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.

InterestRateCode Elements/Attributes
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
Yes: skip February 29th.
No:include February 29th.

<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>
 

 

 

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