Fixed Deposits & Recurring Deposits

Apache Fineract supports three distinct deposit product types. Understanding the differences is essential before configuring products:

Product type	Description
Savings Account	Flexible deposit - clients can deposit and withdraw freely within configured limits
Fixed Deposit (FD)	Lump-sum deposit held for a fixed term at a fixed interest rate; early withdrawal incurs a penalty
Recurring Deposit (RD)	Clients make regular scheduled deposits over a term; interest accrues on the growing balance

This guide covers Fixed Deposits and Recurring Deposits. See the Savings & Deposit Management feature page for savings accounts.

Fixed Deposit Products

Key configuration fields

bash

POST /fineract-provider/api/v1/fixeddepositproducts
Authorization: Basic <base64>
Fineract-Platform-TenantId: default
Content-Type: application/json

json

{
  "name": "6-Month Fixed Deposit",
  "shortName": "FD6M",
  "description": "Term deposit for 6 months at 8% per annum",
  "currencyCode": "USD",
  "digitsAfterDecimal": 2,
  "inMultiplesOf": 0,
  "nominalAnnualInterestRate": 8.0,
  "interestCompoundingPeriodType": 4,
  "interestPostingPeriodType": 4,
  "interestCalculationType": 1,
  "interestCalculationDaysInYearType": 365,
  "lockinPeriodFrequency": 6,
  "lockinPeriodFrequencyType": 2,
  "minDepositTerm": 6,
  "maxDepositTerm": 6,
  "minDepositTermTypeId": 2,
  "maxDepositTermTypeId": 2,
  "depositAmount": 1000,
  "minDepositAmount": 500,
  "maxDepositAmount": 1000000,
  "preClosurePenalApplicable": true,
  "preClosurePenalInterest": 2.0,
  "preClosurePenalInterestOnTypeId": 1,
  "withHoldTax": false,
  "accountingRule": 1,
  "locale": "en"
}

Interest compounding period types

Code	Period
`1`	Daily
`2`	Monthly
`3`	Quarterly
`4`	Semi-annual
`5`	Annual

Interest posting period types

Same codes as compounding period. Posting frequency controls when interest is credited to the account. A common setup is monthly posting with semi-annual compounding.

Lock-in period

lockinPeriodFrequency + lockinPeriodFrequencyType define the minimum holding period before a withdrawal (full or partial) is allowed without penalty. Frequency type codes: 0=days, 1=weeks, 2=months, 3=years.

Pre-closure penalty

When preClosurePenalApplicable: true, withdrawing before the maturity date triggers a penalty. preClosurePenalInterest is the penalty rate. preClosurePenalInterestOnTypeId:

Code	Basis
`1`	Whole term (penalty applies to the total interest earned)
`2`	Post maturity interest (penalty applies only to interest earned after the deposit term)

Fixed Deposit Account Lifecycle

Create account → Approve → Activate (deposit funds) → [Hold until maturity] → Close on maturity
                                                     ↘ Pre-close (with penalty) →

1. Create account

bash

POST /fineract-provider/api/v1/fixeddepositaccounts

json

{
  "clientId": 1,
  "productId": 3,
  "depositAmount": 5000,
  "depositPeriod": 6,
  "depositPeriodFrequencyId": 2,
  "expectedFirstDepositOnDate": "01 March 2025",
  "dateFormat": "dd MMMM yyyy",
  "locale": "en",
  "submittedOnDate": "01 March 2025"
}

2. Approve

bash

POST /fineract-provider/api/v1/fixeddepositaccounts/{accountId}?command=approve

json

{
  "approvedOnDate": "01 March 2025",
  "dateFormat": "dd MMMM yyyy",
  "locale": "en"
}

3. Activate (deposit the funds)

bash

POST /fineract-provider/api/v1/fixeddepositaccounts/{accountId}?command=activate

json

{
  "activatedOnDate": "01 March 2025",
  "dateFormat": "dd MMMM yyyy",
  "locale": "en"
}

4. Close on maturity

bash

POST /fineract-provider/api/v1/fixeddepositaccounts/{accountId}?command=close

json

{
  "closedOnDate": "01 September 2025",
  "onAccountClosure": 100,
  "transferDescription": "FD maturity proceeds",
  "toSavingsAccountId": 12,
  "dateFormat": "dd MMMM yyyy",
  "locale": "en"
}

onAccountClosure determines where the proceeds go: 100 = transfer to a linked savings account, 200 = withdraw as cash.

