The Regular Payments page allows users to set up multiple automatic regular payments from their Netwealth cash account to a nominated bank account. This guide covers how to access the page, how to add and remove regular payments, as well as details about the minimum cash requirement and insufficient cash.
This guide covers:
- Where do I find the Regular Payments page?
- How do I add a new Regular Payment?
- How does the payment frequency affect the minimum cash requirement?
- What happens if there is insufficient cash?
Where do I find the Regular Payments page?
The Regular Payment page exists under Transactions > Pay & Withdraw > Regular Payments.
When you first open the page, you will see all of the details of any existing regular payments as well as the "Add Regular Payment" button.
How do I add a new Regular Payment?
To add a new payment, click the "Add Regular Payment" button and fill in the details required as listed below:
- Withdraw from: Choose an option from the drop down. The drop down shows Wealth Accelerator accounts that are linked to the same username.
- Paid to: Choose from the registered bank accounts (read more on how to add a new bank account here).
- Payment Amount: This is the dollar amount that is required for the withdrawal from the Netwealth cash account to the nominated bank account.
- Next Payment Date: Choose from the calendar the date you want the payment to begin. Please note that this is the date that Netwealth will action the request, it may take 2-3 business days for your or your client's bank to deposit the funds into a respective account.
- Frequency: Select from the drop down list your choice of either weekly, fortnightly, monthly, quarterly, bi-annually or yearly.
- Transaction Description (Optional): An optional EFT description can be included with the payment.
If details of a regular payment need to be changed, you will need to delete the existing payment and add a new regular payment with the adjusted details. To delete a payment, click the trash icon on the very right-hand side of the panel of the relevant regular payment. Confirm that you wish to delete the regular payment.
How does the payment frequency affect the minimum cash requirement?
When you set up regular payments from your account, the system needs to make sure there’s enough cash available to cover those payments. The frequency of each payment (weekly, monthly, quarterly, etc.) determines how much money the system tries to “quarantine” or set aside as a minimum balance.
How does this work?
For each payment, the system will calculate the amount based on storing at a months' worth of payments.
Weekly payment: The system ensures there’s at least one month worth of weekly payments available.
Monthly payment: It keeps at least one month’s worth of that payment amount ready.
Quarterly payment: You will need to ensure that the cash is available each quarter, as the system will not store this for you.
If you have multiple payments with different frequencies, the system will try to keep enough cash for the next scheduled payment of each type. For example, if you have a weekly and a monthly payment, it will set aside enough for both the next weekly and the next monthly payment.
If the account doesn’t have enough cash for all scheduled payments, the system processes payments in order, it tries the largest payment first, then the next largest, and so on. If a payment can’t be made because there isn’t enough cash, it’s skipped and retried at the next scheduled date.
Why does frequency matter?
Higher frequency = more frequent checks: For weekly payments, the system checks every week if there’s enough cash for that payment. For monthly or quarterly, it checks at those intervals.
Larger, less frequent payments (like quarterly) require more planning: The system doesn’t hold back three months’ worth of cash for a quarterly payment; it just checks if there’s enough when the payment is due. If not, the payment is skipped, and the adviser or client needs to top up the account.Example:If you have a $100 weekly payment and a $1,000 quarterly payment: The system will always try to keep at least $100 available for the weekly payment.When the quarterly payment is due, it checks if there’s $1,000 available. If not, it skips that payment and tries again next quarter.Advisers are responsible for making sure there’s enough cash for less frequent, larger payments. The system won’t automatically hold back large sums for long periods, as that could tie up funds unnecessarily.
What happens if there is insufficient cash?
If a scheduled regular payment would cause the cash account balance to fall below $100.00, the payment will not be released. The account must retain $100.00 to ensure the minimum cash requirement of a regular payment is met. The adviser (or direct client) will receive a notification in the online activities dashboard confirming the payment was not made due to insufficient cash requirements.
In the case where there are multiple regular payments to be made on the same date, the payment with the largest amount will be paid first. If there is not enough cash for subsequent smaller regular payments, they will not be released and the adviser (or direct client) will receive a notification in the online activities dashboard.
If there are multiple regular payments and they are both the same amount, the one that was created earlier will be paid first.
If the client has been released from their adviser and we do not have KYC on file they will not be able to update the regular payments until KYC is provided.