Investable Balance (NIF) (7/14)

Account Analysis consists of balances and fees which comprise a basic math calculation. There are 14 balances that I refer to as "Remember the Math". I will discuss all 14 in 14 different posts.

Investable Balance (NIF)

The investable balance is the amount available for the bank to invest after the deduction of any reserve requirement so it's the net investable funds (NIF) available.

Investable Balance is one of the numbers used to calculate/audit the Earnings Allowance sent by the bank on an 822 file.  Some calculations call for the Available Balance * (1-RR), where RR is the Reserve Requirement, but the NIF is already that net value.

Lucky Number 7

In the math thus far, Investable Balance is the 7th balance on the Compensation side of the Account Analysis equation referred to as "Remember The Math":

         Average Positive Collected Balance
 less DDA Balance Reserve Requirement
         Investable Balance (NIF)

Because the Investable Balance may be used to calculate the Earnings Allowance and/or determine the minimum account balance needed to offset service charges it is one of the 14 key balances in Account Analysis.

Happy Analyzing!