Determining Interest Rate of BankingTermDepositAccount

[perlboy]

Request For Clarification

If the BankingAccountDetail returns with one or more BankingTermDepositAccount is there any way of identifying what interest rate is being paid on each of them? If BankingTermDepositAccount is a single tuple it seems possible to use depositRate and/or depositRates but this may be inaccurate for certain scenarios? For multiple tuples it doesn't seem possible unless one assumes they are all under the same rate or reverse engineers via lodgementDate and maturityDate as well as maturityAmount?

Is there an easier way of determining the interest rate of an individual term deposit particularly when there exists more than 1 of them on a single account?

[CDR-API-Stream]

Hi @perlboy, the support for the depositRates array came through a change request from the banks. At that stage, no request was made for different rates applicable to the one term deposit account. The assumption is that the same rate applies to all termDeposit instances.

The DSB would welcome any worked examples from the banks on their treatment of term deposits and clarification of the assumption before considering if a change is warranted to the standards.

[BH-UDA]

The original request to provide depositRates as an array to cater for multiple deposits within a single Term Deposit Account contained the scenario where each of these deposits could have different lodgment dates, maturity dates, maturity instructions and maturity amount.
In light of the comments raised in this issue this has been reviewed and the requirement should have included the identification of interest rate within each instance of the array as highlighted by @perlboy.
Within our product structure the interest rate to be applied to an individual deposit within the Term Deposit account may be conditional on investment amount and/or term.

[CDR-API-Stream]

Hi @BH-UDA would you be willing to submit a worked example for review to progress this issue?

[BH-UDA]

Hopefully the below simple example provides some clarity around the potential Term Deposit structures that may be generated within a single Term Deposit account.

An example Term Deposit Product is defined to allow for the following investment options:
Investment Periods: 1 Month to 6 Months
Investment Amount Tiering:
Up to $5,000 1.5%
Over $5,000 1.75%
Over $20,000 2.25%
Over $30,000 2.3%

Customer “A” opens a Term Deposit Account of the product type described above and:

1. Deposits $6,000 on 4th March for 3 Months with interest rate = 1.75% (Deposit 1)
2. Deposits $50,000 on 01 APR for 1 Month with interest rate = 2.3% (Deposit 2)

Array element Deposit 1 Deposit 2
Lodgement Date 4th March 2020 1st April 2020
Maturity Date 4th June 2020 1st May 2020
Maturity Amount $6,000.00 $50,000.00
Maturity Currency AUD AUD
Maturity Instructions Rolled Over Paid Out at Maturity
Interest Rate 1.75% 2.3%

Both Deposits comply with the term and amount options available within the product.
This scenario can be extended to the account having multiple additional investments with varying amounts, terms and interest rates along with differing maturity instructions.

[BH-UDA]

Hi, An example has been loaded into the GitHub issue #132. Thanks, Bob Humphries Business Analyst / Technical Writer Ultradata - Vision to Reality +61 3 9291 1600 www.ultradata.com.au<http://www.ultradata.com.au/>　 　 From: CDR API Stream [mailto:[email protected]] Sent: Monday, 30 March 2020 11:30 AM To: ConsumerDataStandardsAustralia/standards-maintenance Cc: Bob Humphries; Mention Subject: Re: [ConsumerDataStandardsAustralia/standards-maintenance] Determining Interest Rate of BankingTermDepositAccount (#132) Hi @BH-UDA<https://github.com/BH-UDA> would you be willing to submit a worked example for review to progress this issue? — You are receiving this because you were mentioned. Reply to this email directly, view it on GitHub<#132 (comment)>, or unsubscribe<https://github.com/notifications/unsubscribe-auth/AM57YXQEGKZ5JBF5ERRMDODRJ7RYHANCNFSM4KVUFJKQ>. This message contains privileged and confidential information intended only for the use of the addressee named above. If you are not the intended recipient of this message you are hereby notified that you must not disseminate, copy or take any action or place any reliance on it. If you have received this message in error please notify the sender immediately via return email. Any views expressed in this message are those of the individual sender, except where the sender specifically states them to be the views of the company.

[perlboy]

Preamble: Biza currently has 42 open issues within Standards Maintenance. In an effort to optimise our own backlog we are closing those which have no actual response from the DSB. They may be reopened at a later time or referenced when the issues are highlighted by third parties.

No further progress on this despite example uploaded by another participant. #184 appears to be related, closing this out of my backlog.

[nils-work]

Hi @perlboy
The DSB is proposing this issue be addressed as part of Decision Proposal 306. Any feedback would be welcome.

[nils-work]

Hi @perlboy, @BH-UDA

The termDeposit structure of Get Account Detail has been updated in the Candidate Standards for Banking to support rate detail for each deposit as noted in comments above (1, 2, 3).

Consultation on making the Candidate Standards binding is now open through Decision Proposal 338.