# Recurring Deposit **Recurring Deposit Products** Recurring Deposit products define the rules, default settings, and constraints for a financial institution's recurring deposit offerings (a type of term deposit with recurring deposits). A recurring deposit product provides a template for multiple recurring deposit accounts for the financial institution's clients. The information required to set up a recurring deposit product includes: * Identifying some descriptive information * Terms * Settings * Charges * Accounting Beginning at the main screen, select [**Admin**](https://docs.mifos.org/mifosx/user-manual/for-administrators-mifos-x-platform/administration), then **Products** from the drop-down menu. This will launch the **Products** menu. Select **Recurring Deposit Products.** ![](https://mifosforge.jira.com/wiki/download/thumbnails/102629552/Capture%2044.PNG?version=1\&modificationDate=1484286972564\&cacheVersion=1\&api=v2\&width=1080) ### Now click on **Create Recurring Deposit Products** ### Details ![](https://mifosforge.jira.com/wiki/download/attachments/102629552/Capture%2045.PNG?version=1\&modificationDate=1484287079775\&cacheVersion=1\&api=v2) Please refer above **Image for** **Details,** Details mentioned below are updated with respect to the provided fields number's. * 1 - Provide Savings **Product name** . * 2 - Provide **Short name**. * 3 - Provide **Description** of this product. ### Currency ![](https://mifosforge.jira.com/wiki/download/attachments/102629552/Capture%2046.PNG?version=1\&modificationDate=1484287148890\&cacheVersion=1\&api=v2) * 4 - Select **Currency**. There is a need for one to have defined required currency: [Currency Configuration](https://docs.mifos.org/mifosx/user-manual/for-administrators-mifos-x-platform/administration/organization/currency-configuration) * 5 - Provide **Decimal places**. * 6 - Provide **Currency in multiples of**. This is to provide the total amount for rounding off. For example: 10, so Total amount gets rounded of to 10's. ### Terms ![](https://mifosforge.jira.com/wiki/download/thumbnails/102629552/Capture%2047.PNG?version=1\&modificationDate=1484287243182\&cacheVersion=1\&api=v2\&width=1080) * 7 - Provide **Default Deposit Amount** * 8 - Provide Minimum Deposit Amount * 9 - Provide Maximum Deposit Amount * 10 - Select **Interest compounding period.** For more information refer: [Savings Interest Calculation and Posting](https://mifosforge.jira.com/wiki/display/MIFOS/Savings+Interest+Calculation+and+Posting)\ Daily \ Monthly\ Quarterly \ Semi-Annual \ Annually * 11 - Select **Interest posting period** - Interest get posted for the selected frequency period. For more information refer: [Savings Interest Calculation and Posting](https://mifosforge.jira.com/wiki/display/MIFOS/Savings+Interest+Calculation+and+Posting)\ Monthly \ Quarterly \ Semi-Annual \ Annually * 12 - Select **Interest calculated using.** For more information refer: [Savings Interest Calculation and Posting](https://mifosforge.jira.com/wiki/display/MIFOS/Savings+Interest+Calculation+and+Posting)\ Daily Balance \ Average daily balance * 13 - Select **Days in year** - depending upon your financial days in a year practice. \ 365 Days\ 360 Days ### Settings For detailed information on Fields refer: [Recurring Deposit Product Fields](https://docs.mifos.org/mifosx/user-manual/for-administrators-mifos-x-platform/administration/products/recurring-deposit/recurring-deposit-product-fields) ![](https://mifosforge.jira.com/wiki/download/thumbnails/102629552/Capture%2048.PNG?version=1\&modificationDate=1484287482575\&cacheVersion=1\&api=v2\&width=1080) 14 - On checking the check box - Marks it as mandatory deposit. Only then would it generate the mandatory deposits in collection sheet. 15 - On checking the check box, enables "Adjust advance payments toward future installments". Suppose there is an advance payment, then future installments gets adjusted automatically if this is enabled. 16 - On checking the check box, enables "Allow withdrawals". Only in enabling this will withdrawals be allowed otherwise it wont. 17 - Provide the **Lock-in period value**. Example: 12 Months (\*18 - freq) so for the 12 months it doesn't allow a withdrawal. 18 - Select frequency Days Weeks Months Years 19 - Provide Minimum Deposit Term value. Example: 12 months (\*20 - Freq), can set minimum deposit term. 20 - Select frequency Days Weeks Months Years 21 - Provide thereafter in multiples of value. Example: Lets say the provided deposit term is 12 months and value provided in **thereafter in multiples of** is 3 months. Then creation of FD account will only be allowed every after 2 months like 14, 16, 18th month.(\*22 - freq) 22 - Select frequency Days Weeks Months Years 23 - Provide Maximum Deposit Term value 24 - Select frequency Days Weeks Months Years 25 - Check the check box for enabling penalty if there is a premature closure. 26 - Provide the percentage - penalty for premature closure. Example: 1(%) will be deduced by the selected deduction type (\*27). 