Feature catalogue

Maturity instructions

A fixed deposit ends on its maturity date. The maturity instruction is the customer’s standing answer to what happens then, captured when the account is opened and changeable any time before the day arrives.

There are two answers.

Instruction What happens at maturity
Pay Out Interest capitalises, the whole balance pays out, the account closes
Reinvest A new deposit opens for a further term, funded by this one, which closes

Nobody has to remember the date. Maturity runs at end of day, so a deposit maturing on a Saturday is handled that night like any other.

flowchart TD
    A[Deposit reaches its maturity date] --> B{Maturity instruction}
    B -->|Pay Out| C[Interest capitalises]
    C --> D[Whole balance pays out]
    D --> E[Account closes]
    B -->|Reinvest| F{Is there a rate for the<br/>new term and amount?}
    F -->|Yes| G[New deposit opens<br/>funded from this one]
    G --> E
    F -->|No| C

Paying out at maturity

Interest capitalises first, then the full balance leaves for the destination the customer nominated. The account closes behind it.

The value date and the settlement date are two different things. The deposit stops earning on the maturity date; the money arrives when the rail delivers it. See value dating.

Where the maturity date falls on a weekend or a holiday, the business day convention on the account decides which day counts as maturity, and the gate fires on that adjusted date. See business day conventions.

Reinvesting

Reinvesting opens a new deposit for the reinvestment term and closes the old one. The new account carries a link back to the deposit it came from, so the chain is readable years later.

How much rolls over depends on what the account does with its interest:

Interest payment method What rolls into the new deposit What leaves
Capitalise Capital plus the interest Nothing
Pay The capital alone The interest, to the nominated bank account

Worked example

A 30-day deposit of 100,000 reaches maturity with 1,234.56 of interest accrued.

When the new term cannot be priced

A reinvestment needs a rate for its term and its amount. If the rate card holds none — the term was withdrawn, or the amount falls outside every band — the reinvestment does not happen. The deposit pays out instead and closes.

This is checked before anything posts, so you never get a half-opened rollover. The outcome is on the account’s history, and the customer is paid rather than parked.

Changing the instruction

Select Change Maturity Instruction. It needs a countersignature, because it changes where a whole balance is going.

The form asks for what the chosen instruction needs, and nothing else:

Changing only the payout account

Change Maturity Payout Account is the narrow version: it changes the bank account the maturity proceeds go to and touches nothing else. It is offered only while the instruction is Pay Out, and it needs a countersignature.

This change is forward value-dated — you name the date it takes effect, and it waits there until the date arrives. See value dating.

What your organisation configures