diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/calendar/service/CalendarUtils.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/calendar/service/CalendarUtils.java
index 59b156130..c77c273d2 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/calendar/service/CalendarUtils.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/calendar/service/CalendarUtils.java
@@ -462,4 +462,18 @@ public class CalendarUtils {
 
         return getNextRecurringDate(recur, seedDate, currentDate);
     }
+
+    public static LocalDate getNextScheduleDate(final Calendar calendar, final LocalDate startDate) {
+        final Recur recur = CalendarUtils.getICalRecur(calendar.getRecurrence());
+        if (recur == null) { return null; }
+        LocalDate date = startDate;
+        final LocalDate seedDate = calendar.getStartDateLocalDate();
+        if (isValidRedurringDate(calendar.getRecurrence(), seedDate, date)) {
+            date = date.plusDays(1);
+        }
+
+        final LocalDate scheduleDate = getNextRecurringDate(recur, seedDate, date);
+
+        return scheduleDate;
+    }
 }
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/RecurringDepositAccount.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/RecurringDepositAccount.java
index d46e8c007..536aa9f86 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/RecurringDepositAccount.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/RecurringDepositAccount.java
@@ -42,6 +42,8 @@ import org.mifosplatform.infrastructure.core.service.DateUtils;
 import org.mifosplatform.organisation.monetary.domain.Money;
 import org.mifosplatform.organisation.staff.domain.Staff;
 import org.mifosplatform.portfolio.accountdetails.domain.AccountType;
+import org.mifosplatform.portfolio.calendar.domain.Calendar;
+import org.mifosplatform.portfolio.calendar.service.CalendarUtils;
 import org.mifosplatform.portfolio.client.domain.Client;
 import org.mifosplatform.portfolio.common.domain.PeriodFrequencyType;
 import org.mifosplatform.portfolio.group.domain.Group;
@@ -1042,10 +1044,16 @@ public class RecurringDepositAccount extends SavingsAccount {
         return this.accountTermAndPreClosure.isTransferInterestToLinkedAccount();
     }
 
-    public void generateSchedule(final PeriodFrequencyType frequency, final Integer recurringEvery) {
+    public void generateSchedule(final PeriodFrequencyType frequency, final Integer recurringEvery, final Calendar calendar) {
         final List<RecurringDepositScheduleInstallment> depositScheduleInstallments = depositScheduleInstallments();
         depositScheduleInstallments.clear();
-        LocalDate installmentDate = depositStartDate();
+        LocalDate installmentDate = null;
+        if (this.isCalendarInherited()) {
+            installmentDate = CalendarUtils.getNextScheduleDate(calendar, accountSubmittedOrActivationDate());
+        } else {
+            installmentDate = depositStartDate();
+        }
+
         final LocalDate maturityDate = calculateMaturityDate();
         int installmentNumber = 1;
         final BigDecimal depositAmount = this.recurringDetail.mandatoryRecommendedDepositAmount();
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/DepositAccountWritePlatformServiceJpaRepositoryImpl.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/DepositAccountWritePlatformServiceJpaRepositoryImpl.java
index d3d6a60dd..16c2a4404 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/DepositAccountWritePlatformServiceJpaRepositoryImpl.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/DepositAccountWritePlatformServiceJpaRepositoryImpl.java
@@ -289,7 +289,7 @@ public class DepositAccountWritePlatformServiceJpaRepositoryImpl implements Depo
                 final PeriodFrequencyType frequencyType = CalendarFrequencyType.from(CalendarUtils.getFrequency(calendar.getRecurrence()));
                 Integer frequency = CalendarUtils.getInterval(calendar.getRecurrence());
                 frequency = frequency == -1 ? 1 : frequency;
-                account.generateSchedule(frequencyType, frequency);
+                account.generateSchedule(frequencyType, frequency, calendar);
                 account.updateMaturityDateAndAmount(mc, isPreMatureClosure);
             }
 
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/DepositApplicationProcessWritePlatformServiceJpaRepositoryImpl.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/DepositApplicationProcessWritePlatformServiceJpaRepositoryImpl.java
index 8b27097af..92dced3eb 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/DepositApplicationProcessWritePlatformServiceJpaRepositoryImpl.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/DepositApplicationProcessWritePlatformServiceJpaRepositoryImpl.java
@@ -240,7 +240,7 @@ public class DepositApplicationProcessWritePlatformServiceJpaRepositoryImpl impl
             final PeriodFrequencyType frequencyType = CalendarFrequencyType.from(CalendarUtils.getFrequency(calendar.getRecurrence()));
             Integer frequency = CalendarUtils.getInterval(calendar.getRecurrence());
             frequency = frequency == -1 ? 1 : frequency;
-            account.generateSchedule(frequencyType, frequency);
+            account.generateSchedule(frequencyType, frequency, calendar);
             final boolean isPreMatureClosure = false;
             account.updateMaturityDateAndAmount(mc, isPreMatureClosure);
             account.validateApplicableInterestRate();
@@ -373,7 +373,7 @@ public class DepositApplicationProcessWritePlatformServiceJpaRepositoryImpl impl
                 final PeriodFrequencyType frequencyType = CalendarFrequencyType.from(CalendarUtils.getFrequency(calendar.getRecurrence()));
                 Integer frequency = CalendarUtils.getInterval(calendar.getRecurrence());
                 frequency = frequency == -1 ? 1 : frequency;
-                account.generateSchedule(frequencyType, frequency);
+                account.generateSchedule(frequencyType, frequency, calendar);
                 final boolean isPreMatureClosure = false;
                 account.updateMaturityDateAndAmount(mc, isPreMatureClosure);
                 account.validateApplicableInterestRate();