27 - Select type of deduction * Whole term * Till premature withdrawal 28 - **Optional field**; Provide minimum balance for calculating interest. ### Interest Rate chart For info on amount range interest rate chart,please refer - [Interest rate chart with amount range](https://docs.mifos.org/mifosx/user-manual/for-administrators-mifos-x-platform/administration/products/fixed-deposit-products/interest-rate-chart-with-amount-range) ![](https://mifosforge.jira.com/wiki/download/thumbnails/102629552/Capture%2049.PNG?version=1\&modificationDate=1484287712981\&cacheVersion=1\&api=v2\&height=250) For detailed information on Fields refer: [Recurring Deposit Product Fields](https://docs.mifos.org/mifosx/user-manual/for-administrators-mifos-x-platform/administration/products/recurring-deposit/recurring-deposit-product-fields) 29 - Provide start date for the interest rate chart. 30 - Provide end date, in case you want to stop the provided interests rates for the chart. 31 - Select period type Days Weeks Months Years Example: Months 32 - Provide period value - From / To Example: a) 1 - 12 months b) 13 - 18 Months 33 - Provide rate of interest for the period. Example: a) 8(%) b) 8.5(%) 34 - Provide description for the table. Example: a) 1 - 12 months - 8%. b) 13 - 18 months - 8.5%. 35 - To add interest go to the few more interest rate table, and click on **Add** button. To remove, click on **remove** button. **36 - Incentives -** For detailed information on Fields refer: [Fixed Deposit Product Fields](https://docs.mifos.org/mifosx/user-manual/for-administrators-mifos-x-platform/administration/products/fixed-deposit-products/fixed-deposit-product-fields) ![](https://mifosforge.jira.com/wiki/download/attachments/102629552/Capture%2050.PNG?version=1\&modificationDate=1484287827342\&cacheVersion=1\&api=v2) 37 - Select Attribute from the drop down. Example - Gender 38 - Select either one depending upon your needs:- Less than or Equal or Greater than or Not equal. Example - Female 39 - Select Type:Fixed - Provided value will be considered as the rate of interest. Example - 9% (\*40). Incentive - Provided value will be added to the interest rate chart. For example in the chart if it is defined as 8% and incentive is provided as 2% (\*36) then the final interest value will be 10%. 40 - Provide the rate of interest. Example: 9% as shown in (\*39). 41 - Click on **Add**(+) button to define more. \ Example 1) Attribute - Gender, Equal, Value - Female, Type - Fixed, Interest - 9(%) then close the button to save. Example 2) Attribute - Age, Greater then, Value - 60, Type - Incentive, Interest - 2(%) then close the button to save. ### Charges ![](https://mifosforge.jira.com/wiki/download/attachments/102629552/Capture%2051.PNG?version=1\&modificationDate=1484287892653\&cacheVersion=1\&api=v2) In order to use **Add** charge, you should have already defined it in charges. For more information on charges refer here: [Charges ](https://docs.mifos.org/mifosx/user-manual/for-administrators-mifos-x-platform/administration/products/charges) ### Accounting ![](https://mifosforge.jira.com/wiki/download/attachments/102629552/Capture%2052.PNG?version=1\&modificationDate=1484287984714\&cacheVersion=1\&api=v2) **By default Accounting will be disabled - None:-** Meaning If you are using this product for various transactions like deposits, withdrawals, etc, these transactions are not passed in journal entry.
**Enabling accounting for the savings product**:->> You should have created chart of accounts, for more information refer: [https://mifosforge.jira.com/wiki/display/docs/Chart+of+Accounts+and+General+Ledger+Setup](https://docs.mifos.org/mifosx/user-manual/for-administrators-mifos-x-platform/accounting/chart-of-accounts-general-ledger-setup).>> To enable Accounting, you need to select cash accounting. As of now, Mifos X supports only cash accounting for savings product. * Cash \>> Map accounts with respect to the savings product accounts. For information on these accounts refer: [A Possible accounting Spec](https://mifosforge.jira.com/wiki/display/MIFOSX/A+Possible+accounting+Spec) - Accounting rules for savings. ![](https://mifosforge.jira.com/wiki/download/thumbnails/102629552/Capture%2053.PNG?version=1\&modificationDate=1484288030161\&cacheVersion=1\&api=v2\&width=1080) ### **Advanced Accounting Rule** On clicking on the **show** button it enables Advanced accounting rule. ![](https://mifosforge.jira.com/wiki/download/thumbnails/102629552/Capture%2054.PNG?version=1\&modificationDate=1484288085669\&cacheVersion=1\&api=v2\&width=1080) If you click on **Add** button, it will expand and show up selection drop-downs. * Configure Fund sources for Payment Channels. \ Example: In the image shown above, Payment type - Cheque is mapped to Fund source - Bank. So whenever payment type is used for transaction. Journal entry for Account - Bank will be passed. * Map Fees to Income Accounts. * Map Penalties to Specific Income Accounts Click on **Submit** button to Save/Create savings product.
Related articles * Page:[Recurring Deposit](https://docs.mifos.org/mifosx/user-manual/for-administrators-mifos-x-platform/administration/products/recurring-deposit) * Page:[Fixed Deposit Products](https://docs.mifos.org/mifosx/user-manual/for-administrators-mifos-x-platform/administration/products/fixed-deposit-products) * Page:[Mifos X Saving Accounts](https://docs.mifos.org/mifosx/user-manual/for-operational-users-mifos-x-web-app/accounts-and-transactions/deposit-accounts/mifos-x-saving-accounts) * Page:[How to Modify a Saving Account Application](https://docs.mifos.org/mifosx/user-manual/for-operational-users-mifos-x-web-app/accounts-and-transactions/deposit-accounts/mifos-x-saving-accounts/how-to-modify-a-saving-account-application)