What is home loan and savings contract in SAP FS-AM - Account Management?

SAP Term: home loan and savings contract

• Component: FS-AM

• Component Name: Account Management

• Description: Financial product that combines savings and mortgage financing for a residential property. The contract amount, therefore, comprises a savings amount and a loan amount. The contract holder saves a contractually agreed percentage of the contract amount, which can be increased at any time if the contract holder decides to extend the savings phase and thereby postpone the payout date. After this date and when certain criteria have been met, the contract holder has a legal right to be paid the contract amount according to the terms of the contract.

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• Key Concepts: 
  A home loan and savings contract is a type of financial product offered by SAP Financial Services (FS-AM) Account Management. It is a combination of a loan and a savings account, allowing customers to borrow money for their home while also saving money for future expenses. The loan is secured against the customer's home, and the savings account earns interest over time. 
  
  How to use it: 
  The FS-AM Account Management component allows customers to manage their home loan and savings contracts. Customers can view their current balance, make payments, and view their payment history. They can also set up automatic payments and transfer funds between their loan and savings accounts. 
  
  Tips & Tricks: 
  It is important to remember that the loan portion of the contract is secured against the customer's home. If payments are not made on time, the customer may be at risk of losing their home. It is also important to remember that the savings portion of the contract earns interest over time, so it is important to make regular deposits into the account in order to maximize returns. 
  
  Related Information: 
  For more information about FS-AM Account Management, please visit the SAP website at https://www.sap.com/products/financial-services-account-management.html.