Methods and systems for providing an investment instrument with periodic principal payments

• US 7,835,962 B1
• Filed: 10/10/2006
• Issued: 11/16/2010
• Est. Priority Date: 10/10/2006
• Status: Active Grant

• Current Assignee: United Services Automobile Association
• Original Assignee: United Services Automobile Association
• Inventors: Sandoval, Christopher Andrew
• Primary Examiner(s): Poinvil; Frantzy
• Application Number:
  US11/548,205
• Time in Patent Office: 1,498 Days
• Field of Search: 705 10- 44
• US Class Current: 705/35
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A method of providing an investment instrument with periodic principal payments. The method includes calculating an interest amount using a current holding amount and a current interest rate; adding the interest amount to the current holding amount to form a new holding amount; determining if the new holding amount is at least at an agreed-upon level; decreasing the current interest rate if it is determined that the new holding amount is not at least at the agreed-upon level; receiving a deposit from a customer; and adding the received deposit to the new holding amount to yield a new current holding amount. The customer is under a contractual agreement to make a series of periodic deposits over a term of the investment instrument.

Claims

1. A method of a server providing an investment instrument with periodic principal payments, the method comprising the server having a processor performing the steps of:

(a) electrically calculating an interest amount using a current holding amount and a current interest rate;

(b) electrically adding the interest amount to the current holding amount to form a new holding amount;

(c) electrically determining if the new holding amount is at least at an agreed-upon level;

(d) electrically decreasing the current interest rate if it is determined that the new holding amount is not at least at the agreed-upon level;

(e) electrically receiving a deposit from a customer; and

(f) electrically adding the received deposit to the new holding amount to yield a new current holding amount; and

(g) wherein the customer is under a contractual agreement to make a series of periodic deposits over a term of the investment instrument.

2. The method of claim 1, wherein the investment instrument is a certificate of deposit.

3. The method of claim 1 further comprising determining if a term of the investment instrument has ended.

4. The method of claim 3, comprising repeating steps (a)-(e) if it is determined that the term of the investment instrument has not ended.

5. The method of claim 1, further comprising increasing the interest rate if the new holding amount exceeds a predetermined bound.

6. The method of claim 1, further comprising withdrawing accumulated interest by the customer during the term of the investment instrument.

7. The method of claim 1, wherein after an initial deposit, the series of periodic deposits is made automatically.

8. A system for providing an investment instrument with periodic principal payments, the system comprising:

a terminal receiving a deposit from a customer; and

a server in communication with the terminal, the server;

(a) calculating an interest amount using a current holding amount and a current interest rate;

(b) adding the interest amount to the current holding amount to form a new holding amount;

(c) determining if the new holding amount is at least at an agreed-upon level;

(d) decreasing the current interest rate if it is determined that the new holding amount is not at least at the agreed-upon level;

(e) receiving the deposit from a terminal; and

(f) adding the received deposit to the new holding amount to yield a new current holding amount;

wherein the customer is under a contractual agreement to make a series of periodic deposits over a term of the investment instrument.

9. The system of claim 8, wherein the investment instrument is a certificate of deposit.

10. The system of claim 8, wherein the server is further adapted to determine if the term of the investment instrument has ended.

11. The system of claim 10, wherein if it is determined that the term of the investment instrument has not ended the server is further adapted to repeat steps (a)-(e).

12. The system of claim 8, wherein the server is further adapted to increase the interest rate if the new holding amount exceeds a predetermined bound.

13. The system of claim 8, wherein the server is further adapted to:

withdraw accumulated interest during the term of the investment instrument; and

pay the accumulated interest to the customer.

14. The system of claim 8, wherein after an initial deposit, the series of periodic deposits is made automatically.

15. An article of manufacture for providing an investment instrument with periodic principal payments, the article of manufacture comprising:

at least one computer readable medium; and

processor instructions contained on the at least one computer readable medium, the processor instructions configured to be readable from the at least one computer readable medium by at least one processor and thereby cause the at least one processor to operate as to;

(a) calculate an interest amount using a current holding amount and a current interest rate;

(b) add the interest amount to the current holding amount to form a new holding amount;

(c) determine if the new holding amount is at least at an agreed-upon level;

(d) decrease the current interest rate if it is determined that the new holding amount is not at least at the agreed-upon level;

(e) receive a deposit from a customer;

(f) add the received deposit to the new holding amount to yield a new current holding amount; and

wherein the customer is under a contractual agreement to make a series of periodic deposits over a term of the investment instrument.

16. The article of manufacture of claim 15, wherein the investment instrument is a certificate of deposit.

17. The article of manufacture of claim 15, wherein the processor instructions are further configured to cause the at least one processor to operate as to determine if the term of the investment instrument has ended.

18. The article of manufacture of claim 17, wherein if it is determined that the term of the investment instrument has not ended the processor instructions are further configured to cause the at least one processor to operate so as to repeat steps (a)-(e).

19. The article of manufacture of claim 15, the processor instructions are further configured to cause the at least one processor to operate so as to increase the interest rate if the new holding amount exceeds a predetermined bound.

20. The article of manufacture of claim 15, wherein the processor instructions are further configured to cause the at least one processor to operate so as to:

withdraw accumulated interest during the term of the investment instrument; and

pay the accumulated interest to the customer.

21. The article of manufacture of claim 15, wherein after an initial deposit, the series of periodic deposits is made automatically.