diff --git a/mifosng-provider/src/integrationTest/java/org/mifosplatform/integrationtests/RecurringDepositTest.java b/mifosng-provider/src/integrationTest/java/org/mifosplatform/integrationtests/RecurringDepositTest.java
index 2fd36553d..c5fde08b5 100644
--- a/mifosng-provider/src/integrationTest/java/org/mifosplatform/integrationtests/RecurringDepositTest.java
+++ b/mifosng-provider/src/integrationTest/java/org/mifosplatform/integrationtests/RecurringDepositTest.java
@@ -975,6 +975,7 @@ public class RecurringDepositTest {
                 DEPOSIT_AMOUNT, EXPECTED_FIRST_DEPOSIT_ON_DATE);
         Assert.assertNotNull(transactionIdForDeposit);
 
+        currentDate = currentDate - 1;
         interestPerMonth = (float) (interestPerDay * principal * currentDate);
         System.out.println("IPM = " + interestPerMonth);
         principal += interestPerMonth;
@@ -1101,6 +1102,7 @@ public class RecurringDepositTest {
                 DEPOSIT_AMOUNT, EXPECTED_FIRST_DEPOSIT_ON_DATE);
         Assert.assertNotNull(transactionIdForDeposit);
 
+        currentDate = currentDate - 1;
         interestPerMonth = (float) (interestPerDay * principal * currentDate);
         System.out.println("IPM = " + interestPerMonth);
         principal += interestPerMonth;
@@ -1230,6 +1232,7 @@ public class RecurringDepositTest {
                 DEPOSIT_AMOUNT, EXPECTED_FIRST_DEPOSIT_ON_DATE);
         Assert.assertNotNull(transactionIdForDeposit);
 
+        currentDate = currentDate - 1;
         interestPerMonth = (float) (interestPerDay * principal * currentDate);
         System.out.println("IPM = " + interestPerMonth);
         principal += interestPerMonth;
@@ -1364,6 +1367,7 @@ public class RecurringDepositTest {
                 DEPOSIT_AMOUNT, EXPECTED_FIRST_DEPOSIT_ON_DATE);
         Assert.assertNotNull(newTransactionIdForDeposit);
 
+        currentDate = currentDate - 1;
         interestPerMonth = (float) (interestPerDay * principal * currentDate);
         System.out.println("IPM = " + interestPerMonth);
         principal += interestPerMonth;
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/interestratechart/data/InterestRateChartSlabDataValidator.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/interestratechart/data/InterestRateChartSlabDataValidator.java
index 9ee79b909..1a39e8bfa 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/interestratechart/data/InterestRateChartSlabDataValidator.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/interestratechart/data/InterestRateChartSlabDataValidator.java
@@ -148,7 +148,7 @@ public class InterestRateChartSlabDataValidator {
 
         if (this.fromApiJsonHelper.parameterExists(descriptionParamName, element)) {
             final String description = this.fromApiJsonHelper.extractStringNamed(descriptionParamName, element);
-            baseDataValidator.reset().parameter(descriptionParamName).value(description).notNull();
+            baseDataValidator.reset().parameter(descriptionParamName).value(description).ignoreIfNull();
         }
 
         if (this.fromApiJsonHelper.parameterExists(periodTypeParamName, element)) {
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/DepositAccountDomainServiceJpa.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/DepositAccountDomainServiceJpa.java
index 320186b4e..aad499950 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/DepositAccountDomainServiceJpa.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/DepositAccountDomainServiceJpa.java
@@ -117,12 +117,13 @@ public class DepositAccountDomainServiceJpa implements DepositAccountDomainServi
     public SavingsAccountTransaction handleRDDeposit(final RecurringDepositAccount account, final DateTimeFormatter fmt,
             final LocalDate transactionDate, final BigDecimal transactionAmount, final PaymentDetail paymentDetail) {
         boolean isAccountTransfer = false;
+        final boolean isPreMatureClosure = false;
         final MathContext mc = MathContext.DECIMAL64;
         final SavingsAccountTransaction deposit = this.savingsAccountDomainService.handleDeposit(account, fmt, transactionDate,
                 transactionAmount, paymentDetail, isAccountTransfer);
 
