InterestRateCode
This Business Rule defines the type and details for the calculation of interest performed over fixed funds. Interest rate calculation methodologies can be assigned to fixed funds using the InterestRateCode Business Rule. In most cases, this rule is overridden on a specfic fixed fund (FundGUID).
Though InterestRateCalculations is introduced to expose the components that describe the attributes of the interest calculation of fixed funds, support Simple Fixed Interest , various leap year calculations and deposit and fund valuation, the existing rules for fixed interest calculation, InterestRateCode, InterestRateCriteria and GuaranteeInterestRateCode, will be maintained in order to maintain backward compatibility.
Element/Tag | Definition | Attribute | Element/Attribute Value and Description |
---|---|---|---|
<InterestRateCode> |
Required: Opening and closing tag for the rule. |
|
|
<ProcessCode> |
Required: Indicates the Interest crediting method that will be used to process code. |
|
Code: as defined in AsCodeFundType.
|
<InterestRate> |
Optional: Indicates the Interest Rate used in interest rate calculation. |
|
Decimal |
<AvoidLeapDays> |
Optional:Determines whether or not to avoid leap days. |
String |
|
<GuaranteedPeriod> |
Optional: Number of days guaranteed. |
|
Number |
<RateDescription> |
Optional: Description of the rate. |
|
String |
<LookupType> |
Optional: It can have values LOOKUP-IMPORT-RATE LOOKUP-RATE |
String |
|
<RateCriteria> |
Required: The criteria used to determine the rate.
|
|
String |
<BonusRateDescription> |
Optional: Provides the description of the bonus rate. |
|
String |
<BonusPeriod> | Optional: This determines the number of days contained in a bonus period. |
Number |
|
<DaysInMonth> |
Optional: It determines the number of days in month. |
|
Number |
ProcessCode Definition
The following table gives a brief description of each process code :
ProcessCode | Definition |
---|---|
07 | Fixed interest rate |
08 | Interest based on the various durations (money out and guarantee period) of the life of the deposit (optional bonus interest |
09 | Interest based on the various dates (money out and guarantee period) of the life of the deposit |
10 | Interest based on the deposit date |
11 | Same as 08 (without the optional bonus interest) however, this method also calculates MVA dates and rates |
12 | Same as 09, however, this method also calculates MVA dates abd rates |
13 | Interest based on rollover dates (rollover dates indicated in valuation) of the deposit (optional bonus interest) |
14 | Interest based on the various durations (money out and guarantee period) of the life of the policy |
XML Schema
<InterestRateCode>
<ProcessCode>Code</ProcessCode>
<InterestRate>Decimal</InterestRate>
<GuaranteedPeriod>Number</GuaranteedPeriod>
<RateDescription>String</RateDescription>
<LookupType>String</LookupType>
<AvoidLeapDays>Yes/No</AvoidLeapDays>
<RateCriteria>String</RateCriteria>
<BonusRateDescription>Strubg</BonusRateDescription>
<BonusPeriod>Number</BonusPeriod>
<DaysinMonth>Number</DaysinMonth>
</InterestRateCode>
XML Example
<InterestRateCode>
<ProcessCode>07</ProcessCode>
<InterestRate>10</InterestRate>
<GuaranteedPeriod>100</GuaranteedPeriod>
<RateDescription>Discritpion of the rate</RateDescription>
<LookupType> LOOKUP-RATE </LookupType>
<AvoidLeapDays>Yes</AvoidLeapDays>
<RateCriteria></RateCriteria>
<BonusRateDescription>Discription</BonusRateDescription>
<BonusPeriod>10</BonusPeriod>
<DaysinMonth>30</DaysinMonth>
</InterestRateCode>