● Create a new deposit product

● Relation between deposit products and deposit accounts

● Types of deposit products

● Overdraft products

● Deposit products for individuals and for groups

● Deposit products ID

● Interest calculation options

● Deposits, withdrawals, opening balance and term length

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Create a new deposit product

To create a new product go to Administration > click on Deposit Products > New Deposit Product > enter all the product's terms and conditions > click Save Product.

If you have Accounting switched on in Mambu, the new deposit products that you create will remain Deactivated until you link them to your General Ledger Accounts as described in Product Rules. Once this is done, you'll be able to activate the product and every transaction associated to it, such as deposits or withdrawals will be automatically logged in Accounting as they occur.

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Relation between deposit products and deposit accounts

Just as it happens for loan products and accounts, deposit accounts are all linked to a deposit product that has been previously created. For that reason, all terms and constraints that you define when creating a deposit product will then determine the deposit accounts created under that same product.

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Types of deposit products

Mambu provides you with four types of deposit products with a set of terms that you can set according to your organization's needs.

A Regular Savings product, will allow you to create accounts where clients can make deposits and withdrawals when they wish. The interest is issued at a certain period and accrued over time. Doesn't allow overdrafts.

A Current Account is like a regular savings product, but also allows for overdrafts. Choosing this option will then let the account balances to go negative up to a certain limit.

For Fixed Deposit products, clients should make a deposit to open the account and can only withdraw the money after an established period of time with a certain interest rate. The account can't be closed or withdrawn before the end of that period.

In Savings Plan the client makes regular deposits into the account but can only withdraw the money after the maturity period is reached.

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Overdraft Product

Overview

When you select the product type Current Account, you'll have the option of allowing overdraft accounts. If you select this option the accounts created under this product will allow for withdrawals beyond 0, i.e. the balance can be negative up to a certain limit.

When the account goes negative, the interest starts being charged on that account instead of added.

Interest calculation

Interest in an overdraft account can be fixed or can change based on the balance and overdraft limits.

It will be calculated based on the terms you define, i.e. either on the average or on the minimum balance during the accrual period.

If you don't want to charge interest on overdraft accounts, you can just enter 0 in the field for interest rate. In this case, the accounts created under this product will be like a savings account with the option of going negative without any consequences to the client.

Setup an overdraft product

To create an overdraft product choose Current Account as type of product > enter all its terms and conditions > check the option Allow Overdrafts > enter the mininmum and maximum rate > enter the overdraft limit > Save Product.

The limit for the overdraft defined here refers only to principal. So this is the limit a client can withdraw, but the accounts balance can go below this limit in case there are any fees or interest posted.

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Deposit products for individuals and for groups

You can check one of these options or both, if you want to make the product available for individuals and groups.

Selecting who will be eligible for the new product will make sure that when you create a new deposit account for a client, Mambu will only show you the products available for that type of client - individual or group - making the whole process more efficient and preventing mistakes.

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Deposit products ID

You can write the Alphanumeric code that corresponds to a Deposit Product, so that it can be identified in your database.

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Interest calculation options

Deposits and withdrawals can naturally make the deposit accounts' balances vary between two postings of interest. As such, you can choose whether the interest will be calculated on the average or on the minimum balance of the account during that time.

You can also determine the period of time between the postings of interest.

To choose the account balance and to determine the period between postings, click on the dropdown menus > choose the options that apply.

Additional Reading: Interest Calculation Methods in Savings

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Deposits, withdrawals, opening balance and term length

Recommended Deposit and Maximum Withdrawal

In a savings account and saving plans you can determine if there should be a recommended deposit. This is a value you can set to serve only as a guideline and not as a constraint. The client will still be able to make deposits that fall under or above that value.

On the other hand, the maximum withdrawal amount determines an exact value beyond which the client won't be able to withdraw money.

Opening Balance

For any deposit product you can determine a minimum amount that clients will have to deposit to activate an account

Note: This is a mandatory field, but you can always enter 0 in which case the clients won't have to make a deposit to open an account.

Term Length

For Fixed Deposits and Savings Plans products, you can define the period of time that goes from the account opening till the maturity date, when the client can withdraw the money.

To define this period's length, enter the default, minimum and maximum values > click on the dropdown menu > choose the time unit: months, weeks or days.

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Related Items

• Creating and Editing a Savings Account
• Creating New Loan Products
• Interest Calculation Methods in Savings
• Mambu Terminology
• Managing Savings Products
• Withdrawals and Deposits in Savings Accounts