Setting floating dividend rates

Program administrators can set Extended Insurance Account Dividend Rates based on a floating - or indexed - structure. This variable rate is set based on a nominal spread to the Median Effective Federal Funds Rate.

To set a Floating Rate to member account(s), click the Manage Program button and select "Set Account Dividend Rate," then choose if you would like to set the rate for all accounts or specific accounts. If you are setting the rate for a specific account, you will need to specify that account in the "Account Title" field.

Choose "Floating Rate" from the "Select Rate Structure" dropdown. In the "Spread to Median EFFR" field, input the nominal percentage point spread that you'd like to maintain against the Effective Federal Funds Rate (e.g., entering -1.00% will pay your member 100 bps less than the current EFFR).