Interest Calculation

System For A Retail

Bank
Introduction
 Purpose :
The system developed should calculate interest daily for each account
having balance more than zero at the correct interest rate. This interest
calculated will be cumulatively stored in a table which will be updated
every day. The balance on which interest is calculated daily will change
because the customer may deposit or withdraw money. 
Every month the cumulative interest calculated will be credited to the
customer. After this point of time the cumulative interest stored should be
set to zero because the customer has benefited for the period specified.
Before interest is credited to the customer’s account tax should be debited
from the interest according to prevalent government laws.
 Document Convention:
This document follows the IEEE format standard.
 Project Scope:
The purpose of this system is to help the banks to operate banking
processes efficiently and calculate interest properly at the end of each
period.

 Overall Description:
The following description gives the general factors that affect system and its
requirements:
 The system developed should calculate interest daily for each account having
balance more than zero at the correct interest rate.
 This interest calculated will be cumulatively stored in a table which will be
updated every day.
 Every month the cumulative interest calculated will be credited to the customer.
 Before interest is credited to the customer’s account tax should be debited from
the interest according to prevalent government laws.
 Detailed Design:

 Data Entry screens to capture interest rates for different

categories of accounts. If interest rate is annual then
daily interest calculated should be divided by 365.
 Calculate daily interest and store cumulative interest in a
table 
 Add the cumulative interest at the end of the month to
the customer’s account balance.
 Deduct tax when interest is paid out to the customer.
 Generate reports indicating interest earned on a periodic
basis.
 Data entry screens to maintain interest rate structure.
 Functional components of the project:

 Data Entry screens to capture interest rates for different

categories of accounts. If interest rate is annual then daily
interest calculated should be divided by 365.
 Calculate daily interest and store cumulative interest in a
table.
 Add the cumulative interest at the end of the month to
the customer’s account balance.
 Deduct tax when interest is paid out to the customer.
 Generate reports indicating interest earned on a periodic
basis.
 Data entry screens to maintain interest rate structure.
 External Interface Requirements:
 User Interfaces:
Our system will make use of the existing web browser such as
Microsoft internet explorer or Mozilla.
 Hardware Interfaces:
PC with 2 GB hard-disk and 256 MB RAM
 Software Interfaces:
 Windows 95/98/XP with MS-office.
 MS-SQL server.
 Oracle database system.
 Java, ASP, JSP, Servlets, Java Script.
 VB
 Non-Functional Requirements:
 Performance Requirements:
The system will update all account status after every transaction.
 

 Security Requirements:
 All exchange from client to server shall occur using the highest available
level of secure connection.
 Account-id shall be verified before granting the access.

 Software Quality Attributes:

 Usability:
 The system is user friendly and self-explanatory.
 Robustness:
 The system should ‘lock’ the login id if wrong password is entered 3 times
in a row. This feature will improve the robustness of the application.