Savings Products

Owned by Former user (Deleted)
Last updated: Jul 19, 2022 by Abhishek H S (Unlicensed)
5 min read

Saving products define the rules, default settings, and constraints for a financial institution's current/checking and passbook saving 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 
  • Terms
  • Settings
  • Charges
  • Accounting

On this page:

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

Select Savings Products.   

Create Savings Product 

Details


Please refer above Details - Image, Below mentioned Details 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 

  • 5 - Provide Decimal places. 
  • 6 - Provide Currency in multiples of. This is to provide total amount rounding off. For ex: 10, so Total amount gets rounded of to 10's.  

Terms

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

Settings

Note: All the settings fields are optional. 
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.   
13 - Provide value for Lock-in period. This is to set lock-in period hence withdrawal wont be allowed for the selected period. 
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 if below the provided minimum balance for calculation, interest wont get generated. 
17 - On checking the check box it's enforcing minimum balance. 
18 - Set up minimum balance to be maintained, by providing amount. Withdrawals wont be possible below the provided amount. 
19 - On checking the check box enables savings account based on savings product can have over draft. 
Enabling Savings dormancy:
1 - Enable dormancy tracking: Check the check box to enable dormancy tracking inactive savings account.
All the below 2,3 & 4 needs a scheduler job - "Update savings dormant account" to be run to execute the below status/action. 
2 - Number of days to inactive sub-status: Provide consecutive number of days of inactive period to mark an account as inactive.
For example - Provided number of days is 10 and lets say savings account is inactive. On running the respective schedule job on 11th day the account moves into inactive sub-status. But the account doesn't gets closed. The account gets active on the transaction deposit or withdrawal.  
3 - Number of days to dormant sub-status: Provide consecutive number of days of inactive period to mark an account as dormant.

For example - Provided number of days is 15 and lets say savings account is inactive. On running the respective schedule job on 16th day the account moves into dormant sub-status. But the account doesn't gets closed. The account gets active on the transaction deposit or withdrawal.

4 - Number of days to Escheat: Provide consecutive number of days of inactive period to mark an account as escheat.

For example - Provided number of days is 20 and lets say savings account is inactive. On running the respective schedule job on 21st day the account moves into Escheat. And the account gets closed.

.

Charges


In either to use Add charge, you should have already defined it in charges. For more information on charges refer here: Charges 

Accounting 


 
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 info refer: https://conflux.atlassian.net/wiki/display/MANUAL/Chart+of+Accounts+-+General+Ledger+Setup.
>> To enable Accounting, you need to select cash accounting. As of now, Finflux 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 Advanced accounting rule. 


If you click on Add button, it will expand and shows up selection drop-downs. 

  • Configure Fund sources for Payment Channels. 
    Ex: In the above shown image, 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.


View Savings Product 

 Go to Admin>>Product>>Savings Product

In the above image showing Savings products list.

 

Edit savings Product

 

Go to Admin>>Product>>savings Products>>Select savings product (Ex: Regular savings) >> then click on Edit button. 


In the above image showing View - Savings products details aswell as you could Edit savings product.  

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