Earnings Credit Rate (ECR) Analysis

You can enter variables to calculate Earnings Credit Rate (ECR) to quantify the minimum balance required to offset fees. Based on the information entered, the system determines any excess cash balance (balance less float) and recommends one of two options:

• Invest the money (hard interest only).

• Use the money to offset fees by maintaining a minimum bank account balance (offset fees) and invest the remainder.

The report also provides the monthly and annualized yield amounts for the recommended option.

Enter the variable amounts

1. On the Treasury Cash Management page, click Cash Flow/Working Capital > Earnings Credit Rate.

2. Enter the Ledger cash balance amount.

3. Enter the Gross ECR rate, up to four decimal places.

4. Enter the Interest bearing rate, up to four decimal places.

5. Enter the Analysis fees amount.

6. Enter the Balance assessment fee rate, up to four decimal places.

7. Enter the Float amount.

   The balance amounts are calculated, based on the data entered in Steps 2-7, and any excess cash balance is shown in the Balance less float field. Either hard interest or offset fees is given as the most lucrative option. In the following example, the recommended option is Hard interest only.