Interest Payment & Monthly Settlement

ModernFi is responsible for calculating and facilitating payment of all interest earned and owed on funds held in the deposit network each month. Interest on balances in the network is accrued daily and paid monthly.

For interest earned by your individual members on their Extended Insurance Accounts, your credit union determines the interest rate earned. This interest rate is set by your credit union during the account opening process and can be changed at any time through the ModernFi Admin Portal.

Settlement Process

On the final day of each month, ModernFi will provide your institution with an End of Month Interest Statement detailing interest due to depositors, fee income earned from the network, and fee expense owed to the network and instructions for the settlement process.

Settlement and member interest are handled separately. ModernFi will initiate all settlement activity via drawdown or wire directly with your Program Account on the first business day of the month. Dividends earned by your members will be credited to their Extended Insurance Account's through the standard daily allocation cycle on that same day.

ModernFi will support you with data to manage your program on a daily basis. Standard reports are generated daily for each institution, outlining all key data points needed to manage and account for the program. Data captured in these reports includes total balances in program, interest accrued, account and program interest rates, transaction and account activity, and wire activity.

Additionally, ModernFi produces monthly settlement and reconciliation reports your institution can leverage to assist with accounting and core reconciliation. Data captured in these reports includes total deposits in the network, total deposits received from the network, accrued interest, interest expense, fee income earned, and fee expense due.

Example End of Month Interest Statement below.