diff --git a/mifosng-provider/src/main/java/org/mifosng/platform/saving/domain/DepositAccount.java b/mifosng-provider/src/main/java/org/mifosng/platform/saving/domain/DepositAccount.java
index d6d1badee..e192e8346 100644
--- a/mifosng-provider/src/main/java/org/mifosng/platform/saving/domain/DepositAccount.java
+++ b/mifosng-provider/src/main/java/org/mifosng/platform/saving/domain/DepositAccount.java
@@ -303,6 +303,10 @@ public class DepositAccount extends AbstractAuditableCustom<AppUser, Long>  {
 		return date;
 	}
 
+	public List<DepositAccountTransaction> getDepositaccountTransactions() {
+		return depositaccountTransactions;
+	}
+
 	public BigDecimal getProjectedTotalOnMaturity() {
 		return projectedTotalOnMaturity;
 	}
@@ -547,4 +551,14 @@ public class DepositAccount extends AbstractAuditableCustom<AppUser, Long>  {
 		this.interestAccrued = accuredtotalAmount.minus(deposit).getAmount();
 		
 	}
+
+	public void withdrawInterest(Money interest) {
+		
+		if(this.depositStatus == 300 ){
+			DepositAccountTransaction depositAccountTransaction = DepositAccountTransaction.withdraw(null, new LocalDate(), interest);
+			depositAccountTransaction.updateAccount(this);
+			this.depositaccountTransactions.add(depositAccountTransaction);
+		}
+		
+	}
 }
\ No newline at end of file
diff --git a/mifosng-provider/src/main/java/org/mifosng/platform/saving/domain/DepositAccountTransaction.java b/mifosng-provider/src/main/java/org/mifosng/platform/saving/domain/DepositAccountTransaction.java
index df67a48dc..698822fdb 100644
--- a/mifosng-provider/src/main/java/org/mifosng/platform/saving/domain/DepositAccountTransaction.java
+++ b/mifosng-provider/src/main/java/org/mifosng/platform/saving/domain/DepositAccountTransaction.java
@@ -65,7 +65,7 @@ public class DepositAccountTransaction extends AbstractPersistable<Long> {
         this.amount = amount;
 		this.dateOf = date.toDateMidnight().toDate();
 		this.interest = interest;
-		this.total = amount.add(interest);
+		this.total = amount.equals(0)?new BigDecimal(0):amount.add(interest);
 	}
 
 	public Date getDateOf() {
@@ -93,11 +93,11 @@ public class DepositAccountTransaction extends AbstractPersistable<Long> {
 	}
 
 	public static DepositAccountTransaction deposit(Money amount, LocalDate paymentDate, Money interest) {
-		return new DepositAccountTransaction(DepositAccountTransactionType.DEPOSIT, amount.getAmount(), paymentDate, interest.getAmount());
+		return new DepositAccountTransaction(DepositAccountTransactionType.DEPOSIT, amount == null ? new BigDecimal(0) : amount.getAmount(), paymentDate, interest==null ? new BigDecimal(0) : interest.getAmount());
 	}
 	 
 	public static DepositAccountTransaction withdraw(Money amount, LocalDate paymentDate, Money interest) {
-		return new DepositAccountTransaction(DepositAccountTransactionType.WITHDRAW, amount.getAmount(), paymentDate, interest.getAmount());
+		return new DepositAccountTransaction(DepositAccountTransactionType.WITHDRAW, amount == null ? new BigDecimal(0) : amount.getAmount(), paymentDate, interest==null ? new BigDecimal(0) : interest.getAmount());
 	}
 	
 	public void updateAccount(DepositAccount depositAccount) {
diff --git a/mifosng-provider/src/main/java/org/mifosng/platform/saving/service/DepositAccountWritePlatformServiceJpaRepositoryImpl.java b/mifosng-provider/src/main/java/org/mifosng/platform/saving/service/DepositAccountWritePlatformServiceJpaRepositoryImpl.java
index 3f61fd04d..2c03bc908 100644
--- a/mifosng-provider/src/main/java/org/mifosng/platform/saving/service/DepositAccountWritePlatformServiceJpaRepositoryImpl.java
+++ b/mifosng-provider/src/main/java/org/mifosng/platform/saving/service/DepositAccountWritePlatformServiceJpaRepositoryImpl.java
@@ -1,7 +1,9 @@
 package org.mifosng.platform.saving.service;
 
 import java.math.BigDecimal;
+import java.util.ArrayList;
 import java.util.Arrays;
+import java.util.Collections;
 import java.util.List;
 
