Examples of transfer rules
Transfer rules move funds between two of your accounts based on a defined threshold balance in one of your accounts. The threshold type associated with the transfer rule can be defined as either above or below the threshold balance. Following are examples based on each threshold type.
Account balance is above the desired threshold
You create a transfer rule named Weekly Checking A to move funds from your checking account (Checking A) to your money market account (Money Market 101) when funds in Checking A exceed $10,000. Although funds will only transfer if the balance exceeds the threshold amount of $10,00, the target balance for Checking A is $9,000. Therefore, if the balance exceeds $10,000 a transfer is created and funds are transferred to Money Market 101 from Checking A so that the balance of Checking A meets the target balance of $9,000. This rule is to run on a weekly basis.
The rule criteria states:
- Threshold Type is Above. (A transfer is created if the balance exceeds the defined threshold amount when the system evaluates the rule)
- Target Account is Checking A
- Secondary Account is Money Market 101
- Threshold amount is $10,000. (When the system evaluates the rule, this balance amount triggers the system to create the transfer)
- Target Balance is $9,000. (When the rule is evaluated, the system transfers the correct amount so that the balance of the Target Account equal this amount.)
- Frequency is weekly to start on 09/18/2012
Once a week starting 09/18/2012, the system evaluates Weekly Checking A to determine if the criteria associated with the rule has been met.
- Week one 09/18/2012 – The rule, Weekly Check A is evaluated by the system. The balance of Checking A is $12,150 which is above the defined Threshold Amount. Based on the rule's criteria, the system creates a transfer from Checking A to Money Market 101 of $3,150. Since the Target Balance is $9,000, the transfer is made based on the calculation of $12,150 - $9,000, which equals $3,150.
- Week two 09/25/2012 – The rule, Weekly Check A is evaluated by the system. The balance of Checking A is $9,900. Since the balance did not go over the Threshold Amount, the system does not create a transfer between accounts.
Account balance is below the desired threshold
You create a transfer rule named Daily Checking B to move funds from to your checking account (Checking B) from your money market account (Money Market 101) if the balance of Checking B falls below the $5,000. Although funds will only transfer if the balance goes below the threshold amount of $5,000, the target balance for Checking B is $7,000. Therefore, if the balance falls below $5,000 a transfer is created and funds are transferred from Money Market 101 to Checking B so that that balance of Checking B meets the target balance of $7,000. This rule is to run on a daily basis.
The rule criteria states:
- Threshold Type is Below. (A transfer is created if the balance is below the defined threshold amount when the system evaluates the rule)
- Target Account is Checking B
- Secondary Account is Money Market 101
- Threshold amount is $5,000. (When the system is evaluates the rule, this balance amount triggers the system to create the transfer)
- Target Balance is $7,000. (This amount determines the amount of funds to transfer from the secondary account to the target account when funds fall below the threshold amount.)
- Frequency is daily to start on 09/12/2012
Each day starting 09/12/2012, the system evaluates Daily Checking B to determine if the criteria associated with the rule has been met.
- Day one – The rule, Daily Checking B is evaluated by the system. The balance of Checking B is $4,500 which is below the defined Threshold Amount of $5,000. Based on the rule, the system creates a transfer from Money Market 101 to Checking B for $2,500. Since the Target Balance is $7,000, the transfer is made based on the calculation of $7.000-$4,500, which equals $2,500.
- Day two – The rule, Daily Checking B is evaluated by the system. The balance of Checking B is $6,000. No funds are transferred.
Although the Target Balance is not met, the balance of the account did not fall below the Threshold Amount of $5,000; therefore no funds are transferred from Money Market 101 to Checking B.
