Recurring Deposit Account Setup
You must use the Mbanq Admin Console to create a Recurring Deposit account product. When you create a new Recurring Deposit account product, you will be required to supply a number of attributes.
Key Features:
Our platform is designed to support NeoBanks and fintech companies in their go-to-market strategies by providing essential functionality and benefits. Recurring Deposit are a special type of deposit account that is designed to receive deposits on a regular basis. These are typically used for Save Now Buy Later (SNBL) use cases, like saving for a wedding or to take a vacation. Recurring Deposit products define the rules, default settings, and constraints for a financial institution savings accounts. A Recurring Deposit product provides a template for multiple accounts that are or will be held by the financial institution's clients.
Setup and Parameters
Note: All red colored asterisk mark are mandatory fields.
Savings Product Details
Below are the main defining elements for the Recurring Deposit product.
| Parameter | Mandatory | Definition |
|---|---|---|
| Recurring Deposit Product Name | x | This is the human-friendly name for the Recurring Deposit product |
| Recurring Deposit Product Short Name | x | This is a short unique Recurring Deposit product name |
| Recurring Deposit Product Description | A short description of the Recurring Deposit product, its purpose, etc. |
Recurring Deposit Currency
All Recurring Deposit accounts have to be originated in a specific currency. This section allows you to specify the Recurring Deposit account'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
Recurring Deposit accounts typically are bound by specific terms and conditions which are specified in this section.
| Parameter | Mandatory | Notes |
|---|---|---|
| Default Deposit Amount | x | |
| Minimum Deposit Amount | ||
| Maximum Deposit Amount | ||
| 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
| Parameter | Mandatory | Notes |
|---|---|---|
| Is Mandatory Deposit | ||
| Allow Withdrawals | ||
| Adjust advance payments toward future installments | ||
| Lock-in period | Withdrawals will not be allowed for the selected period | |
| Lock-in period Range | Days, weeks, months, years | |
| And thereafter, In Multiples of | Days, weeks, months, years | |
| Minimum Deposit Term | Days, weeks, months, years | |
| Maximum Deposit Term | Days, weeks, months, years | |
| For Pre-mature Closure Apply penal interest (less) | ||
| Apply penal interest on | On the whole term, or up until the premature withdrawal | |
| Balance Required For Interest Calculation | Yes or no | |
| Withholding Tax Group | For tax withholding which tax group does this account belong to. |
Charges
You can create and define charges for the Recurring Deposit 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