What is reference interest rate cash deposit in SAP RE - Real Estate Management?

SAP Term: reference interest rate cash deposit

• Component: RE

• Component Name: Real Estate Management

• Description: A key containing the various interest rates for the cash deposit interest clearing. This key is maintained in Customizing. &EXAMPLE& Interest rate,,Valid from 1.25%,,01.01.98 1.50%,,10.01.98 1.75%,,01.01.99

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• Key Concepts: 
  Reference interest rate cash deposit is a feature of SAP Real Estate Management (RE) that allows users to deposit funds into a bank account and receive interest payments based on a reference interest rate. The reference interest rate is determined by the bank and is usually based on market conditions. The funds deposited into the account are held in trust and can be used for various purposes, such as paying rent or making investments.
  
  How to use it: 
  To use the reference interest rate cash deposit feature, users must first create a bank account in SAP RE. Once the account is created, users can deposit funds into the account and specify the reference interest rate they wish to receive. The bank will then calculate the interest payments based on the reference rate and deposit them into the account. 
  
  Tips & Tricks: 
  It is important to keep track of the reference interest rate as it can change over time. It is also important to monitor the balance of the account to ensure that sufficient funds are available for any payments that need to be made. 
  
  Related Information: 
  The reference interest rate cash deposit feature is similar to other banking features such as savings accounts and certificates of deposit. It is important to understand the differences between these features in order to make informed decisions about which one is best for your needs.