# Deposit Account Life Cycle and States Source: https://docs.mambu.com/docs/deposit-accounts-life-cycle-and-states Each new deposit account has a life cycle consisting of the following states: ## Pending Approval This is the initial state when you open a new deposit account. This means that the deposit application is under evaluation and can be “Approved” or “Rejected” as the next step of the process, or it can be “Withdrawn” by the client. :::note In this state it is still possible to edit the deposit account terms, such as the interest rate. ::: ### Withdraw a deposit account application If the client or your organization decides to withdraw the request for a deposit account, you can do it only if the account is in the "Pending Approval" state. To withdraw a deposit account application: 1. Open the deposit account. 2. On the right hand side of the screen, click on **Close** > **Withdraw**. 3. Add any notes about the reason for the withdrawal. 4. Select **Change Status**. ![Close drop-down with Withdraw or Reject options.](@site/static/img/support/deposits--deposit-account-details-with-close-actions.png) *** ### Reject a deposit account application When a deposit account is still "Pending Approval" and the application hasn't fulfilled your organization's requirements, for instance, you can choose to reject it. To reject a deposit account application: 1. Open the deposit account. 2. On the right hand side of the screen, click on **Close** > **Reject**. 3. Add a comment about the reason for rejection. 4. Select **Change Status**. ![Close drop-down with Withdraw or Reject options.](@site/static/img/support/deposits--deposit-account-details-with-close-menu.png) *** ## Rejected If the deposit account application doesn’t pass the initial evaluation, you can [reject](/docs/rejecting-a-deposit-account-application) it. The account will be automatically closed and classified in Mambu as "Closed (Rejected)". The deposit applications will keep all their associated information, such as comments, notes or attachments, and remain associated to the client or group. This will allow organizations to have a record of all applications which were rejected with comments explaining why. :::note The application can be re-opened later, which will put the account directly to an “Active” state. ::: ## Withdrawn If clients change their mind and decide not to move forward with the deposit application, you can [withdraw](/docs/withdrawing-a-deposit-account-application) their application. The deposit account will be automatically closed in Mambu, and classified as "Closed (Withdrawn)". :::note The application can be re-opened later, which will put the account directly to an “Active” state. ::: ## Approved Once the deposit account application passed the evaluation, it can be “Approved”. To approve a deposit account, chick on **Approve**, add any comments you might have and confirm the state. At this stage, the client can still “Withdraw” the application. :::note Once approved, you can still adjust the recommended deposit amount and set a maximum withdrawal amount by using the relevant options under **More**. ::: :::note It’s possible to send back the application to “Pending Approval” state by selecting the **Undo Approve** option under **More**. ::: ## Active Once the client makes any transaction (deposit, withdrawal or transfer) on the account, it will become “Active”. :::note It’s possible to send back the deposit account application to “Approved” by using the **Undo Activate** option under **More**, as long as no transactions have been yet posted on the account. ::: ## Dormant If no deposits, withdrawals, or transfers have been performed for a period of time, the account can be automatically set to “Dormant” state. This allows to identify and report on dormant accounts, as well as implement other specific workflows such as contacting the clients who own the dormant accounts. The dormancy period is optional and can be defined at Product level. Once the account status is changed to “Dormant”, no more interest is accrued on the account and no automated transactions are posted on it (interest, fees, transfers, and so on). :::warning Once a transaction is performed on a dormant account (by an authorised user, the deposit account will automatically change state to “Active” and accrued interest will be recalculated for the dormancy period and applied to the account.) ::: ## Closed When the client wishes to close the deposit account that has zero balance, you can close the account and stored it under the client's profile as "Closed”. :::note The deposit account can be re-opened, and it will be sent directly to the “Active” state. ::: ## Locked In order to prevent any transactions from being performed on the account (deposits, withdrawals, transfers), you can lock it under **More**. The new state will be “Locked”. :::note Only the accounts that are in "Active", "Dormant" and "In Arrears" states can be locked. ::: :::note It’s possible to “Unlock the Account”, which will set the deposit account back to an “Active” state which allows you to perform transactions. ::: If you don't want to lock the entire account, but only to block a certain amount from being withdrawn or transferred, you can do it via API. For more information, see [Blocking Funds in Deposit Accounts](/docs/blocking-funds-in-deposit-accounts#blocking-funds). **Additional states applicable to Fixed Deposit Accounts and Savings Plans** ## Begin Maturity Period Once the opening balance quota is reached (defined under the Deposit Product settings), you can “Begin Maturity Period” for that account. The state of the deposit account will remain “Active”. :::note It’s possible to “Undo Begin Maturity Period” for the deposit account by opening the account and, on the right hand side of the screen, select **More** > **Undo Begin Maturity Period**. ::: ## Matured Once the deposit account reaches maturity, it will be stored in the system as “Matured”. :::note Once the matured account has zero balance, it is possible to close the account and it will be stored under the client's profile as "Closed”. ::: **Additional states and processes applicable to Overdrafts** ## In Arrears When a deposit account with an overdraft has a negative balance after the overdraft expiry date or the overdraft limit is decreased below the current negative balance, Mambu will automatically change its state to "In Arrears" until the deposited amount will cover the overdraft balance. When the overdraft balance is covered, the deposit account will be sent back to the “Active” state. ## Written-Off When repayments are no longer expected on a deposit account with an overdraft that is “In Arrears”, it can be closed and written-off. To write off a deposit account with an overdraft, select **Close** > **Write Off**. You can also add any notes you wish to this transaction that will be stored with the history of transactions for this account. The account will be stored in the client’s profile as “Closed (Written-Off)”. :::warning If you wish to undo writing-off the account, select **More** > **Undo Write Off**. :::