Changing Share Type Dividend Rates

To access the Share Rate Change windows, under Administration on the Portico Explorer Bar, click Tools. On the Tools top menu bar, click Rate Changes, then click Shares. Click the Select Share Type down arrow to select the share type and click the green arrow.

Depending on the share type selected, the following windows can appear:

• The Share Rate Change - Date of Deposit to Date of Withdrawal window lets you change rates on accounts using the DOD/DOW method of dividend calculation.
• The Share Rate Change - Average Daily Balance window lets you change single and plateau dividend rates on accounts using the ADB method of dividend calculation for the current dividend period.

To calculate the annual percentage yield (APY) for a share type , complete the following steps:

1. Click the Select a Share Type down arrow to select the share type. The description of the share type appears in the APY Calculator group box.
2. In the Basic Calculation group box, enter the amount to base the calculation on in the Amount field. Length: 9 numeric.
3. Click the Begin Date down arrow to select the beginning date from the pop-up calendar or enter the date in MM/DD/YYYY format. System default is the teller effective date. The beginning date cannot be prior to the last dividend paid date as specified on the Share Profiles - Dividends tab.
4. Click the End Date down arrow to select the ending date from the pop-up calendar or enter the date in MM/DD/YYYY format. The ending date cannot be greater than one year in the future. System default is the next dividend paid date as specified on the Share Profiles - Dividends tab.The Number of Days field will display the number of days from the beginning date to the ending date that will be used in the calculation.
5. Click the Dividend Frequency down arrow to select how often Portico will pay dividends on the account. The valid options are: Monthly (only rate options 0, 5, or 6 are allowed), Quarterly (system default), Semi-annually, Annually and Term. The dividend dates should correspond with the dividend frequency.
6. Click the Compounding Code down arrow to select when Portico will compound dividends on the account. The valid options are: Daily (only used with dividend method C), Monthly, Quarterly, Semi-annually, Annually and Term. The compounding code will default to the dividend frequency from the share or certificate type profile. With the exception of Daily, the compounding code must equal the dividend payment frequency.
7. Select the Compound Dividends check box to compound dividends on the account.
8. Click the Dividend Method down arrow to select the method used to calculate dividends. The valid options are: Average Daily Balance (ADB) or Date-of-Deposit/Date-of-Withdrawal (DOD/DOW).
9. Click the Rate Option down arrow to select the method of determining the rate and balance for calculating dividends. The valid options are: 0 - Single/flat rate. This option must be selected if C (DOD/DOW) appears in the Dividend Method field. Plateau rates and balances are allowed with dividend calculation method C. System default. 5 - Split rates - Based on each eligible share balance in the dividend period. The appropriate plateau rate is multiplied by the portion of the balance within that plateau range. The Rate 1 field cannot specify 0.00. Also, rate option 5 is only valid if A (ADB) appears in the Dividend Method field. 6 - Single rate - Based on each eligible share balance during the dividend period.
10. In the Min Balance for Dividend field, enter the minimum share balance required to receive dividends. The minimum share balance from the Share Profiles - Dividends tab will appear in this field. Length: 8 numeric including decimal. The minimum share balance is not used in the calculation. If there is a value in this field, the Dividend Frequency field must specify M, and the Dividend Method field must specify A. If the member's average daily balance is less than the value in this field, the member will not receive a dividend for that period. To indicate the minimum daily balance to receive dividends on DOD/DOW share types, the Rate Option field must specify zero (0), the Rate 1 field must specify 0.000, and the Balance 1 field must be greater than zero (0). If the member's balance on a given day is not equal to or greater than the amount specified in the Balance 1 field, the member will not receive dividends for that day. All zeroes indicate no minimum balance is required. When calculating dividends, the system considers a negative balance the same as a zero balance. The valid value must be zero or greater.
11. In the Min W\D Balance field, enter the minimum required share balance. Length: 8 numeric including decimal. The minimum required share balance from the Share Profiles - Account Information tab will appear in this field. The minimum required share balance is not used in the calculation. The back-office cycle will not draw the share balance below this amount. Online withdrawals causing a share balance below this minimum amount will require an override teller. The valid value must be zero or greater.
12. For tiered dividend rates, in the Rate field, enter the dividend rate applied through the amount specified in the corresponding Balance field. Valid rates are 0 through 20.000 percent. Then, in the Balance field, enter the maximum balance amount to which the dividend rate applies. Balance amounts are whole dollars. On plateau dividends, the balances must be in ascending order. If this balance is zero, then the following rates and balances must also be zero. The Rate 1 field indicates a flat dividend rate, when the Balance 1 field is zero. If 5 appears in the Rate Option field, the Rate 1 field cannot specify 0.00.
13. Click Calculate. The Calculation Results group box will display the annual percentage yield (APY) and the total dividend/interest amount calculated based on the parameters specified. The APY is the projected annual earnings based on the deposit amount, the number of days in the dividend period or in the date range specified, and the dividend amount. TISA regulation allows a variance of .05 in the APY calculation. For example, assume you calculated an APY of 2.75 using Portico. If you used a business calculator and arrived at 2.71 or 2.79, the calculation results on both Portico and the business calculator would be considered accurate since they are within the .05 tolerance specified by TISA. The APY Range columns indicate the low end annual percentage yield (APY) and high end annual percentage yield (APY) calculated by the system for the rate and balance specified. The annual percentage yield will only display on shares with a Dividend Method of A or 5.

