The project was to create a Fixed Deposit Management System.
Before starting to describe how the problem was addressed I will briefly discuss what a Fixed Deposit is.
Fixed Deposit
A Fixed Deposit is an investing mechanism where an individual can invest his or her money in a financial company for a fixed period of time. An interest is given by the company to the investor depending on the amount of money and the period of investment.
There is a formal procedure that is followed during this process. The process involves lot of referencing and cross validating. Hence carrying it out manually can sometimes be a burden on employees. Especially, when there are a large number of customers to be managed.
The fixed deposit management process varies by country. This is due to the fact that laws and regulations for financial transactions differ according to the country. And further more each financial institute has their own variation when doing fixed deposits.
1. An application form is given to an investor to be filled and then handed over to the corresponding officer. This application consists of following details.
- The details of the investor who is known as the “Holder” in Fixed Deposits. There can be up to 3 Holders for a Fixed Deposit.
- The details of the “Nominee”
- Details of “Payee”. There can be up to 3 Payees.
- The deposit amount
- The deposit period
- Deposit type (“Monthly” deposits pay interest by month and “Maturity” deposits pay interest at the end of the period)
3. The agreed amount of money is paid by the customer to the company and the company issues a receipt
4. If the money was paid via a cheque, the cheque is checked for validity and if valid the fixed deposit is “Initiated”. Or if the payment was made by cash then the Fixed Deposit is “Initiated” as for validation is not required.
5. A Fixed Deposit Certificate is printed and handed over to the Holder.
6. All initiated applications are forwarded to a superior officer and is again checked.
7. If conditions are satisfied the Fixed Deposit is “Approved”.
8. Monthly interest is calculated and paid to the investor appropriately.
9. When a Fixed Deposit is “Matured” (time period for the Fixed Deposit completed) the investor is given the opportunity either to “Withdraw” the deposit or to “Renew” it.
10. In some cases the investor might want to withdraw the money before the Fixed
Deposit matures. This is known as a “Pre-Mature” withdrawal and handled according to a different process. Then the interest is recalculated using a different formula that yields interest at a much lower rate to the time the money staid with the company.
- If the FD is of “Maturity” type then the deposit amount plus the newly calculated interest is given to the investor
- If the FD is of “Monthly” type where the investor has claimed the interests of previous months, that amount is deducted from the combination of the deposit amount and the newly calculated interest amount.
For better understanding the whole process can be illustrated as follows
Objectives of the Project
Having explained what a Fixed Deposit is, following were the main objectives of the project.
1. Customer details and details regarding Fixed Deposits needed to be held in digital format for easy access and maintainability
2. Interest that should be given to an investor needed to be calculated along with the interest payment date. These interest calculations needed to be done considering several factors
- The deposit amount
- The period of deposit
3. Fixed Deposit certificates and receipts needed to be printed
4. The entire process of managing fixed deposits must run as a smooth work flow
5. Detailed reports and statistics were needed for the management to take vital management decisions.
6. Management of Fixed Deposits needed to be faster. Hence the company can deal with more customers.
7. The staff needed to be relieved of burdensome operations such as constant cross validating and the need to go through files upon files of records.
No comments:
Post a Comment