of non-setoff and setoff interest benefits

Example 1 (Not on Cash Management)

Accounts
DR
CR
Int%
Int

100

20%

20 DR

100

15%

15 DR

100

100

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