Did you know you can easily and instantly make interest rate updates using the Episys interest rate change feature? The Federal Reserve changes interest rates at various times during the year. If changes aren’t made in Episys reflecting these updates, it could result in challenges for your back-office team. Members could be billed at a higher rate for loans that are tied to prime rate, such as HELOCs, necessitating the need to provide refunds to members.
“At Synergent, we sometimes get calls from credit unions on the first of the month if a rate did not change as expected,” shared Amy Keaten, Product Owner at Synergent. “While our team is always happy to help, this can be stressful for the credit union to have to take additional steps to provide refunds to members or to credit impacted loans. By completing the updates using the Episys interest rate change feature, credit unions can save time and provide members with the best possible service.”
Timely Updates Are Important
When the Federal Reserve announces interest rate changes, it impacts your ledger. Rates should be updated as soon as possible upon learning of any changes but must be completed before the last day of the month. Failure to update rates accordingly may cause challenges requiring refunds to members.
If you know a rate change is scheduled, the Episys interest rate change feature allows for future dating. You do not need to wait for the date to pass to update your core!
Using the Episys Interest Rate Change Feature
Modifying interest rates in Episys can be completed in just a few easy steps by your credit union’s staff. No waiting and the rates can be changed as soon as it is convenient for your team!
Within Episys, use the following procedure to modify an existing interest rate:
- In Parameter Manager, select Interest Rate Index Parameters from the drop-down field at the top of the window.
- When the Interest Rate Index Parameters window opens, select the applicable index type.
- When the Interest Rate Index Parameters section of the screen pane opens to the right-hand side of the window, do the following:
- From the listing in the Index Rates section of the pane, determine the date and rate that need to be modified, then enter the new effective date in the Effective Date field. Enter the new interest rate in the Interest Rate field. Then press the Enter key.
- Click the box to the right of Add to save the new effective date and rate in the Index Rates section of the pane:
- Click OK to save your changes.
Synergent Customer Service is here for you. Contact us if you need further assistance updating your interest rate indexes, or if you have questions about the Episys interest rate change feature.