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Manage Interest Bearing Deposit (IBD) accounts for properties

  • Updated

Learn how to set up and manage Interest Bearing Deposit (IBD) accounts in Vault, including adding accounts, receipting interest, and transferring funds.

This article covers:

About IBD accounts

An Interest-Bearing Deposit (IBD) account is a short-term, high-interest joint account typically held between the seller and buyer. MRI Vault allows you to easily manage IBD accounts for each property.

Note: If you do not see the options described below, please contact our support team via the Support Request menu.

Set up an IBD account for a property or sale

Before you can receipt funds or interest, you need to create an IBD account in MRI Vault.

  1. Go to: A property profile
  2. Click the Financials tab > IBD
  3. Click Create IBD Account (bottom right)
  4. Enter the account details provided by your bank when the IBD was activated.
  5. Include the Tax File Number (TFN) for tax purposes
    Add-ibd-account.png
  6. Click Save

Once the account is created, you can:

  • Receipt money or interest
  • Deduct charges
  • Transfer funds in or out of the account
Tip: If the deposit was received directly into the IBD account, click Receipt Monies to record it.

Transfer funds between accounts

If the deposit was received into the sales trust account, receipt it into the sales trust ledger first. Then use the Sale Transfer button in the IBD area to move funds.

  1. Go to: A property profile
  2. Click the Financials tab > IBD
  3. Click Sale Transfer (bottom right)
  • Transfer From - Sales Trust Account
  • Transfer To - IBD Account
  1. Enter the details
    Sale-transfer.png
  2. Click Save

You can also transfer funds back from the IBD account to the Sales Trust Account or directly to another recipient.

Receipt interest into MRI Vault

When you receive the bank statement for the IBD account, add the interest in Vault to keep your ledger accurate.

To receipt interest:

  1. Go to: A property profile
  2. Click the Financials tab > IBD
  3. Click Receipt Monies
  4. Select Receipt Type: Interest
  5. Enter the interest amount
    Receipt-monies.png
  6. Click Save

The ledger balance should now match your IBD bank statement.

Close an IBD account

When closing an IBD account, use the Sale Transfer button to move funds:

  • Transfer to the Sales Trust Account for payout, or
  • Transfer to Other and enter the recipient details
Note: There is no reconciliation account for an IBD. Always ensure your ledger balance matches the bank statement.

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