# Savings Products

Savings products define the rules, default settings, and constraints for a financial institution's current/checking and passbook savings accounts. A saving product provides a template for multiple accounts that are or will be held by the financial institution's clients, groups and centers.

The categories of information required to set up a saving product includes:

* Identifying or descriptive information&#x20;
* Terms
* Settings
* Charges
* Accounting

Beginning at the main screen, select **Admin**, then select **Products** from the drop-down menu. This will launch the **Products** menu.

Select **Savings Products.** &#x20;

Then click the blue **Create Saving Product** at the top-right of the lis&#x74;**.**

### Create Savings Product&#x20;

### Details

Please referring to the  **Details on the Image**  above, the details 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**. Need to have defined required currency: Currency Configuration
* 5 - Provide **Decimal places**.&#x20;
* 6 - Provide **Currency in multiples of**. This is to provide total amount rounding off. For example: 10, so total amount gets rounded of to 10's. &#x20;

### Terms

* 7 - Provide **Nominal annual interest** (Rate of interest)&#x20;
* 8 - Select **Interest compounding period.** For more info refer: Savings Interest Calculation and Posting\
  &#x20;     Daily \
  &#x20;     Monthly\
  &#x20;     Quarterly \
  &#x20;     Semi-Annual \
  &#x20;     Annually&#x20;
* 9 - Select **Interest posting period** - Interest get posted for the selected frequency period. For more info refer to: Savings Interest Calculation and Posting\
  &#x20;     Monthly \
  &#x20;     Quarterly \
  &#x20;     Semi-Annual \
  &#x20;     Annually&#x20;
* 10 - Select **Interest calculated using.** For more info refer: Savings Interest Calculation and Posting\
  &#x20;       Daily Balance \
  &#x20;       Average daily balance&#x20;
* 11 - Select **Days in year** - depending upon your financial days in a year practice.  \
  &#x20;      365 Days\
  &#x20;      360 Days

### Settings

**Note: All the settings fields are optional.**&#x20;

12 - Provide **Minimum opening balance** - This is to set minimum opening balance. So the provided amount at the time of new savings application submission, gets deposited into savings account once it is activated.  &#x20;

13 - Provide value for **Lock-in period**. This is to set lock-in period hence withdrawal wont be allowed for the selected period.&#x20;

14 - Select **frequency** for Lock-in period.         Days        Weeks        Months        Years

15 - Check the check box to enable **withdrawal fee for transfers**. To define withdrawal fee refer : Charges

16 - Provide **balance amount for calculating interest**. So if the available balance is below the provided minimum balance for calculation, interest wont get generated.&#x20;

17 - On checking the check box it is **enforcing minimum balance.**&#x20;

18 - Set up **minimum balance** to be maintained, by providing amount. Withdrawals wont be possible below the provided amount.&#x20;

19 - Checking the check box enables savings account based on savings product to have over draft. Enabling Savings dormancy:

1 - **Enable dormancy tracking:** Check the check box to enable dormancy tracking for inactive savings account.All the fields 2,3 and 4 below needs a scheduler job to "Update savings dormant account" to be run so as to execute the below status/action.&#x20;

2 - **Number of days to inactive sub-status:** It is the consecutive number of days of inactive period to mark an account as inactive.For example - Assuming that the number of days is 10 days and that an account has become inactive. On running the respective schedule job on the 11th day, the account moves into inactive sub-status but the account doesn't get closed. The account will get reactivated on the transaction deposit or withdrawal. &#x20;

3 - **Number of days to dormant sub-status:** It is the consecutive number of days of inactivity to mark an account as dormant.

For example -Assuming that the number of days is 15 days and that a savings account has become inactive. On running the respective schedule job on the 16th day, the account moves into dormant sub-status but the account doesn't get closed. The account will get reactivated on the transaction deposit or withdrawal.

4 - **Number of days to Escheat:** It is the consecutive number of days of inactiivity to mark an account as Escheat.

For example - Assuming that the  number of days is 20 days and that a savings account has become  inactive. On running the respective schedule job on the 21st day, the account moves into Escheat and the account gets closed..

### 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;

**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 the journal  entry.  \
**Enabling accounting for the savings product**:->> You should have created chart of accounts, for info 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 selection drop-downs.&#x20;

* Configure Fund sources for Payment Channels. \
  For 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/102629497/Capture%2011.PNG?version=1\&modificationDate=1484282452218\&cacheVersion=1\&api=v2)

### View Savings Product&#x20;

&#x20;Go to Admin>>Product>>Savings Product

The image above shows the Savings products list.

### **Edit Savings Product**

Go to Admin>>Product>>savings Products>>Select savings product (Example: Agriculture Saving ) >> then click on Edit button.&#x20;

The image above shows savings products details and you can modify it by clicking on Edit
