Recurring Deposit
Last updated
Last updated
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, then Products from the drop-down menu. This will launch the Products menu.
Select Recurring Deposit Products.
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.
4 - Select Currency. There is a need for one to have defined required currency: 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.
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 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 Monthly Quarterly Semi-Annual Annually
12 - Select Interest calculated using. For more information refer: 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
For detailed information on Fields refer: Recurring Deposit Product Fields
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.
For info on amount range interest rate chart,please refer - Interest rate chart with amount range
For detailed information on Fields refer: 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
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.
In order to use Add charge, you should have already defined it in charges. For more information on charges refer here: Charges
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.>> 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 - Accounting rules for savings.
On clicking on the show button it enables Advanced accounting rule.
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.
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