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- Deposit amount: The amount deposited might be the originial deposit again or the entire amount received from previous deposit account.
- Term: It will remain same as the original deposit term.
- Record it as a renewal: We should record that this deposit account is a renewal from a pre-existing deposit account (probably best to track the deposit account id it is a renewal of.)
- Interest Rate: MFI / Bank may give different interest rate based on the market offerings during the renew period.
Interest Pay-out (Simple Interest Type):
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Financial institutions also offers to pay the monthly realised interest component to its members as cash / cheque on monthly or quarterly based on the interest payout frequency selected for the FD Product.
Use Case: Interest pay-out frequency
An example for simple interest calculation interest payout, member has opted a FD product with a tenure of 12 months with annual interest rate of 12%, FD amount as 100000/-
Interest Realized per Month: 1000/-. Similarly, if it is a quarterly interest payout the realised interest component for 3 months i.e., 3000/-, is paid as cash / cheque to the FD holder.
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