Recurring deposit products are a great option for clients who want to save regularly while enjoying a competitive interest rate. In this post, we will guide you through the steps of designing a recurring deposit product on your banking platform.
1. Understanding the Fundamentals
- Product Name: What will the recurring deposit product be called?
- Interest Rate: What interest rate will be offered? Will it be fixed or variable?
- Minimum and Maximum Deposit Amount: What amounts will the client need to deposit regularly?
- Deposit Frequency: How often will clients need to make deposits (monthly, quarterly)?
- Product Duration: What will be the minimum and maximum duration for the recurring deposit?
- Early Withdrawal Penalties: Will there be penalties if the client withdraws funds before the end of the deposit period?
2. Example of a Recurring Deposit Product For example, a client opens a recurring deposit account with a monthly contribution of €100 over a 2-year period at a fixed interest rate of 3%. This allows them to build up capital while earning interest on their regular deposits.
3. Steps to Design a Recurring Deposit Product
In this article, we will guide you through the essential steps to create a recurring deposit product in Phenix Web, providing you with clear instructions and practical tips for each phase of the process.
4. Best Practices for Designing a Recurring Deposit Product
- Offer attractive interest rates to encourage clients to save regularly.
- Provide flexible deposit frequencies (monthly, quarterly) to meet the needs of different clients.
- Ensure the product complies with regulations to guarantee the security of client funds.