Maturity Action
Purpose
Allows the processing of a Maturing Deposit based on instructions provided by the investor.
Access
- Deposit | Access Deposit Accounts |
Process
Click
on the Maturity Action drop down list and choose one of the following options:
Direct Credit
Prerequisite
For the Maturity Action to be direct credit the bank account details must have either been set up on the client 
screen or entered in the direct credit account field on the Deposit Details screen.
Process on Maturity
Interest will be credited to the account current ledger. It is usual that both the Interest and Maturity Actions will be Direct Credit.
A separate transaction for the principal repayment will be added to the Direct Credit file created by the system ready for import into your banking software.
Once the Cashbook menu item Post to Other Systems is run the direct credit cash book transactions will post to the deposit account, bringing the balance to zero, and closing the account.
Cheque
Prerequisite
None
Process on Maturity
Interest will be credited to the account current ledger.
A cheque should be manually raised and entered as a withdrawal through the cashbook. The cheque amount will be for the principal plus net interest.
Once the Cashbook menu item Post to Other Systems is run, the cheque transaction will post to the deposit account bringing the balance to zero, and closing the account.
Reinvest
Prerequisite
Reinvestment of full or partial amounts are possible.
Process on Maturity
Interest will be credited to the account current ledger.
A new account will be created, and the balance transferred from the original account to the new account.
The original account will be closed.
Transfer (Trsf) Account
Prerequisite
For the Maturity Action to be Transfer Account the account the balance is to be transferred to must be selected in the Transfer Account field.
Process on Maturity
Interest will be credited to the account balance.
The balance of the original account will be transferred to the specified account.
The original account will be closed.
On Hold
Prerequisite
None
Process on Maturity
The account will not be matured until this action is changed. Interest and RWT will continue to accrue. When the account is taken off Hold, it can still be matured at the original maturity date, and any extra accrual amounts dealt with separately.
Maturity Setup Instructions
Closure of an Account with a full balance to be paid out
Field | Explanation |
Maturity Action | Set to Direct Credit or Cheque |
Reinvest Amount | 0 |
Transfer Amount | Leave Blank |
Direct Credit Account | Leave Blank if Maturity Action if Cheque If the Maturity Action has been set to Direct Credit, enter the bank account number unless already specified on the client |
Check that the interest action is set to Direct Credit or Cheque The date, frequency and day do not need to be changed as the interest will post to the account on maturity |
Closure of an Account with full reinvestment
| Field | Explanation |
| Maturity Action | Set to Reinvest |
| Reinvest Amount | 0 |
| Transfer Amount | Leave Blank |
| Direct Credit Account | Leave Blank |
| Check that the interest action is set to Reinvest The date, frequency and day do not need to be changed as the interest will post to the account on maturity |
Closure of an Account with principle reinvesting and interest paid out
| Field | Explanation |
| Maturity Action | Set to Reinvest |
| Reinvest Amount | 0 |
| Transfer Amount | Leave Blank |
| Direct Credit Account | Leave Blank |
Check that the interest action is set to Direct Credit or Cheque The date, frequency and day do not need to be changed as the interest will post to the account on maturity |
Closure of an Account with a partial reinvestment
| Field | Explanation |
| Maturity Action | Change the Maturity Action to reflect what will happen to
the balance that will not be reinvested This will open up the Reinvest Amount field The balance of the account, after the reinvested
amount has be reinvested, will be treated in accordance with the Maturity
Action above |
| Reinvest Amount | Enter here the amount of money that is to be reinvested The amount entered will be a positive amount During the maturity posting, it will be posted with the correct sign |
| Transfer Amount | Leave Blank |
| Direct Credit Account | If the Maturity Action has been set to Direct Credit, enter the bank account number unless already specified on the client |
Check that the interest action detail is correct The date, frequency and day do not need to be changed as the interest will post to the account on maturity |
Closure of an Account - Transfer to another system
This is normally used to transfer a deposit account balance to a call account when maturity instructions have not been received. The account balance could be transferred to a loan account if required.
This process should not be used to transfer to a new deposit account. The Reinvest Maturity Action should be used instead.
| Field | Explanation |
| Maturity Action | Change the Maturity Action to Trsf Account This will open up the Reinvest Amount and Transfer Account fields The balance of the account, after the reinvest amount had been reinvested, will be transferred to the account specified in the Transfer Account field |
| Reinvest Amount | Enter here the amount of money that is to be reinvested The amount entered will be a positive amount During the maturity posting, it will be posted with the correct sign |
| Direct Credit Account | Leave Blank |
Check that the interest action detail is correct The date, frequency and day do not need to be changed as the interest will post to the account on maturity |
Closure of an Account with a partial reinvest and transfer to a call account
Cannot be completed fully within the Maturity process. In the maturity process the full balance of the account must be re-invested. Transfer Non Cash can then be used to transfer the required amount from the new deposit account to the call account.
Related Articles
Post Deposit Maturity Instructions
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