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A typical scenario is that the deposit account reaches the maturity date and the customer withdraws their deposit amount and accrued interest which effectively closes the deposit account.
Case I: Is Compounding Interest if selected
Fixed Deposit Amount + Interest Accrued for the Fixed term period gets computed and the amount is available to withdraw.Case II: Simple Interest without "Is Interest Withdrawal" option
Fixed Deposit Amount + Interest Accrued for the Fixed term period gets computed and the amount is available to withdraw.Case III: Simple Interest with "Is Interest Withdrawal" option
Fixed Deposit Amount + (Interest Accrued - Interest Withdraw) gets computed and the amount is available to withdraw. There wont be any Interest balance during withdraw if customer withdraws interest on regular intervals or withdraws complete interest.
Use-case: Full withdrawal and pre-closure of deposit account
Some deposit accounts allow for the customer to withdraw thier their money in full from the account earlier than the maturity date but the result of this is heavy penalization. This is known as pre-closure. On pre-closure the interest accured accrued to date is calculate from the closure date (length of time money was in deposit account), pre-closure interest rate and the original deposit amount.
Case I: Is Compounding Interest if selected
Fixed Deposit Amount + Interest Accrued for the service availed duration with pre-closure interest rate gets computed and the amount is available to withdraw.
Case II: Simple Interest without "Is Interest Withdrawal" option
Fixed Deposit Amount + Interest Accrued for the service availed duration with pre-closure interst rate gets computed and the amount is available to withdraw.
Case III: Simple Interest with "Is Interest Withdrawal" option
Fixed Deposit Amount + (Interest Accrued - Interest Withdrawn) gets computed with the pre-closure interest rate and the amount is available to withdraw.
Use-case: Renewing or 'Rolling over' a Deposit Account
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