Create interest plans to define how interest is calculated and applied to products. You can create the following interest plan types:

• Fixed—The interest rate remains the same for the entire investment term or for a defined portion of it.
• Floating—The interest rate changes with market conditions and is tied to a benchmark rate. Floating interest plans are sometimes called variable interest plans.

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Interest plans are defined at the organization level only.

For more information, refer to Interest-bearing accounts.

From Control Center, you can do the following:

• View interest plans
• Create an interest plan

View interest plans

To view the list of interest plans, do the following:

• From the main menu, select Configurations > Interest plans.
  The Interest plans screen displays.

Refer to the following table for a description of the columns.

To view a specific interest plan, do the following:

1. From the main menu, select Configurations > Interest plans.
2. On the Interest plans screen, select an interest plan.
   The Interest plan details screen displays, divided into the following tabs:

• Plan overview—View key information about the interest plan.
• Interest rate & tiers—View the plan’s interest rate and type and configuration details for interest by tiers. If you didn’t configure interest by tiers, no interest by tiers information is shown.
• Interest thresholds—View configuration details for interest thresholds. If you didn’t configure interest thresholds, no interest threshold information is shown.

Create an interest plan

To create an interest plan, do the following:

1. From the main menu, select Configurations > Interest plans.

2. On the Interest plans screen, select Create interest plan.
   Note: Tooltips are included next to some steps. If you need help, hover over them for additional information.

3. On the Plan details screen, do the following:

   1. In Name, enter a unique name for the interest plan.
      The name can have a maximum of 200 characters.
   2. In Start date, select the date when the interest plan becomes active.
   3. In Accrual basis, select how interest is calculated over time.
   4. In Accrual frequency, select how often interest accrues.
   5. In Capitalization frequency, select how often interest is applied to the balance.
   6. From Currency, select the interest plan's currency.
   7. In Interest type, select the accrual calculation method.
   8. Select Next.

4. (Optional) On the Processing code screen, select a fee model processing code, and select Next.

   Note: You can only apply one fee model processing code to an interest plan.
   For more information on fee models and processing codes, refer to the following guides:

   • Fee models
   • Processing codes

5. On the Rate type screen, do one of the following:

   • To create a fixed rate interest plan, select Fixed. In Fixed interest rate, enter the annual interest rate for the plan.
   • To create a floating rate interest plan, select Floating, and do the following:
     1. In Benchmark, select a benchmark market index rate.
        Note: The DI benchmark is available only if you selected BD/252 as the accrual basis on the Plan details screen.
     2. In Margin rate, enter the plan's margin rate.
     3. (Optional) In Margin, enter the plan's margin. If you don't want to add a margin, leave the field blank.

6. Select Next.

7. (Optional) On the Interest by tiers screen, do the following:

   1. In Tier type, select the format you want to base your tiers on.
   2. In Tier calculation, select how interest is applied when a balance moves into a new tier.
      The Tiers section displays.
   3. In the Tiers section, create your interest by tiers configuration.
      Note: You can add a maximum of two tiers, and you can delete a tier by selecting the trash icon ().
      Fixed rate plans use the fixed interest rate, and floating plans use the margin rate.
   4. Select Next.

8. (Optional) On the Interest thresholds screen, do the following:

   1. In Cap threshold, enter the maximum rate allowed before the cap effective rate is triggered.
   2. In Cap effective rate, enter the rate to apply when the cap threshold is reached.
   3. In Floor threshold, enter the minimum rate allowed before the floor effective rate is triggered.
   4. In Floor effective rate, enter the rate to apply when the floor threshold is reached.
   5. Select Next.

9. Review your interest plan details.
   If you want to make changes, select Back until you reach the required page.

10. Select Create.
    Your interest plan is created and added to the list of interest plans.