Navigation:  Deposit Screens > Definitions Screen Group > Rate Tiers Screen > Current Tiers field group

Mnemonics: TRCRTR, TRCRRT

 

Use this field group on the Rate Tiers screen to designate tier levels for the current rate tier being created/edited. Rate tiers influence the calculation of a customer account's interest rate by indicating any offsets that will be used based on the balance of the account. For example, your institution may want to pay more interest to accounts with a balance more than a specific limit, such as $5,000.00. You would set a Base Rate, but then you could set an Offset (mnemonic TRCRRT) amount of 2.0 for accounts with a Balance Limit (mnemonic TRCRTR) of more than $5,000.00. Therefore, if the Base Rate is 3.0000% and the account balance is more than $5,000.00, the system would apply the Offset percentage increasing the interest rate to 5 percent.

 

The Offset percentage can be negative or positive. For negative Offsets, enter a minus sign before the number. For positive Offsets, just enter the number. The Offset field takes up to five decimal points. If you enter less than five decimal places, the system back fills the percentage with zeros after you move out of the field. If you leave the Offset fields blank, the system assumes it is zero percent. See the example below.

 

 

Up to 10 tier levels can be set up for each rate tier. See the help for the Base Rate field on the Deposits > Account Information > Interest Fields screen for an example of how rate tiers influence the Base Rate.

 

If the When Entering Tier Offsets as Rates Enter Base Rate Here field is in use, the Offset fields will be reclassified as Rate fields and any designated Offsets will be added to the value in that field and automatically converted to Rate values. See help for that field to learn more about entering tier levels as rates rather than offsets.

 

Setting up an Offset-Based Rate Tier

 

Use the Balance Limit fields to indicate the maximum customer account balances for the tier levels. Offsets will correspond to their adjacent Balance Limit range and factor into the calculation of the customer account's Interest Rate (when the account balance falls within the range).

 

The Interest Rate on an account is calculated as follows:

 

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The first tier level will automatically be set as a range from $0.00 to the dollar value entered in the first Balance Limit field. Subsequent tier levels will be set as a range from the value entered in the previous Balance Limit field to the value entered in that tier level's Balance Limit field.

 

For example, if the customer account's Base Rate is 1.5% and your institution does not want the account to calculate interest if its balance is below $100.00, then the first Balance Limit field should be set to 99.99 with a corresponding Offset of -1.5. In this example, the rate on the account for balances under $100.00 will be zero. The next Balance Limit field could then be set to any dollar amount greater than 99.99 and Offset greater than -1.5 (200 and -1.0, for example).

 

 

Interest features for individual customer accounts can be adjusted on the Deposits > Account Information > Interest Fields screen as well as the Interest Fields field group on the Deposits > Account Information > Account Information screen (if you have the proper security). Simple rate pointers can also be set up using the Deposits > Definitions > Rate Table screen.

 

See also:

Creating New Rate Tiers