Fixed Deposit Rollover at Maturity
A fixed deposit matures and the customer instructs the bank to roll over the principal for a new term.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Customer Fixed Deposits (Matured) | Liability (−) | 50,000.00 | - |
| Customer Fixed Deposits (New Term) | Liability (+) | - | 50,000.00 |
💡 Accountant's Note
A rollover simply moves the principal from the matured deposit product to the new term. The matured interest is either paid out separately or added to the new principal (compound). This entry captures only the principal rollover.
Practitioner & Systems Framework
💻 ERP Architecture
In Oracle FLEXCUBE TD module, auto-rollover is a product feature — the system generates the maturity and new TD entries automatically if the customer's standing instruction is 'rollover'. In SAP FSCM, rollover requires a 'close and reopen' transaction. Rate for the new term must be pulled from the current rate tariff, not the old rate.
⚠️ Audit Flags
Auditors check that new-term rates are current market rates, not the old rate. Auto-rollover at matured (potentially higher) rates is a finding if the bank's current rates are lower. Customer notification of maturity and new rate must have been sent at least 7 days before maturity per CBJ consumer protection rules.
📄 Required Documentation
Customer standing instruction for rollover, maturity and rollover confirmation, new term deposit advice with updated rate and maturity date.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.