Clarify Base and Adjustment Rate Types

[nils-work]

Description

The Product Deposit Rate Types and Product Lending Rate Types tables under Product & Account Components include all 'Base' and 'Adjustment' rate types in each respective table, and it may not be clear how these are expected to be used; individually or combined.

Area Affected

The Product Deposit Rate Types and Product Lending Rate Types tables under Product & Account Components.

Change Proposed

1. Split each table into 'Base' and 'Adjustment' types to more clearly convey the way they were expected to be used.
2. Provide guidance on rate usage for each section.
3. Add clarification in the Description field for Base rate types that are expected to apply to CRED_AND_CHRG_CARDS products only.

No other changes to the Value, Description or Use of additionalValue Field content is being proposed in this change.

Additional change considered but not proposed in this issue
The DSB have also considered including a clarification that adjustment rate values should be provided as either positive or negative RateString values corresponding to the product and rate type. For example -

• BONUS rates for a Deposit product should be positive values to sum with the Base, creating a higher effective rate.
• DISCOUNT rates for a Lending product should be negative values to sum with the Base, creating a lower effective rate.
• PENALTY rates for a Lending product should be positive values to sum with the Base, creating a higher effective rate.

As this could lead to a different interpretation of current implementations, this change may be covered in a subsequent Decision Proposal.

The proposed changes would alter the table formatting as demonstrated below.

---

Product Deposit Rate Types

Description of the usage of the depositRateType field as it applies to products.

Deposit Base rate types

A deposit product is expected to present a single Base rate corresponding to relevant selection criteria including the rate tiers and additionalValue, where applicable.

Value	Description	Use of additionalValue Field
FIXED	Fixed rate for a period of time	The period of time fixed. Formatted according to ISO 8601 Durations
FLOATING	A floating rate is relatively fixed but still adjusts under specific circumstances	Details of the float parameters
MARKET_LINKED	A rate that is linked to a specific market, commodity or asset class	Details of the market linkage
VARIABLE	A variable base rate for the product	NA

Deposit Adjustment rate types

A product may have zero, one, or multiple adjustment rates that are taken to apply to a Base rate.

Value	Description	Use of additionalValue Field
BONUS	A bonus rate available by meeting a specific criteria	A description of the criteria to obtain the bonus
BUNDLE_BONUS	A bonus rate obtained by originating a bundle instead of a standalone product	The name of the bundle
INTRODUCTORY	An introductory bonus that will expire after a set period	The period of time for the introductory rate. Formatted according to ISO 8601 Durations

Product Lending Rate Types

Description of the usage of the lendingRateType field as it applies to products.

Lending Base rate types

A lending product is expected to present a single Base rate corresponding to relevant selection criteria including the rate tiers and additionalValue, where applicable.

Card products may have two or more base rates, including CASH_ADVANCE and PURCHASE as they may apply to different transaction types within an account. The PURCHASE lendingRateType is considered the rate commonly applicable to a card.

Value	Description	Use of additionalValue Field
CASH_ADVANCE	Specific rate applied to cash advances from the account. This is expected to apply to products in the CRED_AND_CHRG_CARDS category only	NA
FIXED	Fixed rate for a period of time	The period of time fixed. Formatted according to ISO 8601 Durations
FLOATING	A floating rate is relatively fixed but still adjusts under specific circumstances	Details of the float parameters
MARKET_LINKED	A rate that is linked to a specific market, commodity or asset class	Details of the market linkage
PURCHASE	Specific rate applied to purchases from the account. This is expected to apply to products in the CRED_AND_CHRG_CARDS category only	NA
VARIABLE	A variable base rate for the product	NA

Lending Adjustment rate types

A product may have zero, one, or multiple adjustment rates that are taken to apply to a Base rate.

Value	Description	Use of additionalValue Field
BUNDLE_DISCOUNT_FIXED	A discount rate off the fixed rate obtained by originating a bundle instead of a standalone product	The name of the bundle
BUNDLE_DISCOUNT_VARIABLE	A discount rate off the variable rate obtained by originating a bundle instead of a standalone product	The name of the bundle
DISCOUNT	A specific discount rate that may be applied. A discount rate reduces the interest payable	Description of the discount rate that is applicable
INTRODUCTORY	An introductory discount that will expire after a set period	The period of time for the introductory rate. Formatted according to ISO 8601 Durations
PENALTY	A specific penalty rate that may be applied. A penalty rate increases the interest payable	Description of the penalty rate that is applicable

[biza-io]

Biza supports the documentation update but requests that the guidance be proposed in this issue so that the data holders can provide feedback that it does not conflict with their existing interpretations and inadvertently raise compliance concerns.

[nils-work]

Hi @biza-io
The guidance has been included in the proposed change above, under each sub-heading.

[perlboy]

Can a link be provided to the proposed changes please?

[nils-work]

Hi @perlboy
Changes are here - ConsumerDataStandardsAustralia/standards-staging@release/1.24.0...maintenance/585

[nils-work]

The changes to the tables described in this issue have been staged as part of the proposal resulting from Maintenance Iteration 15.

The DSB is proposing the additional change relating to a lending discount rate (being negative) be addressed as part of Decision Proposal 306. Any feedback would be welcome.

[nils-work]

Standards version 1.25.0 has now been published, incorporating this change.