Advantage of using MM module to process deposits

Hi,

We are presently using LD module for loans and contemplating using LD module for processing deposits. Nature of deposits are plain vanilla deposits with no frills to it. Should we go in for MM or LD. what r the advantages of MM over LD. MM has more functionality in terms of roll over facility but other than that if someone can throw some light will be grateful. we r using R6

Hi Solomondavid,

According to my experience. Using LD will allow you to have deposits with monthly interest schedules (the customer wants to place a 1 Year depoisit with monthly interest being credited to his savings ac). In MM we cannot do like that. The interest will be liquidated at end of each cycle, in above case its after one year.

On the other hand MM has rolver feature where you can do renewal to your deposit if the customer wishes to extend the period but LD doesnt have this feature of rolling over.

So according to my view, depending on the Deposit products you have, you can use one or both of them.

Udayangi

MM is designed for very straight forward depo contracts. However it is much easier in MM module to:
- change interest rate applied to the contract. BTW, you can apply periodic interest to the contract as well.
- increase/repay part of the depo
- create rollover or contract extention (BTW, if your bank is using Postion management module for Interest risk monitoring that can be crucial difference between MM and LD modules as they will show IR positions differently, depending how depo is set)
- You can set interest payment schedule by manipulating with the depo rollover
- interest capitalisation available
- simply tax application
- easier to mature depo online (early liquidation)
- simple charge application

Basically, you can do most of the things that LD is catering for but in more simple way. Especially if you don't have schedules.