Linking Primary and Secondary accounts

When the Primary and Secondary Accounts are linked the balances of the two accounts are affected in the following ways.

• If, in any one year, the balance of the Primary Account would exceed its original opening value, then the excess amount is transferred to the Secondary Account. In the real world we would not normally allow a large sum to build up in a low interest or zero interest account when higher yielding investments are available.
• If, in any one year, the balance of the Primary Account would fall below its original opening value, then the balance is' topped-up', by transferring funds from the Secondary Account (if sufficient funds exist in that account). This is simply to ensure that the Primary Account does not become unnecessarily overdrawn, causing us to pay interest on the overdraft.

As a result of this attempt to maintain the balance of the Primary Account at its opening value, when accounts are linked, the chart for the Primary account will normally show a 'flat' profile:

- unless Expenditure exceeds the combined income of both accounts, in which case the balances of both accounts will gradually fall:

Note: If Inflation is ON then the Primary Account chart profile will only be 'flat' when Todays Values is also ON. This is because, when there is any inflation, an account which maintains its original real value will need to compensate for the currency's loss in value over time, by increasing its nominal value.