Locking and Unlocking Deposit Accounts

Mambu allows you to lock and unlock deposit accounts to better manage situations where you need to stop applying interest or fees to them. Locked accounts do not accept transactions posted to them unless you have the permission to Post Transactions on Locked Accounts (POST_TRANSACTIONS_ON_LOCKED_DEPOSIT_ACCOUNTS).

Lock Accounts

Any deposit account in the Active or Active in Arrears state can be locked. Locked accounts will not allow any transactions and won't charge or collect interest for the time they remain locked.

To lock an account:

1. Open the deposit account.
2. On the right-hand side of the screen, select More > Lock Deposit Account.
3. Select Change State. The deposit account state is then set to Locked and Mambu saves the date when the account was locked.

For more information, see Deposit Account Life Cycle and States.

Unlock Accounts

When you unlock a deposit account, all the suspended activities will be unlocked and automated transactions will resume.

To unlock an account:

1. Open the deposit account.
2. On the right-hand side of the screen, select Unlock Deposit Account.
3. Select Change State.

Once an account is unlocked, all the locked activities are unlocked and as a result:

• The account goes back to the state it was before being locked, either Active or Active in Arrears.
• If the insterest type of the account is Tiered per period, Mambu checks if the interest needs to change and, if so, logs a Change Interest transaction.
• All the interest and withholding taxes will start being accrued again and applied according to the product configuration after you unlock the account.
• From the accounting point of view, if while the deposit account was locked, there was an accounting closure on the account's branch, then when you reopen the deposit account:
  • if, for the period between the last account appraisal and the closure date, you need to enter a transaction, then you'll apply it with the current date as its entry date, because you can't have a transaction on accounting closure.
  • for the period after the accounting closure until you unlock the account, the transaction entry date will be the same as the entry date as the date when the transaction should have been applied had the deposit account not been locked at all.

Example

The following is an example of applying interest after unlocking a deposit account:

• You open a deposit account on January 1st.
• You enter a deposit on January 5th, then lock the account on January 20th and unlock it on April 10th.
• You set the interest to apply on the 1st of each month.
• Accounting closure on account's branch happens on February 15th. As less than one month has passed by the time the deposit account was locked, no interest transaction was applied.
• When you unlock the account, first you must apply the interest that should have been applied on February 1st. Since accounting is closed, the booking date will be the current day, April 10th.
• Then you apply the interest that should have been applied on March 1st. Since accounting is open, the booking date will be March 1st.
• The same thing will happen when you apply the interest on April 1st.

In the example of applying interest after unlocking a deposit account, you can observe that you have three interest applied transactions, like you would have had if the account hadn't been locked, only that the first transaction has the booking date on April 10th and not on February 1st.