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Customer Interest Rate Management

The Sending Institution sets the Customer Interest Rate payable to their Customers for Customer Funds which are maintained in Program Accounts at Receiving Institutions under the DDM Program in accordance with the terms set forth in the Services Agreement.

Overview

Sending Institutions must establish defined Rate Identifiers within the DDM Program by completing the DDM Program - Customer Interest Rate Set-Up Form.

  • For Bank/Credit Union Clients: Defined Rate Identifiers are typically a 2-character code referred to as a Rate Set ID (ex: T1) and transmitted via the Account Registration File.

  • For Trust Company Clients: Defined Rate Identifiers are typically a Product Identifier that mirrors the pattern of a typical "CUSIP" (ex: RNTDDM001) and transmitted via the Transaction File.

Customer Interest Rates can be configured as either flat, tiered by balance ranges, or tied to a floating index (+/- a variance).

There are two primary channels within the DDM Program by which a Sending Institution can manage their Customer Interest Rates.

Customer Interest Rate Management via File

Sending Institutions that utilize the DDM Program through an automated interface create defined identifiers on their software providers platform (Core Processor/Trust Accounting Platform) to manage their Customer Interest Rates. These identifiers are transmitted via the Account Registration File or Transaction File and are mapped to specific Customer Interest Rates within the DDM Program.

Customer Interest Rate Management via Core Processors

The Rate Set Identifier is established on the core by the Sending Institution (ex: T1). The Sending Institution assigns the identifier to the appropriate customer accounts on their core and transmits via the Account Registration File. If the Sending Institution wants to change the Rate Set Identifier on a customer account, they would do so by establishing another Rate Set Identifier (ex: T2) and passing along the changed Rate Set Identifier on the Account Registration File for that specific customer account record (ex: today’s file has T1 for account # 123456, tomorrow’s file has T2 for account # 123456). This change takes effect on the day the Account Registration File is received and processed by R&T.

Note: Any change to the mapping of the Customer Interest Rate assigned to the Rate Set Identifier must be submitted to the DDM OPS team via email ([email protected]) by completing the DDM Program - Customer Interest Rate Set-Up Form.

Customer Interest Rate Management via Trust Accounting Platforms

The Rate Set Identifier is established on the trust accounting platform as a Product Identifier (ex: RNTDDM001). The Sending Institution uses that Product Identifier to transact on the customer account. Deposits and withdrawals are transmitted for the customer using that Product Identifier via the Transaction File. If the Sending Institution wants to change the Product Identifier on a customer account, they would do so by establishing another Product Identifier (ex: RNTDDM002), entering a withdrawal for the existing Product Identifier (RNTDDM001) and a deposit for the new Product Identifier (RNTDDM002). Those transactions would be received on the next Transaction File and the change would take effect on the day the Transaction File is received and processed.

Note: Any change to the mapping of the rate assigned to the Product Identifier must be submitted to the DDM OPS team via email ([email protected]) by completing the DDM Program - Customer Interest Rate Set-Up Form.

Customer Interest Rate Management via Customer Access Portal (CAP)

Sending Institutions that do not use the DDM Program through an automated interface or prefer the ability to define custom Customer Interest Rates can use the Tier Override module on the Customer Access Portal (CAP).

→ See: Tier Override Module: Rate Management for how to define custom Customer Interest Rates using the Tier Override module in CAP.


Updated 18 days ago

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