Introduction to Term Deposits Features in the TBC 

The features that Deposits Temenos Banking Capability (TBC) provides for term deposits, are summarised below:

• Deposit Creation - TBC supports creation of term deposits for single or multiple owners based on the information from external systems like Party TBC, Reference data TBC, and so on.
• Funding of a deposit – The customer can fund a term deposit in the TBC, either partially or fully. When the deposit is funded, the TBC emits an event, which can be captured by an external accounting (GL) system for book-keeping purposes. The funds are settled as per the order mentioned in the payment rule condition. The bank can close the deposit when it is not funded fully within a stipulated time period. In such cases, if the term deposit is partially funded, the proceeds are returned to the customer before closing the term deposit.
• Cooling Period – TBC supports the redemption of a term deposit by the customer, within a certain (cooling) period from the deposit opening date. The bank may not charge any penalty fee, as they would normally do in a normal pre-closure of the term deposit, and no interest is paid, for the period in which the term deposit was active.
• Interest - TBC supports different types of interest rates in term deposits, such as fixed, floating, and periodic rates of interest, with different interest basis on different balance types.
• Charges - For the term deposits in the TBC, it is possible to levy charges at regular frequencies or on triggering an activity or when a rule is broken.
• Interest Adjustments - It is possible to process back-valued adjustments, through the reverse and replay process, for term deposits, using the TBC.
• Tax - Tax can be collected on interest and/or charges in the TBC based on the customer details, which are maintained in Party TBC.
• Withdrawal from a Term Deposit – The customer can withdraw funds from a term deposit at any point in time, by initiating the transaction from any front-end system, which will be passed to the Deposits TBC through the appropriate API. Furthermore, the TBC emits an event, which can be captured by the external accounting (GL) system for book-keeping purposes. The funds are withdrawn, as per the order configured in the pay-out rule condition.
• Notice for Redemption of Funds – Besides term deposits, the system supports notice deposits as well, where the bank defines the notice period required, before a redemption takes place. In cases, where the customer withdraws funds without notice, the bank can either restrict the withdrawal or levy a penalty fee on the customer.
• Deposit Simulation - TBC supports the simulation of a term deposit, at every stage of its life cycle, such as the creation of a term deposit, change in the deposit’s interest rate, early redemption (full or partial) of term deposit and so on.
• Migration Process – Existing term deposits, in the legacy system, can be migrated to the TBC, when the TBC replaces the legacy system.
• Statements - Statement conditions can be configured for the term deposits and handed off to the delivery system for a print carrier. XML, CAMT, Swift, and other options are not currently provided by the Deposits TBC.
• Rollover of Deposits - TBC supports the manual or automatic rollover of a term deposit when certain conditions are met.
• Restrictions on deposits - The bank can apply restrictions on transactions or activities, such as limiting the number of withdrawals from a single term deposit within a month, using this feature.
• Dormancy - TBC supports the handling of inactivity or dormancy, which refers to the absence of any customer-initiated transaction or activity on a term deposit for a certain period. In this case, the period can vary according to local regulations or a bank’s own internal policy.
• Early Redemption of Deposit - TBC supports the redemption of the term deposit, either partially or fully, before reaching the maturity date. In such cases, the bank can reduce the interest rate paid to the customer for the withdrawn amount and levy this as a break-cost fee.
• Deposit Closure - TBC supports the settlement of the term deposit balances and closure of the term deposit based on the customer’s request or bank’s requirement.

Features such as Eligibility, Delivery, Correspondence, Alerts, and Activity messaging are not supported by the Deposits TBC for the term deposits. These are handled by external systems.

Deposits TBC uses soft accounting to update the balances for the transactions of the term deposit. The entries themselves, are handed off, using the accounting events raised as part of every transaction, which could be consumed by any accounting system that maintains the General Ledger (GL).

• Eligibility - The eligibility criteria for opening a term deposit can be handled in an external component, either Temenos’ solution, such as Temenos Enterprise Pricing, or a third-party solution, such as the bank’s onboarding solution.
• Accounting - The accounting and its related features are handled by an external accounting solution.