Introduction to GIC Guarantee

The bank should be able to Input Guarantee Interest Rate for certain deposit products with the Rate Guarantee Period specified. The bank provides the guarantee on best interest rate available for the deposits.

Functionalities covered are:

• Ability to input a guarantee rate only for certain number of days prior to renewal of the deposit.
• The rate to be defaulted during renewal of deposit is decided based on the following condition:
  • If guarantee rate is higher than the effective rate then, guarantee rate is defaulted.
  • If guarantee rate is lesser than the effective rate, then, periodic rate is defaulted.
  • If guarantee rate is higher than the effective rate plus margin, then, guarantee rate is defaulted.
  • If guarantee rate is lesser than the effective rate plus margin, then, periodic rate plus margin is defaulted.
• Ability to input the guarantee rate field only the first time. If a rate is modified before renewal, User will get an override to that effect.
• On renewal, the guarantee rate is nullified for subsequent renewals.
• If the inputted rate guarantee and effective rate of the deposit condition are different, user will get an override to that effect.

The workflow for GIC Guarantee functionality is presented below: