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Applications > Deposits on Hand > Modify > Account Type Information > Update





Account Type Information > Update

Account Type Information - Update allows you to add or edit account types. The Group is set according to the filter on the Account Type Information page (More Information). Enter a Description and then there are several sections: Account Duration, Interest Posting Information, General Ledger Information, Early Withdrawals Tab (if the account type has an Account Duration), and the Note Tab.

This Section Includes:

Account Duration 

Interest Posting Information

General Ledger Information

Early Withdrawals Tabls Tab

Note Tab


Account Duration


You only need to fill out the Account Duration section if this account type matures (e.g., CD). If you use the Years and/or Months fields you are able to select the following options:

Renew Account at Maturity: This option allows the account to be automatically renewed when the deposit matures on a specified date. The new maturity date will be based on the Account Duration specified in Account Type Information and the Inception Date specified in Account Information.

Allow Additional Deposits: If this option is not checked, this account type allows only the initial deposit and the payout at end of term.

Leave the Account Duration fields blank if you are setting up an "On-Demand" type account (e.g., Savings Account).

Interest Posting Information


Select if you want to Lock Rate and Frequency on Accounts. This option locks the Interest Rate, Frequency, and Accrue Interest Frequency for all accounts that use this Account Type. This is automatically selected and cannot be deselected when there is an Account Duration.

Type the Interest Rate. You can type zero here, but this field cannot be left blank. Choose whether this account type is either Compound or Pay Out. Compound account types add interest back to the account balance. Pay Out account types generate checks to the account holder for any interest. Choose the Frequency from the drop-down: Daily, Monthly (on 1st of month), Monthly (on 15th of month), Quarterly, Semi-Annually, Annually, and Once at end of term. Set up an account type for each frequency that you are using.


The Frequency establishes the timing of the Compound or Payout. The Once at end of term option is only available if this account type has an Account Duration.


What if you have an account that compounds monthly but pays out quarterly? First, set up an account type that has the description of a quarterly type account (ex: Quarterly Payout). Specify a monthly frequency and monthly accrue, and make sure you mark the account type as Pay Out. When you process interest within the quarter, do not select this account type for processing. Instead, select it when you process interest at the end of the quarter. The program will see the monthly frequency and compound the interest for the dates that payouts would otherwise have occurred.


The Based on Inception Date option makes the program compound or payout interest based on the inception date of the deposit account. You only want to check this option if Accrue Frequency is set to either Daily or Monthly.

The Accrue Interest Frequency option allows you to accrue interest at a different frequency than your Compound/Pay Out Frequency. Choose the Accrue Interest Frequency from the drop-down: Daily, Monthly (on 1st of month), Monthly (on 15th of month), Quarterly, Semi-Annually, Annually, and Once at end of term.


The Once at end of term option is only available if this account type has an Account Duration.


The Accrue Interest Frequency setting allows you to post interest to the General Ledger on a regular basis for account types that Compound or Pay Out on a Quarterly, Semi-Annual, or Annual Frequency. If your organization posts accrued interest, the Accrue Interest Frequency option is typically set to Daily or Monthly (1st) for all account types. Otherwise, the Accrue Frequency option is set to match your Frequency selection.


In the below example, a journal is created in the General ledger for the interest every month. However, the interest is only added to the account quarterly (1/1, 4/1, 7/1, and 10/1).



If the account type set to Pay Out, the posted interest (in this case, quarterly) turns into a withdrawal check.


General Ledger Information


Type or select the General Ledger levels and accounts to use for Liability, Interest, and w/d Penalty. The w/d Penalty account applies to early close or withdrawal on accounts with an Account Duration.

NOTE: Click the icon or press "s" in any field with the Search  icon to display a Search window. Use the filter at the top to narrow down your selection. In the Account Search window you can also specify the Account Type in a drop-down list. You can then double-click the item you want to select or click the item and click the Select button. Click the Close link to return to the Update page without making a selection.

Early Withdrawals Tab (Account Types with Duration Only)


The Allow Processing Early Withdrawals option allows withdrawals to be made any time after the initial deposit. If this option is not selected, withdrawals are only allowed for interest payouts or when closing an account. Select the Apply Withdrawal Penalty option to charge a penalty for early withdrawals.

Type the Penalty Interest Rate if the Apply Withdrawal Penalty option is selected. Type a zero (0) to use the interest rate from the account. Type the penalty to Apply and select the time frame from the drop-down. For example, if you type "1" for Apply and select Month's Interest from the drop-down, that tells the program that when there is an early withdrawal one month's interest should be applied. 


The withdrawal penalty is applied when a withdrawal is posted to an account before the account's maturity date. The penalty does not exceed the total interest paid for the account.


Note Tab


Type a note for the account type if desired.

When finished click the Apply button to save the account type and start entering a new one, the Update button to save your changes and return to the Account Type Information page, the Reset link to undo all changes since the last time the account type was updated, or the Cancel link to discard all changes and return to the Account Type Information page.