# 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&#x20;
* 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.**  &#x20;

### 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.  &#x20;

* 1 - Provide Savings **Product name** .
* 2 - Provide **Short name**.&#x20;
* 3 - Provide **Description** of this product.

### Currency&#x20;

* 4 - Select **Currency**. You need to have defined required currency: Currency Configuration
* 5 - Provide **Decimal places**.&#x20;
* 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. &#x20;

### Terms

7 - Provide **Default Deposit Amount**&#x20;

8 - Provide **Minimum Deposit Amount**         &#x20;

9 - Provide **Maximum Deposit Amount**&#x20;

10 - Select **Interest compounding period.** For more information refer: Savings Interest Calculation and Posting

&#x20;    Daily \
&#x20;     Monthly\
&#x20;     Quarterly \
&#x20;     Semi-Annual \
&#x20;     Annually &#x20;

* 11 - Select **Interest posting period** - Interest get posted for the selected frequency period. For more information refer: Savings Interest Calculation and Posting\
  &#x20;     Monthly \
  &#x20;     Quarterly \
  &#x20;     Semi-Annual \
  &#x20;     Annually&#x20;
* 12 - Select **Interest calculated using.** For more information refer: Savings Interest Calculation and Posting\
  &#x20;       Daily Balance \
  &#x20;       Average daily balance&#x20;
* 13 - Select **Days in year** - depending upon your financial days in a year practice.  \
  &#x20;      365 Days\
  &#x20;      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.&#x20;

15 - Select frequency: Days  Weeks    Months  Years

16 - Provide Minimum Deposit Term value Example: 12 months (\*17 - Freq), can set minimum deposit term.&#x20;

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)&#x20;

19 - Select frequency:\
Days      Weeks         Months       Years

20 - Provide Maximum Deposit Term value Example: 36 months (\*21 - Freq), can set maximum deposit term.&#x20;

21 - Select frequency

&#x20;Days\
Weeks\
Months\
Years

22 - Check the check box to enable penalty, if there is a premature closure.&#x20;

23 - Provide the percentage - penalty for premature closure. Example: 1(%) will be deduced by the selected deduction type(\*24).&#x20;

24 - Select type of deduction Whole term - As originally defined term. Till premature withdrawal - Till the date of premature withdrawal.

### Interest Rate chart&#x20;

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.&#x20;

26 - Provide end date, in case if you want to stop the provided interest rates for the chart.&#x20;

27 - Select period type\
Days    Weeks   Months     Years   &#x20;

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(%)&#x20;

30 - Provide **description** for the table. Example: a) 1 - 12 mnt - 8%.                 b) 13 - 18 mnt - 8.5%.&#x20;

31 - To add more interest on the interest rate table, click on **Add** button. To remove, click on **remove** button.&#x20;

**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%.&#x20;

36 - Provide the rate of interest. Example: 9% as shown in (\*35).&#x20;

37 - Click on Add(+) button to define more.&#x20;

Example 1) Attribute - Gender, Equal, Value - Female, Type - Fixed, Interest - 9(%) then close the button to save.&#x20;

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&#x20;

### Accounting&#x20;

![](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.&#x20;

* &#x20;     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**&#x20;

On clicking on the show button it enables the Advanced accounting rule.&#x20;

If you click on **Add** button, it will expand and show up selection drop-downs.&#x20;

* 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.&#x20;
* Map Fees to Income Accounts.&#x20;
* 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)