         account.handleScheduleInstallments(deposit);
-        account.updateMaturityDateAndAmount(mc);
+        account.updateMaturityDateAndAmount(mc, isPreMatureClosure);
         account.updateOverduePayments(DateUtils.getLocalDateOfTenant());
         return deposit;
     }
@@ -132,6 +133,7 @@ public class DepositAccountDomainServiceJpa implements DepositAccountDomainServi
     public Long handleFDAccountClosure(final FixedDepositAccount account, final PaymentDetail paymentDetail, final AppUser user,
             final JsonCommand command, final LocalDate tenantsTodayDate, final Map<String, Object> changes) {
         boolean isAccountTransfer = false;
+        final boolean isPreMatureClosure = false;
         final Set<Long> existingTransactionIds = new HashSet<Long>();
         final Set<Long> existingReversedTransactionIds = new HashSet<Long>();
         updateExistingTransactionsDetails(account, existingTransactionIds, existingReversedTransactionIds);
@@ -157,7 +159,7 @@ public class DepositAccountDomainServiceJpa implements DepositAccountDomainServi
         if (account.isReinvestOnClosure()) {
             FixedDepositAccount reinvestedDeposit = account.reInvest(account.getAccountBalance());
             this.depositAccountAssembler.assignSavingAccountHelpers(reinvestedDeposit);
-            reinvestedDeposit.updateMaturityDateAndAmountBeforeAccountActivation(mc);
+            reinvestedDeposit.updateMaturityDateAndAmountBeforeAccountActivation(mc,isPreMatureClosure);
             this.savingsAccountRepository.save(reinvestedDeposit);
             autoGenerateAccountNumber(reinvestedDeposit);
             final SavingsAccountTransaction withdrawal = this.handleWithdrawal(account, fmt, closedDate, account.getAccountBalance(),
@@ -192,6 +194,7 @@ public class DepositAccountDomainServiceJpa implements DepositAccountDomainServi
     public Long handleRDAccountClosure(final RecurringDepositAccount account, final PaymentDetail paymentDetail, final AppUser user,
             final JsonCommand command, final LocalDate tenantsTodayDate, final Map<String, Object> changes) {
         boolean isAccountTransfer = false;
+        final boolean isPreMatureClosure = false;
         final Set<Long> existingTransactionIds = new HashSet<Long>();
         final Set<Long> existingReversedTransactionIds = new HashSet<Long>();
         updateExistingTransactionsDetails(account, existingTransactionIds, existingReversedTransactionIds);
@@ -206,9 +209,9 @@ public class DepositAccountDomainServiceJpa implements DepositAccountDomainServi
         if (account.isReinvestOnClosure()) {
             RecurringDepositAccount reinvestedDeposit = account.reInvest(transactionAmount);
             depositAccountAssembler.assignSavingAccountHelpers(reinvestedDeposit);
-            reinvestedDeposit.updateMaturityDateAndAmount(mc);
+            reinvestedDeposit.updateMaturityDateAndAmount(mc, isPreMatureClosure);
             reinvestedDeposit.processAccountUponActivation(fmt);
-            reinvestedDeposit.updateMaturityDateAndAmount(mc);
+            reinvestedDeposit.updateMaturityDateAndAmount(mc, isPreMatureClosure);
             this.savingsAccountRepository.save(reinvestedDeposit);
 
             Money amountForDeposit = reinvestedDeposit.activateWithBalance();
@@ -216,7 +219,7 @@ public class DepositAccountDomainServiceJpa implements DepositAccountDomainServi
                 handleRDDeposit(reinvestedDeposit, fmt, reinvestedDeposit.getActivationLocalDate(), amountForDeposit.getAmount(),
                         paymentDetail);
             }
-            reinvestedDeposit.updateMaturityDateAndAmount(mc);
+            reinvestedDeposit.updateMaturityDateAndAmount(mc, isPreMatureClosure);
             this.savingsAccountRepository.save(reinvestedDeposit);
             autoGenerateAccountNumber(reinvestedDeposit);
 
@@ -263,6 +266,7 @@ public class DepositAccountDomainServiceJpa implements DepositAccountDomainServi
     public Long handleFDAccountPreMatureClosure(final FixedDepositAccount account, final PaymentDetail paymentDetail, final AppUser user,
             final JsonCommand command, final LocalDate tenantsTodayDate, final Map<String, Object> changes) {
         boolean isAccountTransfer = false;
+        final boolean isPreMatureClosure = true;
         final Set<Long> existingTransactionIds = new HashSet<Long>();
         final Set<Long> existingReversedTransactionIds = new HashSet<Long>();
         updateExistingTransactionsDetails(account, existingTransactionIds, existingReversedTransactionIds);
@@ -272,7 +276,7 @@ public class DepositAccountDomainServiceJpa implements DepositAccountDomainServi
         final DateTimeFormatter fmt = DateTimeFormat.forPattern(command.dateFormat()).withLocale(locale);
         Long savingsTransactionId = null;
         // post interest
-        account.postPreMaturityInterest(closedDate);
+        account.postPreMaturityInterest(closedDate, isPreMatureClosure);
 
