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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.
Use Case XII: Interest Pay-out (Simple Interest Type):
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.
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Case: Interest pay-out frequency
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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.
This type of FD's are generally offered as to give some income to the FD holders.
Use Case XIII: Job Process for updating matured FD accounts
FD which passes the maturity date and not renewed or withdrawn should be marked as "Matured" in the status column for the respective FD accounts.
Also change the Fixed deposit account to Regular Fixed deposit account.
Use Case XIV: Post Maturity Interest Rate
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Customer should renew or withdraw upon the maturity of a Fixed Deposit. However, sometimes customers delay in doing so. In such scenario interest associated with the FD account will not be used for further interest calculation. Instead a regular interest rate or No interest is posted for those customer. Hence, to accommodate that there is a separate parameter provided as "Post Maturity Interest Rate"
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Interest will be posted with the Post / Pre-maturity interest rate as defined while creating a FD account for that customer.
Use Case XV: Lock-in Period
Financial Institutions define a lock-in period for a Fixed deposit product. If customer wish to withdraw the Fixed deposit are entitled to honor the Lock-in period function to avail interest for the Date of Deposit account to withdrawal date with the pre-maturity interest rate.
Customer will also be penalized heavily if they do not want to honor the lock-in period.
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Case 1: If "Lock-in Period" selection while adding the Fixed deposit account
If customer comes to withdraw FD before the lock-in period, user should be prompted about the lock-in period.
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- Few MFI configures pre-closure charges only if customer withdraws amount before the lock-in period.
- Other MFI do not define the lock-in period. However, the pre-closure charges are deducted from the FD Interest payable amount.
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Case 1: Flat Amount
If customer withdraws before the lock-in period or the maturity date a nominal pre-closure charges are added to the customer FD account.
Pre-closure charges can be defined as a fixed amount
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Case 2: % of pre-closure Interest payable
If customer withdraws before the maturity date or Lock-in period a nominal charges are added to the customer FD account. Charges will be defined as % of the Interest payable to the customer for the FD Account commencement date to the withdraw date.
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