How to Use the Overdraft and Savings Rate Settings in Brixx

Brixx allows you to simulate interest on positive and negative cash balances through its Overdraft and Savings Rate settings. This feature lets you forecast the impact of interest earned on surplus cash or interest charged on overdrafts.

You’ll find these options in your plan’s Finance Settings.

 

What Are Overdraft and Savings Rates?

  • Savings Rate: This is the interest you earn when your business has a positive cash balance.
 
  • Overdraft Rate: This is the interest you pay when your business runs a negative cash balance (i.e. when your cash goes into overdraft).
 

These rates simulate the cost or benefit of holding cash or borrowing when you dip below zero in your bank balance.

Where to Set These Rates

  1. Open your plan in Brixx.
  • Click Settings in the top menu.
  • Go to the Finance Settings tab.
  • Scroll to the section titled Overdraft and Savings Rate.
 

Here, you’ll find two fields:

  • Savings Interest Rate (Annual %)
  Overdraft Interest Rate (Annual %)
 

You can set each one independently, and both are annualised rates.

Example: If you enter “3” in the Savings Rate field, Brixx will apply a 3% annual interest rate to positive cash balances, calculated monthly.

 

How Are the Rates Applied?

  • Interest is calculated and shown in your cash flow reports automatically.
  • The calculation is applied monthly, based on your plan’s cash balance at the end of each period.
  • The interest is proportional, based on the annual rate you've set.
 

Example: A 6% overdraft rate would apply approximately 0.5% interest per month on any negative cash balance.

 

Why Use This Feature?

  • Reflect real-world financial costs when forecasting dips into overdraft
  • Include earned interest from holding reserves or cash in savings
  • Simulate cash management strategies for optimising surplus funds
  • Forecast the true cash position more accurately in both best-case and worst-case scenarios
 

What You'll See in Reports

Once set, interest charges or earnings will appear in your Cash Flow Report under:

  • Interest Received (for positive balances)
  • Interest Paid (for negative balances)
 

These will also affect your net cash movement and your final cash position.