Pre-mature closure

bash

POST /fineract-provider/api/v1/fixeddepositaccounts/{accountId}?command=prematureClose

Same body as a regular close. Fineract automatically applies the pre-closure penalty if configured.

Recurring Deposit Products

Recurring deposits require clients to make regular contributions (weekly, monthly) over a defined term. Interest accrues on the accumulated balance.

Key configuration differences from Fixed Deposits

json

{
  "name": "Monthly Savings Plan - 12 months",
  "shortName": "RD12M",
  "mandatoryRecommendedDepositAmount": 200,
  "minMandatoryRecommendedDepositAmount": 100,
  "maxMandatoryRecommendedDepositAmount": 10000,
  "isCalendarInherited": false,
  "recurringFrequency": 1,
  "recurringFrequencyType": 2,
  "minDepositTerm": 12,
  "maxDepositTerm": 60,
  "minDepositTermTypeId": 2,
  "maxDepositTermTypeId": 2
}

Field	Meaning
`mandatoryRecommendedDepositAmount`	The standard deposit amount per instalment
`recurringFrequency` + `recurringFrequencyType`	How often deposits are due (e.g., `1` + `2` = every 1 month)
`isCalendarInherited`	If `true`, uses the group meeting schedule as the deposit schedule

Recurring Deposit Account Lifecycle

Create → Approve → Activate → [Regular deposits at each due date] → Close on maturity

Creating and activating a recurring deposit account follows the same pattern as fixed deposits, using the /recurringdepositaccounts endpoints instead.

Recording a recurring deposit

bash

POST /fineract-provider/api/v1/recurringdepositaccounts/{accountId}/transactions?command=deposit

json

{
  "transactionDate": "01 April 2025",
  "transactionAmount": 200,
  "paymentTypeId": 1,
  "dateFormat": "dd MMMM yyyy",
  "locale": "en"
}

Interest Calculation

Both Fixed and Recurring Deposits calculate interest using the daily balance method by default:

Daily interest = Outstanding balance × (Annual rate / Days in year)

Interest is accrued daily and posted to the account at the configured posting frequency (monthly, quarterly, etc.). Posted interest increases the balance on which future interest accrues (compounding effect).

interestCalculationDaysInYearType controls the denominator: 360 (banking convention) or 365 (exact days).

Accounting for Deposits

Fixed and Recurring Deposits require dedicated GL account mappings, separate from savings accounts:

Mapping	GL account type	Description
Savings reference	Liability	The deposit principal held on behalf of the client
Income from interest	Income	Interest expense paid to depositors
Interest payable	Liability	Accrued interest not yet posted to client
Transfers in suspense	Asset	Intermediate account for fund transfers

Retrieving Maturity Details

Check when a fixed deposit matures and how much interest has been accrued:

bash

GET /fineract-provider/api/v1/fixeddepositaccounts/{accountId}?associations=all

The response includes maturityDate, maturityAmount, and interestEarned in the summary section.

Common Mistakes

Mistake	Effect	Fix
Not configuring pre-closure penalty	Clients can withdraw early at full interest	Set `preClosurePenalApplicable: true` and configure the rate
Using the wrong deposit period type code	Term does not match the product	Use `2` for months, `3` for years
Trying to close before maturity without the premature close command	400 error	Use `command=prematureClose` for early withdrawal
Missing interest posting period setup	Interest never posts to client account	Ensure `interestPostingPeriodType` is set on the product

Fixed Deposits & Recurring Deposits ​

Fixed Deposit Products ​

Key configuration fields ​

Interest compounding period types ​

Interest posting period types ​

Lock-in period ​

Pre-closure penalty ​

Fixed Deposit Account Lifecycle ​

1. Create account ​

2. Approve ​

3. Activate (deposit the funds) ​

4. Close on maturity ​

Pre-mature closure ​

Recurring Deposit Products ​

Key configuration differences from Fixed Deposits ​

Recurring Deposit Account Lifecycle ​

Recording a recurring deposit ​

Interest Calculation ​

Accounting for Deposits ​

Retrieving Maturity Details ​

Common Mistakes ​

Fixed Deposits & Recurring Deposits

Fixed Deposit Products

Key configuration fields

Interest compounding period types

Interest posting period types

Lock-in period

Pre-closure penalty

Fixed Deposit Account Lifecycle

1. Create account

2. Approve

3. Activate (deposit the funds)

4. Close on maturity

Pre-mature closure

Recurring Deposit Products

Key configuration differences from Fixed Deposits

Recurring Deposit Account Lifecycle

Recording a recurring deposit

Interest Calculation

Accounting for Deposits

Retrieving Maturity Details

Common Mistakes