What Does it Mean if an Investment is Step Up Eligible?

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There is a field on my Investment Inquiry that says Step Up eligible. What does that mean?

If an investment shows as step up eligible, it means that the category it belongs to has been configured to be eligible for "step up". That means that investors can increase their interest rate over time. The step up function finds the current offering listed on the investment category, takes the current rate and makes it the investment rate on the investment.


In order to properly utilize the step up functionality, the high/low interest rate range on all investment types under a step up eligible category must be continuously modified.


When the investment matures, the step up fields are automatically reset.

To perform the Step Up function:


  • From the DDI Connect main menu, double-click Financial Services
  • Double-click Investments
  • Double-click Setup
  • Double-click Investment Category Maintenance You will see this screen:


Invest Cat Maint Step Up.png

The Step-Up count field allows you to set how many times an investor can Step-up their rate in the given time of the note, i.e., 1 time for a 12-month note, or 2 times for a 2-year note, etc.

To enter the Step-Up, simply click edit for the 'CERTS' or "DEMAND' screen, enter your number, and hit 'Save'.

In Addition:

1. The number of step-ups allowed is managed in the Investment Category:

Step-up 2.png


2. How clients generally handle this is that they allow their term notes the ability to step up one time during their term. The investor has to connect with them, and they then would get that in writing and go to the Investment. From here, you would go to View> Actions> StepUp (this will be greyed out if step-up is not available for the Investment- you can also see if they are eligible at the bottom of the screen):

Step-up 3.png


3. You will then be able to verify the information for the step-up and click "OK".

Step-up 4.png 




    4.  The information at the bottom of the screen would then reflect the step-up date and uncheck the eligible step-up box:

    Step-up 5.png  

    5.  There is also a letter that can be produced to show the details of the step-up if desired 

    6.  At maturity, the step-up eligible will reset if they mature into a category with step-up available.
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