What is an IBD account?
An Interest Bearing Deposit account is a joint account often between the Seller & Buyer. The sale deposit is invested for a short term at a high interest rate. VaultRE offers the ability to manage your IBD (Interest Bearing Deposit) accounts for each property.
If you do not have the below options to access and setup an IBD account, please reach out to the support team via the support request menu.
Contents:
Step by step
Setting up an IBD account against a property/sale
1. Navigate into an example property > Financials tab > IBD
2. Click Create IBD Account and enter the details as per the bank account that are provided to you from the bank when the IBD has been activated, then click Save
3. Once you have set up the IBD account, you are then able to receipt money or interest, deduct charges or transfer money out of the account. If the deposit has been received directly into the IBD account, please click on Receipt Monies to record this information
Additional information
If the deposit has been received into the Sales Trust Account, you would initially receipt this into the Sales Trust Ledger & use the 'Sale Transfer' button on the IBD area to record the funds being transferred into the IBD account (and vice versa).
Select Transfer From: SALES TRUST ACCOUNT
Transfer to: IBD
Receipting Interest into VaultRE
When you receive the bank statement for the IBD account you will need to add the interest in VaultRE. This should be completed each time you receive a statement.
To enter the Interest amount received, click on the Receipt Monies button on the IBD ledger:
The Receipt Type can be selected as Interest
You can now see the interest has been added to the ledger balance. The total on the ledger balance should match the total of your IBD bank statement.
When you are ready to close an IBD account you are able to transfer the funds using the Sales Transfer button. This will allow you to either transfer the funds to the Sales Trust Account and then payout accordingly or Pay out to 'Other' and send the funds directly to someone by entering the recipient.
There is no reconciliation account for an IBD so it's important to ensure your ledger balance matches the bank statement.