Introduction to Term Deposits Value Added Components

Value added term deposits requirement covers the 2 common Canadian deposit products as given below.

1. Escalator rate term deposit.
2. Index linked term deposit.

It also covers the redemption penalty that needs to be applied during pre-closure of deposits.

Product Setups: specific product setups have been made to cater to the following:

• Escalator rate term deposit: A term deposit where essentially the interest rate and the deposit increases over certain pre-defined intervals during the tenure of the deposit.
• Index linked term deposit (ILTD): A term deposit where the interest rate is linked to an index or base rate, and the interest rate increases or decreases with the movements of the base index.
• Regular term deposit: This product is representative of a standard term deposit product.

These products are meant to be a sample for the purpose of the Canadian model bank, and as per standard Temenos Transact functionality, the user may create additional products or make modifications to product conditions etc. where required.

The product setups also include the ability to restrict the availability of term deposit products to different eligible customers only, using the product manager functionality in Temenos Transact.

Other features covered include:

• Control over deposit tenure.
• Redemption conditions including premature term deposit withdrawals and the associated interest rate adjustments or fees as applicable.
• Details of term deposit product setups are covered in this user guide.