Term Deposits

Easy Bank Core Application V2.0

Copyright © 2000-14. Maveric Systems Limited

Introduction: A deposit held at a financial institution that has a fixed term,
Term deposits are an extremely safe investment and are therefore very
appealing to conservative, low-risk investors.

Types of Term Deposit’s in Easy bank core

 Mav Term Deposit.

 Mav RD Saver Deposit.

 Mav Flexi Deposit

 Mav Tax Saver Deposit.

 Mav Senior Citizen Deposit

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Life cycle of Term Deposit

• Eligible criteria
Application • From Existing account -perquisites

• Interest Rate
Term Deposit
it Booked
• Tenure

No closure allowed for FD –overdraft facility .

Term Deposit
Started

• Partial Withdrawal
Deposit in
progress
• Loan Process

• Rollover/Renewal
Maturity
date
• Deposit closed

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Mav Term Deposit
Features
» Individuals, HUF, Trust, Partnership firms, Companies, Associations etc.
» Interest payable at regular intervals (Half/Quarterly/Monthly)
» Nomination facility
» Loan available
» Premature closure

Terms and conditions

» Minimum Rs 100 – no limit
» simple interest
» Period 15 days – 15 years.
» TDS
» No interest claim

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Mav RD Saver Deposit
Features
» Individuals, Minors, HUF, Trust, Partnership firms, Companies, Associations etc.
» No TDS.
» Nomination facility
» Loan facility
» Premature closure
Terms and conditions
» Minimum Amount Rs.100 / -maximum multiples of Rs.25
» Minimum period six months - maximum multiples of Rs 120,
» Amending the deposits details
» Penalty –
Rate month Amount
Rs.1.50 Less than 5 years Rs 100
Rs 2.00 greater than 5 Rs 100
years

» Fraction days

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Mav Tax Saver Deposit
Features
» Individual/s ,also in the name of Kartha of HUF.
» Fixed period of 5 years.
» cumulative and non-cumulative options.
» Nomination facility.

Terms and conditions

» Minimum Amount Rs.100/ and maximum Rs lac.
» simple interest.
» Minimum 15 days -maximum period and 10 years
» No TDS
» Section 80 C for Joint account
» Premature not allowed before five years.

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Mav Flexi Deposit

Features
» individuals singly / jointly / with either or survivor options
» Sweep facility
» In the event of honouring cheques issued in the SB account, sweep in into the SB account will be
in units of Rs.1000/- in LIFO method.
» Free Accident Insurance
» Nomination facility available

Terms and conditions

» Period of deposit will be 91 days only
» Sweep out to FD portion will be only in multiples of Rs. 5000/- accumulated over the balance of
Rs. 10000/- at EOD every Sunday.
» simple interest
» Senior Citizens are not eligible for preferential rate of interest

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Mav Senior Citizen Deposit

▸ Features
» Resident Indians who have completed 60 years of age are eligible to deposit
» cumulative and non-cumulative options are available.
» Loan available.
» Preferential interest rates
» Premature closure
Terms and conditions
» Proof of age has to be produced
» Preferential rate of interest is applicable only for maturity period of one year and above and upto
and inclusive of five years.
» The maximum ceiling limit for extending preferential rate of interest is Rs. 5.00 cr. in aggregate
per depositor.
» TDS.
» Nomination is compulsory

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Interest Basis
The default interest basis for all Term Deposits is 366/365.
Interest Rate Type

Time Bucket Less than Rs.15 Lakhs Rs.15 Lakhs to less than
Rs.100 Lakhs

Rate Rate
(w.e.f. 15.02.2014) (w.e.f. 15.02.2014)
7 Days to 14 days 6.00% 6.00%
15 Days to 30 days 6.00% 8.25%
31 Days to 45 days 7.80% 8.25%
46 Days to 90 days 7.80% 8.25%
91 Days to 180 Days (6 months) 7.80% 8.25%

181 Days to 270 days 7.80% 8.25%

271 Days to less than 1 year 8.00% 8.25%

1 year to 2 years 9.00% 9.00%

Above 2 years to 3 years 9.25% 9.25%

Above 3 years 9.00% 9.00%

Mav- Tax Shield 8.75% -

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 Principal Increase/Decrease
Mature the deposit and open new one

Deposit Amendments
Maturity Day - The maturity date cannot be less or greater that System date.
Rollover Instructions - Rollover instructions can be amended
partial withdrawn - LTD is 20 % of the total
Lien marking

Rollover / Renewal
This is feature in term deposits and account should be in active status

Authorization Levels
one make and one checker

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Registration Requirements
 Existing customer
 Non customer –need to open an account (SAVING ACCOUNT /CURRENT ACCOUNT )

Deposit Amount
Forward and backward value dated booking not allowed.

Products Minimum Amount Maximum Amount

Mav Term Deposit 100 Rs 100 lacs

Mav RD Saver Deposit 100 Rs 100 lacs

Mav Flexi Deposit 100 Rs 100 lacs

Mav Tax Saver Deposit 100 Rs 100lacs

Mav Senior Citizen Deposit 100 Rs 100 lacs

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Fixed Deposit Overdraft facility features

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Requirements

▸ Sanction limit 75% of the deposit value.

▸ No withdrawn from more than sanctioned limit.
▸ No amendment.
▸ Overdraft limit expiry date should be the same as fixed deposit expiry date.
▸ Debit interest
▸ FD rollover (with lien).
▸ No closure allowed for FD –overdraft facility .
▸ No closure allowed for FD –lien marked and debit interest calculated
▸ OD Foreclosure allowed – charging OD interest and principal.

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Customer Alerts
SMS AND email.

Batch processing

Batch Module Process Activities

run
Batch Processing

Online Core Banking Booking Books the TD by using the funds in the account
accounting modules

EOD Core Banking Booking Reconciliation of all bookings and update the
system
EOD Interest system Interest To calculate the interest and updated in the accrual
accrual system on daily

EOD GL accounting Reconciliation Processing required GL entries and update the GL

system system for accounting reconciliation

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Fees and Charges

Transactions Events Basis Reason

The penalty interest is on the rate of interest applicable to the
TD for the period (Note: Charging for preclosure is fixed during
the booking of the TD and can be waived based on customer
type)

1% penal Retail Customers – Compulsory charge

Preclosure Charging
interest
Corporate Customer – Waiver possible

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List of Reports

▸ The following reports are expected to be generated for Customers and CASA
accounts

▸ Summary of all Deposits (Customer and Internal).

▸ Information about all the customer existing in the system.

▸ List of term deposits maturing in

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Exception Management

▸ Below is the list of exceptions identified in the Term Deposits. In a

business scenario, the case may be different from time to time
depending upon the rules and regulations that are exists in the
system.

▸ System should have an option to manually to calculate and credit the

interest to the Customer

▸ There should be an option for reversal entry posting.

▸ Provision should be available to update the Interest run from field as back dated
but not future dated.

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