Deposit Early Maturity

Deposit Early Maturity

Purpose

To allow a Deposit to be matured prior to its natural Maturity Date

A fee or clawback of interest may be charged when this process is run

The only Maturity Action available is payment

Access

  1. Deposit | Access Deposit Accounts |  | 

Process

There is a special button that can be used to easily mature a deposit early - 

This process has a number of effects:
  1. Interest can be calculated up to the maturity date at a lower rate than the original deposit.  When the lower rate is specified, the system will calculate the actual interest that should have been paid on that deposit from the account open date to maturity date.  The Interest and RWT displayed are what are due to the depositor at maturity date clawing back any previous interest payments that will have been over paid using the original rate.
  2. An early maturity fee can be charged as well as, or instead of, the reduced interest rate.  The amount entered will decrease the payout to the client.
  3. Any Brokerage paid but unearned can be clawed back.  This is calculated on a daily basis so the system will claw back all brokerage from the early maturity date to the original maturity date.
  4. A Maturity Communication can be selected and printed.  If left blank, then the same Communication is used as when a deposit is normally matured and paid out.  Alternatively a new Communication can be created.
To process an early maturity  the deposit account
Click on the   button
The following screen will display:


Field
Explanation
Early Maturity Date
Specify the date the deposit is due to mature
Reduced Interest Rate
Enter the Reduced Interest Rate if required 
 
This field defaults to the Override Rate from the Deposit Details screen

Broker Clawback, Interest Due, RWT and Total Due will then all be recalculated if the interest rate is reduced
Use Zero Interest
This flag allows the reduced interest rate to be zero 

When this is checked the reduced rate field is set to zero, the interest due is therefore calculated and set to zero as well
Early Maturity Fee
Enter the Early Maturity Fee if required  

This will be greyed out if no Early Maturity Fee transaction type has been entered on the account type
Broker Clawback
This is dependent on the Early Maturity Date and will be calculated by the system when the cursor leaves the Early Maturity Date field

This will be posted using the Broker Clawback transaction type as entered on the Account Type     button
Maturity Communication 
[F2] to highlight and   the Maturity Communication
Direct Credit Account
[F2] to highlight and   the Bank to which the Direct Credit batch will post

There will be up to two entries only in this batch – one for the interest and on for the maturing principal
Direct Credit Particulars Ref.
Enter the reference that is to appear on the Direct Credit line of the client’s bank statement


  to post the relevant entries and mature the account

The following message will display:

 
 

The Interest and RWT will post to the Deposit Account awaiting the payout transaction.  

IF the Interest is to be clawed back due to the reduced interest rate a debit interest transaction and a credit RWT transaction will be created on the account.

The Broker Clawback, if any, will post to the Dealer Account associated with this deposit.

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