Set Account Dividend Rates

The Account Dividend Rate determines the rate of return your members receive on their Extended Insurance Accounts. These rates can be set or updated directly through the Admin Portal. To begin, click the Manage Program button and select Set Account Dividend Rates from the dropdown menu.

You can choose to apply a dividend rate change to all accounts in your program or to an individual account:

• Selecting For all accounts applies the new rate across every depositor account in your ModernFi program.
• Selecting For an individual account allows you to specify a particular account ID from the dropdown, enter a new dividend rate, and submit the change.

After submission, a Pending Request will appear in the Requests table confirming that the update has been received and is being processed.

ModernFi supports several types of dividend rate structures—fixed, floating, and tiered—allowing your institution to tailor pricing strategies based on your goals and member base.

Fixed Dividend Rates

A Fixed Rate applies a static dividend rate to an account and can be set using one of two calculation methods:

• Nominal Rate: The stated annual dividend rate that does not include compounding.
• APY (Annual Percentage Yield): The effective annual rate that reflects monthly compounding.

Fixed rates are ideal for institutions seeking predictable, stable returns across all member accounts.

Floating Dividend Rates

A Floating Rate allows you to set a variable rate that moves with the market. This rate is based on a nominal spread to a range of indices, enabling your credit union to align member yields with prevailing interest rate conditions. To set a floating dividend rate against an index, select Floating Rate from the Rate Structure dropdown, then choose to select from either Market or Custom Indices. You will be prompted to fill in three fields, corresponding to the following rate formula: (Index Rate x Percentage) + Spread = Rate Earned.

• Index Rate: Select from a dropdown of available indices
• Percentage: The desired percentage of the market index rate that you would like the account rate to track against
• Spread: The fixed spread applied to the percentage-adjusted index

Currently, ModernFi supports the following Market Index Rates:

• Median EFFR (Effective Federal Funds Rate)
• Federal Funds Target - Upper and Lower Limits
• CME SOFR 3, 6, 9, and 12 month
• WSJ Prime Rate
• Custom Rate Indices (more detail below)

Additional indices, including 3-month CMT and Fidelity money market fund yields are in-process and should be available for use soon.

To set a custom index, click the Manage Program button and select Add Custom Index. After providing the name, description, and rate, this custom index will be available to select from the dropdown. Each of these fields can be managed in the Custom Indices tab by hovering over the index in question and selecting the Edit button; any changes made will impact all accounts tied to the index. Indices can also be deleted, but only when there are no active associated accounts.

Index rates are displayed and calculated as nominal interest rates, and update daily in-line with the release of the prior day’s data.

Tiered Dividend Rates

A Tiered Rate structure supports dynamic pricing by applying different dividend rates based on account balances held within the network. Tiered rates can be created for both new and existing accounts, and existing tier structures can be reused for consistency across programs.

To set tiered rates for new accounts:

1. Click Manage Program → Add Single Account.
2. From the Select Rate Structure dropdown, choose Tiered Rates.
3. Select Create New Tiers, then choose whether to set rates as Nominal or APY.
4. Define your balance tiers:
   1. Tier 1: Rate for balances from $0 up to the Tier 1 maximum.
   2. Tier 2: Rate for balances from the Tier 1 maximum up to the Tier 2 maximum.
   3. Use Add Tier to continue creating additional tiers.

The final tier’s maximum balance will automatically be set to “unlimited,” ensuring all balances are covered. The system includes checks to confirm that each subsequent tier offers a higher dividend rate than the previous one.

Tiered rates can also be applied to existing accounts or replicated from prior tier structures for efficient setup.

You can choose to apply a dividend rate change to all accounts in your program or to an individual account:

• Selecting For all accounts applies the new rate across every depositor account in your ModernFi program, excluding those that are currently in a Pricing Group.
• Selecting For an individual account allows you to specify a particular account ID from the dropdown, enter a new dividend rate, and submit the change. If an account is currently in a Pricing Group, it must be removed before you can adjust its dividend rate individually - all Pricing Group accounts will not display in the dropdown.