Change account type interest method

In this use case, we will explain how to change the account type interest method from fixed to floating.

Scenario

Suppose you have the current account type interest method set up with a fixed interest rate and now, you wish to switch to a floating interest rate.

To change the Account type interest method from a fixed to a floating interest rate involves two main steps.

1. Create a base rate and add a fixed value to it.

2. Configure and approve the adjusted Account type interest method.

We will use the scenario data in the tables below to explain the change process through an example.

Scenario data

Interest method main settings

Parameter	As is	To be
Method assignment code	ACCO_INT_SWEDEN	ACCO_INT_SWEDEN
Account type	CURRENCY	CURRENCY
Currency	SEK	SEK
Account holder type	Legal	Legal
Rate type	Fixed interest rate	Floating interest rate
Margin type	not applicable	Percentage of the base rate that is subtracted from the base rate

Interest conditions

Parameter	As is	To be
Default interest rate	3.25%	not applicable
Min interest rate	2.25%	not applicable
Max interest rate	4.25%	not applicable
Rate base	not applicable	Riksbank Reference Rate
Default margin rate	not applicable	40%
Min margin rate	not applicable	20%
Max margin rate	not applicable	60%
Start date	A past date	A future date, May of 1st in the current example