# Fixed Deposit Products Fixed Deposit Products defines the rules, default settings, and constraints for a financial institution's fixed deposit offerings (also referred to as term deposits). A fixed deposit product provides a template for multiple fixed deposit accounts for the financial institution's clients. The information required to set up a fixed deposit product includes: * Identifying descriptive information * Terms * Settings * Charges * Accounting Beginning at the main screen, select **Admin**, then **Products** from the drop-down menu. This will launch the **Products** menu. Select **Fixed Deposit Products.** ### Now Select **Create Fixed Deposit Product** ### Details Please refer above **Image for details**, Details mentioned below are updated with respect to the provided fields number's. * 1 - Provide Savings **Product name** . * 2 - Provide **Short name**. * 3 - Provide **Description** of this product. ### Currency * 4 - Select **Currency**. You need to have defined required currency: Currency Configuration * 5 - Provide **Decimal places**. * 6 - Provide **Currency in multiples of**. This is to provide the total rounding off amount. For example: 10, so Total amount gets rounded of to 10's. ### Terms 7 - Provide **Default Deposit Amount** 8 - Provide **Minimum Deposit Amount** 9 - Provide **Maximum Deposit Amount** 10 - Select **Interest compounding period.** For more information refer: Savings Interest Calculation and Posting Daily \ Monthly\ Quarterly \ Semi-Annual \ Annually * 11 - Select **Interest posting period** - Interest get posted for the selected frequency period. For more information refer: Savings Interest Calculation and Posting\ Monthly \ Quarterly \ Semi-Annual \ Annually * 12 - Select **Interest calculated using.** For more information refer: Savings Interest Calculation and Posting\ Daily Balance \ Average daily balance * 13 - Select **Days in year** - depending upon your financial days in a year practice. \ 365 Days\ 360 Days ### Settings For detailed information on Fields refer: Fixed Deposit Product Fields 14 - Provide Lock-in period value Example: 12 Months (\*15 - freq) so for the 12 months it doesn't allow withdrawal. 15 - Select frequency: Days Weeks Months Years 16 - Provide Minimum Deposit Term value Example: 12 months (\*17 - Freq), can set minimum deposit term. 17 - Select frequency\ Days\ Weeks\ Months\ Years 18 - Provide thereafter in multiples of value Example: Lets say the provided deposit term is 12 months and Provide thereafter in multiples of value is 3 months. Then creation of Fixed Deposit account will only be allowed every after 2 months like 14, 16, 18th month.(\*19 - freq) 19 - Select frequency:\ Days Weeks Months Years 20 - Provide Maximum Deposit Term value Example: 36 months (\*21 - Freq), can set maximum deposit term. 21 - Select frequency Days\ Weeks\ Months\ Years 22 - Check the check box to enable penalty, if there is a premature closure. 23 - Provide the percentage - penalty for premature closure. Example: 1(%) will be deduced by the selected deduction type(\*24). 24 - Select type of deduction Whole term - As originally defined term. Till premature withdrawal - Till the date of premature withdrawal. ### Interest Rate chart For info on amount range interest rate chart, please refer - Interest rate chart with amount range For detailed information on Fields refer: Fixed Deposit Product Fields 25 - Provide start date for the interest rate chart. 26 - Provide end date, in case if you want to stop the provided interest rates for the chart. 27 - Select period type\ Days Weeks Months Years Example: Month 28 - Provide **period value - From / To** Example: a) 1 - 12 months b) 13 - 18 Months 29 - Provide rate of **interest** for the period. Example: a) 8(%) b) 8.5(%) 30 - Provide **description** for the table. Example: a) 1 - 12 mnt - 8%. b) 13 - 18 mnt - 8.5%. 31 - To add more interest on the interest rate table, click on **Add** button. To remove, click on **remove** button. **32 - Incentives -** For detailed information on Fields refer: Fixed Deposit Product Fields 33 - Select **Attribute** from the drop down. Example - Gender 34 - Select either one depending upon your needs:- Less then or Equal or Greater then or Not equal. Example - Female 35 - Select Type: Fixed - Provided value will be considered as the rate of interest. Example - 9%(\*36). Incentive - Provided value will be added to the interest rate chart. For example in the chart if it is defined as 8% and incentive is provided as 2%(\*36) then the final interest value will be 10%. 36 - Provide the rate of interest. Example: 9% as shown in (\*35). 37 - Click on Add(+) button to define more. Example 1) Attribute - Gender, Equal, Value - Female, Type - Fixed, Interest - 9(%) then close the button to save. Example 2) Attribute - Age, Greater then, Value - 60, Type - Incentive, Interest - 2(%) then close the button to save. ### Charges In order to use Add charge, you should have already defined it in charges. For more information on charges refer here: Charges ### Accounting ![](https://mifosforge.jira.com/wiki/download/attachments/102629544/Capture%2028.PNG?version=1\&modificationDate=1484284926690\&cacheVersion=1\&api=v2) **By default, Accounting will be disabled - None:-** This means If you are using this product for various transactions like deposits, withdrawals,etc, these transactions are not passed in the journal entry.
**Enabling accounting for the savings product**:->> You should have created chart of accounts, for more information refer: >> To enable Accounting, you need to select cash accounting. As of now, Mifos x supports only cash accounting for savings product. * Cash \>> Map accounts with respect to the savings product accounts. For information on these accounts refer: A Possible accounting Spec - Accounting rules for savings. **Advanced Accounting Rule** On clicking on the show button it enables the Advanced accounting rule. If you click on **Add** button, it will expand and show up selection drop-downs. * Configure Fund sources for Payment Channels. \ Example: In the image shown above, Payment type - Cheque is mapped to Fund source - Bank. So whenever payment type is used for transaction. Journal entry for Account - Bank will be passed. * Map Fees to Income Accounts. * Map Penalties to Specific Income Accounts Click on **Submit** button to Save/Create savings product. ![](https://mifosforge.jira.com/wiki/download/attachments/102629544/Capture%2031.PNG?version=1\&modificationDate=1484285113123\&cacheVersion=1\&api=v2)