Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
Loading...
In this use case we will explain and illustrate how to change account type interest conditions for all accounts to adapt to the general interest rate change on the market.
Suppose you have set up the account type interest method for currency accounts using the fixed interest rate settings shown in the As is column of the table below.
However, the interest rate level in the market has decreased, and you want to adjust your interest conditions to the values shown in the To be column of the table below.
You want to apply the adjusted interest conditions to all accounts to keep consistent interest terms for all clients.
Default interest rate
3.75%
3.25%
Min interest rate
2.95%
2.5%
Max interest rate
4.75%
4.15%
Start date
A past date
A future date,
April of 21st in the current example
The changed account type interest condition will function as shown below.
To make the intended change to the account type interest conditions, follow the steps below.
Go to Accounts > Pricing > Account type interest.
Fill in the search parameters and click Search.
Find the Account type interest method in question and click the Account type interest method ID to access the method details page.
Fill in new parameters for interest conditions on the opened interest conditions edit view. As this example intends to adapt to the interest rate change on the market, then we select:
All accounts for the value of Accounts to which the interest applies and
Standard conditions for the value of Reason.
Click the Save button to save the new interest condition configuration.
To enforce the configured new interest conditions, you must approve them by clicking the Approve Conditions button.
Click on the Actions log link below the particular interest condition ID to view its full status and validity history.
To follow the progress of the interest condition change process, click on the Interest action history link at the top of the content page.
The click opens the modal, and you can view the complete history of interest actions.
Before the interest condition change date, you will notice the new Interest condition created with ID-000000001027. The Application rule set for All accounts plays a pivotal role here, as it initiates the Mass change with ID-000000001013. The Status code is marked as INSERTED, and the Completed date-time is left blank, indicating that the change is yet to occur.
Once the interest condition change date has passed, the mass change Status code becomes PROCESSED, and the Completed date-time displays the exact moment when the actual condition change occurred.
On the Account type interest methods page, scroll down to find the section for Interest conditions. Click the copy icon next to the interest condition you want to change.
In this use case, we will explain how to change the account type interest method from fixed to floating.
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.
Create a base rate and add a fixed value to it.
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.
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
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
In this use case we will explain and illustrate how to change account type interest conditions for only new accounts to adapt to the general interest rate change on the market.
Suppose you have set up the account type interest method for saving accounts using the fixed interest rate settings shown in the As is column of the table below.
However, the interest rate level in the market has decreased, and you want to adjust your interest conditions to the values shown in the To be column of the table below.
You want to apply the adjusted interest conditions to the new accounts only because you want to keep the As is interest terms for existing accounts.
The changed account type interest condition will function as shown below.
To make the intended change to the account type interest conditions, follow the steps below.
Go to Accounts > Pricing > Account type interest.
Fill in the search parameters and click Search.
Find the Account type interest method in question and click the Account type interest method ID to access the method details page.
Fill in new parameters for interest conditions on the opened interest conditions edit view. As this example intends to adapt to the interest rate change on the market, then we select:
New accounts for the value of Accounts to which the interest applies and
Standard conditions for the value of Reason.
Click the Save button to save the new interest condition configuration.
To enforce the configured new interest conditions, you must approve them by clicking the Approve Conditions button.
Click on the Action log link below the particular interest condition ID to view its full status and validity history.
To follow the progress of the interest condition change process, click on the Interest action history link at the top of the content page.
The click opens the modal, and you can view the complete history of interest actions.
Before the interest condition change date, you will notice the new Interest condition created with ID-000000001028. The Application rule set for New accounts does not initiate the mass change. Therefore, the Mass change ID, the Status code and the Completed date-time are left blank to indicate no mass change will occur.
After the interest condition date change, you notice the Mass Change ID, Status Code, and Completed Date-Time fields remain blank, indicating no mass change has occurred. Notably, the new rate has not been applied to the existing accounts.
To reconfigure the account type interest method from fixed to floating, you must first:
It is a mandatory precondition for the successful completion of the process. Therefore, make sure to complete it before attempting to adjust the account type interest method.
To make the intended change to the account type interest method, follow the steps below.
Go to Accounts > Pricing > Account type interest.
Fill in the search parameters and click Search.
The following list contains the main interest settings that must be left unchanged on the New account type interest method page.
Method assignment code,
Account type,
Currency,
Account holder type.
Adjust the following main interest settings on the New account type interest method page.
Select Floating interest rate for the value of Rate type,
Select Fixed percentage that is subtracted from the base rate margin type for the value of Margin type,
Enter the Validity start date,
Select All accounts for the value of Accounts to which the interest applies and
Standard conditions for the value of Reason.
Select the Rate base value and enter the following interest conditions parameters.
Select the Rate base value,
Set the Default margin rate value to 40%,
Set the Min margin rate value to 20%,
Set the Max margin rate value to 60%.
Click the Create new account type interest button and the Yes button in the confirmation modal.
Click the Approve method button to approve the method change.
To follow the progress of the interest condition change process, click on the Interest action history link at the top of the content page.
The click opens the modal, and you can view the complete history of interest actions.
Before the interest method change date, you will notice the new Interest method created with ID-000000001021. The Application rule set for All accounts plays a pivotal role here, as it initiates the Mass change with ID-000000001014. The Status code is marked as INSERTED, and the Completed date-time is left blank, indicating that the change is yet to occur.
Once the interest method change date has passed, the mass change Status code becomes PROCESSED, and the Completed date-time displays the exact moment when the actual method change occurred.
On the Account type interest methods page, scroll down to find the section for Interest conditions. Click the copy icon next to the interest condition you want to change.
and
.
Adding a new base rate type is available only over the API. To create a new base rate type with the instant rate application rule, follow the steps of .
To add the fixed value for the base rate you created, follow the instructions in .
To understand how the rate fixing is automatically applied once you have changed the account type interest method from fixed to floating, read .
Find the Account type interest method you want to change and click the copy icon at the end of it.
Default interest rate
4.75%
3.95%
Min interest rate
4.25%
3.45%
Max interest rate
5.25%
4.45%
Start date
A past date
A future date,
April of 21st in the current example
You can follow the progress of the account type interest method change by going to the account type interest methods search page and searching for the changed method. The updated method will be visible next to the existing method, with an amber validity indicator displayed before the validity range dates.
The colour of the validity range status indicator on the search result page changes from green to red and from amber to green as the validity period progresses.
There are many reasons the need to change interest rates applied to the accounts might appear. Change in the general economic conditions or competitors' behaviour is the most common to mention.
In this guide, you will learn how to change the account type interest method and interest conditions. We will explain three use cases and illustrate examples of how to:
to adapt to the interest rate change on the market.
to adapt to the interest rate change on the market.
from fixed to floating.
