Investment Tiered Rate Maintenance
Overview of IL283
DDI-Connect can accommodate tiered interest rates for specified investment types. In this conditional rating method, the rate the investor receives is dependent upon the amount of the investment, with larger investments eligible for better returns. Tiered rating uses the base rate defined for the investment type (in Type and Rate Maintenance) and adds on a differential factor to produce an effective rate for a certain investment level.
NOTE: When configuring tiered rates for an investment type, please note that you will NOT be able to edit the interest rate when adding a new investment of this type. All interest rate levels are configured based on the information you enter here and the base information set up within the category.
To configure tiered rates:
- From the DDI Connect main menu, double-click Financial Services
- Double-click Investments
- Double-click Setup
- Double-click Investment Tiered Rate Maintenance. You will see a screen similar to this one:
To add a new tiered rate, click the Add button on the toolbar. The fields will now activate for editing:
You have the following options:
| Field | Description |
|---|---|
| Inv Type | Enter the code for the investment type, or click the list icon to select from a list of active investment types within the system |
| Investment Minimum | Enter the minimum investment amount needed for investors to qualify for this interest rate |
| IRA Minimum | Enter the minimum IRA investment amount needed for investors to qualify for this interest rate |
| Rate | This is the rate differential that is added to the base interest rate for investors who qualify for this tier. For example, if this tier should add .25% to the base interest rate, enter .25 |
| Base Rate | This is the interest rate specified in Investment Type and Rate Maintenance for this investment type. It is a display only field |
| Effective Rate | This field displays the sum of the base rate + the interest rate for this tier, and is a display only field |
When you have entered the needed information, click Save to retain the new tier.
