Fixed Deposit Products Setup
You must use the Mbanq Admin Console to create a card product. When you create a new card product, you will be required to supply a number of attributes.
Key Features:
A Fixed Deposit (FD) account is an investment where money is deposited into a bank for a set period of time and earns interest at a fixed rate. FDs are also known as Certificates of Deposit (CDs), Time Deposits or Term Deposits (TDs). This product setup defines the rules, default settings, and constraints for a financial institution's Fixed Deposit accounts.
Setup and Parameters
Note: All red colored asterisk mark are mandatory fields.
Fixed Deposit Product Details
Below are the main defining elements for the loan product.
| Parameter | Mandatory | Definition |
|---|---|---|
| Fixed Deposit Product Name | x | This is the human-friendly name for the savings product |
| Fixed Deposit Short Name | x | This is a short unique savings product name |
| Fixed DepositDescription | A short description of the savings product, its purpose, etc. |
Loan Currency
All Fixed Deposit accounts have to be originated in a specific currency. This section allows you to specify the Fixed Deposit's currency.
| Parameter | Mandatory | Example |
|---|---|---|
| Currency | x | US Dollar |
| Decimal places | 2 | |
| Currency in multiples of | 1 - This is to provide total amount rounding off. |
Terms
Fixed Deposit accounts typically are bound by specific terms and conditions which are specified in this section.
| Parameter | Mandatory | Notes |
|---|---|---|
| Nominal annual interest | x | 5 |
| Default Deposit Amount | x | |
| Minimum Deposit Amount | x | |
| Maximum Deposit Amount | x | |
| Interest compounding period | x | Daily, monthly, quarterly, semi-annual, annual, none - simple interest |
| Interest posting period | x | Monthly, quarterly, semi-annual, annual |
| Interest calculated using | x | Daily balance or Average daily balance |
| Days in year | x | 365 or 360 |
Settings
| Paramerter | Mandatory | Notes |
|---|---|---|
| Lock-in period | How much money has to be in the account in order to activate it. | |
| And thereafter, In Multiples of | ||
| Minimum Deposit Term | ||
| Maximum Deposit Term | ||
| For Pre-mature Closure: Apply penal interest (less) | ||
| Apply penal interest on: | ||
| Is Withhold tax applicable |
Interest Rate Chart
Interest for the Fixed Deposit Account is defined on the Interest Rate Chart.
| Parameter | Description |
|---|---|
| Valid From Date | Provide start date for the interest rate chart |
| End Date | Provide end date, in case if you want to stop the provided interest rates for the chart |
| Amount Range | The range of the deposit and then the corresponding interest to be applied to amounts in that range. You can have multiple rows for different amount ranges. Ex. 1,000 to 5,000 and 5,000 to 50,000 |
| Period Type | Days Weeks Months Years |
| Period From | Ex. 1 - 12 months |
| Period To | Ex. 13 - 18 months |
| Interest Rate | Ex. 8%. |
| Description | Add notes for this amount range and interest rate. |
| Incentive | A bonus defined for a specific market group. (Must comply with FCRA and UDAAP regulations) |
Charges
You can create and define charges for the savings account. Just click on add to create a new charge.
Accounting
You can specify if there is an accounting treatment, and if so, if it is cash or accrual based.
Updated 10 months ago