Click the printer icon to print the APY calculation. Click Apply to make the rate change, then click Save. Click Reset to clear the fields and re-calculate the share APY.

The following fields on the Share Rate Change windows allow you to change the dividend rates for a share type.

Field	Description
Single Rate Current	The current dividend rate applied to the share type for single flat rate dividends.
Single Rate New	The new dividend rate that will be applied to the share type for single flat rate dividends. Valid rates are 0.00 through 20.000 percent. Length: 6 numeric including decimal point Keyword: R0
Post in Next Back Office Cycle	To post the rate changes in the next back-office cycle on the date specified in the Dividend Post Date field, select the Post in Next Back Office Cycle check box. If left blank, the dividend rates are stored in the Pending Dividend Rate Changes group box on the Share Profiles - Dividends tab. The rate changes will post on the date specified in the Next Post field on the Share Profiles - Dividends tab.
Reverse this Rate Change Request	Select the Reverse this Rate Change Request check box to reverse a rate change completed on the same day.
Dividend Post Date	The date dividends will be posted.
Effective Date	The last date dividends will be calculated at the current rate(s). Dividends will be calculated at the new rate(s) on the first day after the effective date. Example: If you perform the Share Rate Change - Date of Deposit to Date of Withdrawal window with an effective date of Tuesday's date, Tuesday's back-office cycle will calculate the dividends through Tuesday's date, place this amount in the Accumulated Balance field on the Shares - General tab, and change the date in the Last Posted field on the Shares - General tab to Wednesday's date. The pending rate changes can be reviewed on the Share Profiles - Dividends tab. The message EFFECTIVE DATE IS THE LAST DAY AT THE OLD DIVIDEND RATE appears as a reminder of the importance of the effective date. You can specify an effective date up to 5 days in the future or any date in the past from the current date to the last dividend date on the Share Profiles - Dividends tab. Future Dating the Rate Change: The date in this field is the last date for which the current rate applies; therefore, you should specify the last day of the current dividend period when changing the rate effective the first day of the next dividend period. For example, you want to change the rate so that the new rate will take effect on 10/01/16. Sometime between 09/26 and 09/30, you would perform the rate change with an effective date of 09/30/16. If you use an effective date in the past, the system recalculates the dividends from the beginning of the current dividend period through the current processing date. Enter the last day of the previous dividend period when changing the rate effective the first day of the current period. Backdating the Rate Change: You can backdate the rate change for any date during the current dividend period. The date in the Effective Date field must be equal to or greater than the date in the Last Posted field on the Share Profiles - Dividends tab. The date in this field is the last date for which the current rate applies. Therefore, you should specify the last day of the previous dividend period when changing the rate effective the first day of the current period. For example, if you want to change the rate effective 09/01/16, and today is 09/15/16, you would specify 08/31/16 as the effective date. Note: When the Share Rate Change - Date of Deposit to Date of Withdrawal window is for the current or a future processing date, the system will change the Last Posted field on the Share Profiles - Dividends tab to the effective date of the Share Rate Change - Date of Deposit to Date of Withdrawal window during the nightly back-office cycle. However, when the Share Rate Change - Date of Deposit to Date of Withdrawal window is for a previous date, the system will change the Last Posted field to the current next processing date during the nightly back-office cycle. Keyword: ED
Plateau	The Plateau grid displays the current and the new dividend rates and corresponding maximum balance amounts to which the dividend rates apply.
Rate 1 - Rate 10	The dividend rates applied through the amounts in the Balance 1 through Balance 10 fields. Valid rates are 0 through 20.000 percent. Additional rate levels can be in ascending or descending order. Length: 6 numeric including decimal Keyword: R1, R2, R3, etc.
Balance 1 - Balance 10	The maximum balance amount to which the dividend rate in the Rate 1 through Rate 10 fields applies. On plateau dividends, the balances must be ascending. If a balance field is zero, then the following rates and balances must also be zero. Balance amounts are in whole dollars. For example, if the Balance 1 field is $20,000, then any balance up to $20,000.99 uses the dividend rate in the Rate 1 field. Length: 6 numeric in whole dollars Keyword: B1, B2, B3, etc.
Multiple Share Type Rate Maintenance	To apply the same rate changes to multiple share types, click the Copy rate changes to share type down arrow to select a share type and click Add. Repeat this process to add additional share types. Then, click Save. The share types specified will receive the same rate change on the designated effective date. Once you select a share type in the Select Share Type field, the Copy rate changes to share type drop-down list is populated with only the share types that can have a matching dividend method. If you are applying the same rate changes to multiple share types and the share types have tiered rates and balances, you must enter a rate and balance in the New field for each of the rate and balance fields in use. In addition, we recommend that the share types in the Selected shares for rate change grid do not have more tiered rates and balances than the share type in the Select Share Type field. For example, if the share type in the Select Share Type field uses three rates and balances, then the share types in the Selected shares for rate change grid should also use three rates and balances.

Click Save to save the rate change.