 import org.apache.commons.lang.StringUtils;
@@ -16,6 +18,7 @@ import org.mifosng.platform.api.commands.UndoStateTransitionCommand;
 import org.mifosng.platform.api.data.EntityIdentifier;
 import org.mifosng.platform.client.domain.Note;
 import org.mifosng.platform.client.domain.NoteRepository;
+import org.mifosng.platform.currency.domain.Money;
 import org.mifosng.platform.exceptions.DepositAccountNotFoundException;
 import org.mifosng.platform.exceptions.DepositAccountReopenException;
 import org.mifosng.platform.exceptions.NoAuthorizationException;
@@ -24,6 +27,8 @@ import org.mifosng.platform.exceptions.ProductNotFoundException;
 import org.mifosng.platform.saving.domain.DepositAccount;
 import org.mifosng.platform.saving.domain.DepositAccountRepository;
 import org.mifosng.platform.saving.domain.DepositAccountStatus;
+import org.mifosng.platform.saving.domain.DepositAccountTransaction;
+import org.mifosng.platform.saving.domain.DepositAccountTransactionType;
 import org.mifosng.platform.saving.domain.DepositLifecycleStateMachine;
 import org.mifosng.platform.saving.domain.DepositLifecycleStateMachineImpl;
 import org.mifosng.platform.saving.domain.FixedTermDepositInterestCalculator;
@@ -332,21 +337,20 @@ public class DepositAccountWritePlatformServiceJpaRepositoryImpl implements Depo
 			throw new DepositAccountNotFoundException(command.getAccountId());
 		}
 		
-		BigDecimal actualInterestAccured = account.getAccuredInterest().getAmount();
-		Integer tenure = account.getTenureInMonths();
-		BigDecimal interstGettingForPeriod = actualInterestAccured.divide(new BigDecimal(tenure));
-		
-		
-		Integer interestCompoundEvery = account.getInterestCompoundedEvery();
-		LocalDate lastInterestTakenDate = account.getActualCommencementDate();
-		LocalDate todaysDate = new LocalDate();
-		Integer noOfMonthsforInterestCal = Months.monthsBetween(lastInterestTakenDate, todaysDate).getMonths();
-		Integer noOfPeriods = noOfMonthsforInterestCal / interestCompoundEvery;
+		BigDecimal interstGettingForPeriod = BigDecimal.valueOf(account.getAccuredInterest().getAmount().doubleValue()/new Double(account.getTenureInMonths()));
+		LocalDate lastInterestTakenDate = getLastTxnDate(account);
+		Integer noOfMonthsforInterestCal = Months.monthsBetween(lastInterestTakenDate, new LocalDate()).getMonths();
+		Integer noOfPeriods = noOfMonthsforInterestCal / account.getInterestCompoundedEvery();
 		BigDecimal availableInterestAmountForWithDrawal = interstGettingForPeriod.multiply(new BigDecimal(noOfPeriods));
+		BigDecimal cmdInterest = command.getWithdrawInterest();
 		Integer iswithdrawable = availableInterestAmountForWithDrawal.compareTo(command.getWithdrawInterest());
 		
+		
 		if(noOfPeriods > 0 ){
-			
+			if(iswithdrawable >= 0){
+				account.withdrawInterest(Money.of(account.getDeposit().getCurrency(), cmdInterest));
+				this.depositAccountRepository.save(account);
+			}
 		}else if(noOfPeriods <= 0){
 			if(iswithdrawable==-1){
 				throw new RuntimeException();
@@ -354,4 +358,21 @@ public class DepositAccountWritePlatformServiceJpaRepositoryImpl implements Depo
 		}
 		return new EntityIdentifier(account.getId());
 	}
+
+	private LocalDate getLastTxnDate(DepositAccount account) {
+		List<LocalDate> lastTransactionDates = new ArrayList<LocalDate>();
+		LocalDate lastTransactionDate=null;
+		List<DepositAccountTransaction> depositAccountTransactions=account.getDepositaccountTransactions();
+		for(DepositAccountTransaction depositAccountTransaction : depositAccountTransactions){
+			if(depositAccountTransaction.getTypeOf().equals(DepositAccountTransactionType.WITHDRAW)){
+				lastTransactionDate = depositAccountTransaction.getTransactionDate();
+				lastTransactionDates.add(lastTransactionDate);
+			}
+		}
+		if(lastTransactionDates.size()>0)
+			lastTransactionDate = Collections.max(lastTransactionDates);
+		else
+			lastTransactionDate = account.getActualCommencementDate();
+		return lastTransactionDate;
+	}
 }
\ No newline at end of file