# Recurring Deposit

**Recurring Deposit Products**

Recurring Deposit products define the rules, default settings, and constraints for a financial institution's recurring deposit offerings (a type of term deposit with recurring deposits).

A recurring deposit product provides a template for multiple recurring deposit accounts for the financial institution's clients.

The information required to set up a recurring deposit product includes:

* Identifying some 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 **Recurring Deposit Products.**  &#x20;

### Now click on **Create Recurring Deposit Products**

### 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**. There is a need for one to have defined required currency: Currency Configuration
* 5 - Provide **Decimal places**.&#x20;
* 6 - Provide **Currency in multiples of**. This is to provide the total amount for rounding off. For example: 10, so Total amount gets rounded of to 10's. &#x20;

### Terms

* 7 - Provide **Default Deposit Amount**&#x20;
* &#x20;8 - Provide Minimum Deposit Amount
* 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: Recurring Deposit Product Fields

14 - On checking the check box - Marks it as mandatory deposit. Only then would it generate the mandatory deposits in collection sheet. &#x20;

15 - On checking the check box, enables "Adjust advance payments toward future installments". Suppose there is an advance payment, then future installments gets adjusted automatically if this is enabled.&#x20;

16 - On checking the check box, enables "Allow withdrawals". Only in enabling this will withdrawals be allowed otherwise it wont.

17 - Provide the **Lock-in period value**. Example: 12 Months (\*18 - freq) so for the 12 months it doesn't allow a withdrawal.&#x20;

18 - Select frequency          Days         Weeks         Months         Years

19 - Provide Minimum Deposit Term value. Example: 12 months (\*20 - Freq), can set minimum deposit term.

20 -  Select frequency           Days                   Weeks               Months               Years&#x20;

21 - Provide thereafter in multiples of value. Example: Lets say the provided deposit term is 12 months and value provided in **thereafter in multiples of**  is 3 months. Then creation of FD account will only be allowed every after 2 months like 14, 16, 18th month.(\*22 - freq)&#x20;

22 - Select frequency                Days         Weeks         Months          Years  23 - Provide Maximum Deposit Term value

24 - Select frequency          Days              Weeks              Months                 Years&#x20;

25 - Check the check box for enabling penalty if there is a premature closure.&#x20;

26 - Provide the percentage - penalty for premature closure. Example: 1(%) will be deduced by the selected deduction type (\*27).&#x20;

27 - Select type of deduction&#x20;

* &#x20;       Whole term&#x20;
* &#x20;       Till premature withdrawal

28 - **Optional field**; Provide minimum balance for calculating interest. &#x20;

### 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: Recurring Deposit Product Fields

29 - Provide start date for the interest rate chart.&#x20;

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

31 - Select period type           Days          Weeks          Months          Years Example: Months

32 - Provide period value - From / To Example: a) 1 - 12 months                 b) 13 - 18 Months

33 - Provide rate of interest for the period. Example: a) 8(%)                 b) 8.5(%)&#x20;

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

35 - To add interest go to the  few more interest rate table, and click on **Add** button. To remove, click on **remove** button.&#x20;

**36 - Incentives -** For detailed information on Fields refer: Fixed Deposit Product Fields

37 - Select Attribute from the drop down. Example - Gender

38 - Select  either one depending upon your needs:- Less than or Equal or Greater than or Not equal.  Example - Female

39 - Select Type:Fixed - Provided value will be considered as the rate of interest. Example - 9% (\*40).  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;

40 - Provide the rate of interest. Example: 9% as shown in (\*39).&#x20;

41 - 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. &#x20;

### 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/102629552/Capture%2052.PNG?version=1\&modificationDate=1484287984714\&cacheVersion=1\&api=v2)

**By default Accounting will be disabled - None:-** Meaning If you are using this product for various transactions like deposits, withdrawals, etc, these transactions are not passed in  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 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.

<div align="left"><img src="https://mifosforge.jira.com/wiki/download/attachments/102629552/Capture%2055.PNG?version=1&#x26;modificationDate=1484288139384&#x26;cacheVersion=1&#x26;api=v2" alt=""></div>

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