As a difference from the base rate

Configuring margin type and default margin rate

Let's assume you would like the effective rate to be 2% less than the base rate. Then, you should make the following configuration selection:

  • Select the margin type value fixed percentage that is subtracted from the base rate,

  • Set the default margin rate value to 2%.

If the base rate value is 5%, then the applied effective rate will be 3.

It calculates 5 - 2 = 3.

Adding min and max margins

Minimum and maximum margin rates act as boundaries for manual adjustments to the effective rate. Let's assume you want to limit the manual adjustment of the effective rate difference from the base rate to 3% maximum and 1% minimum. Then, you should set:

  • Min margin rate to 1%,

  • Max margin rate to 3%.

If the base rate value is 5%, then the highest applied interest rate can be 4% and the lowest 2%.

They calculate respectively 5 - 1 = 4 and 5 - 3 = 2.

The feature to manually adjust the account's floating interest rate margin will be available in future releases.

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