---
title: "Creating and Configuring Interest Conditions"
description: "Interest conditions define the interest rates and calculation methods for bank accounts — with fixed interest rates or variable rates based on reference interest rates."
source_url: https://support.lucanet.com/en/documentation/banking-and-cash-management/cash-management/interest-management/interest-conditions
language: en
last_updated: 2026-08-27
---
# Creating and Configuring Interest Conditions
## Overview
Interest conditions define the interest rates and calculation methods for bank accounts. They determine the conditions at which Lucanet Banking & Cash Management (BCM) calculates debit, overdraft, commitment, and credit interest.
> **Note:** If the interest condition is to use a variable interest rate, first create the [reference interest rate](https://support.lucanet.com/en/documentation/banking-and-cash-management/cash-management/interest-management/reference-interest-rates.md) and then the interest condition that builds on it.
## Navigation
The **Interest conditions** workspace can be found under **Banking & Cash Management | Cash management | Interest conditions** and is displayed as follows, for example:
Workspace 'Interest conditions'
## Creating Interest Conditions
To create an interest condition:
1. Navigate to **Cash management | Interest conditions**.
2. Click **+ New** in the upper left corner. The configuration options for an interest condition are displayed as follows:
Configuring an interest condition
3. Configure the interest condition according to your requirements (see [Configuring Interest Conditions](#configuring-interest-conditions)).
## Configuring Interest Conditions
The configuration options of an interest condition are divided into three areas: **Basic data**, **Debit interest rates**, and **Accounts**.
### Basic Data
The **Basic data** area contains the following options:
| Option | Description |
|---------|---------|
| **Caption** | Unique name of the interest condition for identification. Is referenced in interest statements and overviews. |
| **Consolidation** | Time interval of the interest calculation. Determines how often BCM calculates and capitalizes interest. Available values: **Daily**, **Monthly**, **Yearly**, **Complete**. |
| **Interest Calculation Method** | Method for calculating the interest. Depending on the industry and contract type, different calculation methods can be used. Available values:
- **30/360 - German (commercial) interest method**
- **Act/360 - Euro interest method, French interest method**
- **Act/365 - English interest method**
- **Act/act - Daily accrual or effective interest method**
- **30E/360 - US interest method** |
| **Differing interest statement report** | Selection of an alternative report template for the interest statement from a list of predefined templates — for customer-specific or multilingual interest statements. For each template, the list displays:
- **Display Name**
- **Code**
- **Language**: English or German
- **Version**
- **Timestamp**
- **Landscape**: True or False |
### Interest Rate Types
For each interest condition, you define up to four **interest rate types**. Each type can contain several entries with different validity dates. The following interest rate types are available:
- Debit interest rates
- Overdraft interest rates
- Commitment interest rates
- Credit interest rates
When creating, you choose between two options for each interest rate type:
Interest rate options
**Option 1: Interest condition rate (fixed interest)**
Direct, fixed interest rate without reference.
| Option | Description |
|---------|---------|
| **Valid from** | Start date from which this interest rate applies. Enables you to stagger interest rates over time. |
| **Interest rate** | Fixed interest rate as a percentage, for example **2.5000** for **2.5%**. Is used directly for the interest calculation. |
**Option 2: Reference based interest rate (variable interest rate)**
Variable interest rate based on a reference interest rate plus margin.
| Option | Description |
|---------|---------|
| **Reference interest type** | Reference interest rate from the list of [reference interest rates](https://support.lucanet.com/en/documentation/banking-and-cash-management/cash-management/interest-management/reference-interest-rates.md). BCM automatically uses the current value of the reference interest rate for the calculation. You create new reference interest types via the **Plus** icon directly in the dialog; the master data is maintained under **Master data**. |
| **Valid from** | Start date from which this interest rate configuration applies. |
| **Marge** | Premium or discount on the reference interest rate as a percentage, for example **1.5000** for **+1.5%**. The final interest rate results from reference interest rate + margin. |
### Accounts
In the **Accounts** area, you select the bank accounts to which the interest condition is to apply. Multiple selection is possible.