Cash Management Solutions

• Reporting – Your account can be set up and consolidated at various reporting levels to suit your unique business needs;
• Optimum interest earnings - The overall interest you earn across all your bank accounts is maximised because the solution allows you to offset the credit balances in some Nedbank current accounts with debit amounts you have in others (also known as consolidated notional pooling for Category C). The consolidation allows for the set-off of debit and credit balances (where required) and calculated the interest of the notional balance. The set-off of balances is notional set-off (no physical movement of funds), which reduces the costs associated with the management of funds; and
  
• Better financial decision-making – A full, global view of all your bank accounts and cash positions means you instantly have all the information you need to make informed decisions at the right time. 
  

The reporting structure of the Cash Management system assists you to identify cash surpluses and deficits for the various divisions, regions, branches or subsidiaries within the interest being paid or earned by each profit centre.

Category A – Single Legal Entity

• All current accounts have the same company registration number.
• Benefits of Set-off and market related interest rates:

       - Preferential credit & debit interest rates; and

        - Access to optimize on interest rates without having to arrange multiple transfers

Category B – Single and Multiple Legal Entities

• Offers non-set-off balances for single and multiple entities if the relationship manager wants to offer an interest payment benefit only, not the benefit of the set-off; and
• Ideal for the interest management of deceased estates, pension funds, medical aids, trust accounts, estate late accounts or any other account were the client doesn’t want set-off of balances. The Registrar prohibits set-off of credit and debit balances for such accounts.

Category C – Multiple Legal Entities

Provides the full set-off of balances for interest calculation purposes, but applies only to multiple legal entities, which means that all the accounts within the structure are set-off to arrive at a net position for the group on which actual interest is calculated and paid/charges. The system will check the balances of all the accounts in the group, set them off and calculate debit/credit interest on the notional balance. There is no physical movement of funds on notional pull of the balances.

• Reporting is done on a structured basis;      
• Cash Management statements are provided for
  each node of the Cash Management group and available separately to preserve intragroup confidentiality;   
• Additional information, such as the debit and credit interest rates and interest amounts for each account and each node as well as set-off amounts and charges for Category C clients, is shown; and    
• The Cash Management reports show current net positions and account balances as well as all commutative reports covering any period during the past two cycles or between dates specified by the client.

• In the Cash Management system, interest is paid or charged by the bank on the net position. The net position of each Cash management group is automatically calculated by the Nedbank mainframe every evening. If a group’s net position at the level is a surplus (credit), then interest at a call deposit rate is calculated on this amount. Conversely, if a group’s net position at the level is a deficit (debit), then interest is calculated at either the current overdraft rate; and
• At the lower levels notional interest rates specified by the client are calculated. At the end of the client’s selected interest cycle, a debit or credit interest entry is passed to a central nominated interest account for the group and notional interest is then allocated to the various subgroups or the individual current accounts. The Cash Management statements provided at the end of each interest cycle set out the net positions and interest calculations for the group.