         final Integer closureTypeValue = command.integerValueOfParameterNamed(DepositsApiConstants.onAccountClosureIdParamName);
         DepositAccountOnClosureType closureType = DepositAccountOnClosureType.fromInt(closureTypeValue);
@@ -306,6 +310,7 @@ public class DepositAccountDomainServiceJpa implements DepositAccountDomainServi
     public Long handleRDAccountPreMatureClosure(final RecurringDepositAccount account, final PaymentDetail paymentDetail,
             final AppUser user, final JsonCommand command, final LocalDate tenantsTodayDate, final Map<String, Object> changes) {
         boolean isAccountTransfer = false;
+        final boolean isPreMatureClosure = true;
         final Set<Long> existingTransactionIds = new HashSet<Long>();
         final Set<Long> existingReversedTransactionIds = new HashSet<Long>();
         updateExistingTransactionsDetails(account, existingTransactionIds, existingReversedTransactionIds);
@@ -315,7 +320,7 @@ public class DepositAccountDomainServiceJpa implements DepositAccountDomainServi
         final DateTimeFormatter fmt = DateTimeFormat.forPattern(command.dateFormat()).withLocale(locale);
         Long savingsTransactionId = null;
         // post interest
-        account.postPreMaturityInterest(closedDate);
+        account.postPreMaturityInterest(closedDate, isPreMatureClosure);
 
         final Integer closureTypeValue = command.integerValueOfParameterNamed(DepositsApiConstants.onAccountClosureIdParamName);
         DepositAccountOnClosureType closureType = DepositAccountOnClosureType.fromInt(closureTypeValue);
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/FixedDepositAccount.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/FixedDepositAccount.java
index 3074ec707..e8c1d54d9 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/FixedDepositAccount.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/domain/FixedDepositAccount.java
@@ -131,14 +131,13 @@ public class FixedDepositAccount extends SavingsAccount {
         if (!dataValidationErrors.isEmpty()) { throw new PlatformApiDataValidationException(dataValidationErrors); }
     }
 
-    @Override
-    protected BigDecimal getEffectiveInterestRateAsFraction(final MathContext mc, final LocalDate interestPostingUpToDate) {
+    protected BigDecimal getEffectiveInterestRateAsFraction(final MathContext mc, final LocalDate interestPostingUpToDate,
+            final boolean isPreMatureClosure) {
 
         // default it to nominalAnnualInterst rate. interest chart overrrides
         // this value.
         BigDecimal applicableInterestRate = this.nominalAnnualInterestRate;
         if (this.chart != null) {
-            final boolean isPreMatureClosure = SavingsAccountStatusType.fromInt(this.status).isPreMatureClosure();
             boolean applyPreMaturePenalty = false;
             BigDecimal penalInterest = BigDecimal.ZERO;
             LocalDate depositCloseDate = calculateMaturityDate();
@@ -170,7 +169,7 @@ public class FixedDepositAccount extends SavingsAccount {
         return applicableInterestRate.divide(BigDecimal.valueOf(100l), mc);
     }
 
-    public void updateMaturityDateAndAmountBeforeAccountActivation(final MathContext mc) {
+    public void updateMaturityDateAndAmountBeforeAccountActivation(final MathContext mc, final boolean isPreMatureClosure) {
         List<SavingsAccountTransaction> allTransactions = new ArrayList<SavingsAccountTransaction>();
         final Money transactionAmountMoney = Money.of(getCurrency(), this.accountTermAndPreClosure.depositAmount());
         final SavingsAccountTransaction transaction = SavingsAccountTransaction.deposit(null, office(), null,
@@ -178,14 +177,15 @@ public class FixedDepositAccount extends SavingsAccount {
         transaction.updateRunningBalance(transactionAmountMoney);
         transaction.updateCumulativeBalanceAndDates(this.getCurrency(), interestCalculatedUpto());
         allTransactions.add(transaction);
-        updateMaturityDateAndAmount(mc, allTransactions);
+        updateMaturityDateAndAmount(mc, allTransactions, isPreMatureClosure);
     }
 
-    public void updateMaturityDateAndAmount(final MathContext mc) {
-        updateMaturityDateAndAmount(mc, retreiveOrderedNonInterestPostingTransactions());
+    public void updateMaturityDateAndAmount(final MathContext mc, final boolean isPreMatureClosure) {
+        updateMaturityDateAndAmount(mc, retreiveOrderedNonInterestPostingTransactions(), isPreMatureClosure);
     }
 
-    public void updateMaturityDateAndAmount(final MathContext mc, final List<SavingsAccountTransaction> transactions) {
+    public void updateMaturityDateAndAmount(final MathContext mc, final List<SavingsAccountTransaction> transactions,
+            final boolean isPreMatureClosure) {
         final LocalDate maturityDate = calculateMaturityDate();
         final LocalDate interestCalculationUpto = maturityDate.minusDays(1);
 
@@ -193,7 +193,7 @@ public class FixedDepositAccount extends SavingsAccount {
         // calculation
         this.resetAccountTransactionsEndOfDayBalances(transactions, maturityDate);
 
-        final List<PostingPeriod> postingPeriods = calculateInterestPayable(mc, interestCalculationUpto, transactions);
+        final List<PostingPeriod> postingPeriods = calculateInterestPayable(mc, interestCalculationUpto, transactions, isPreMatureClosure);
 
         // reset end of day balance back to today's date
         this.resetAccountTransactionsEndOfDayBalances(transactions, DateUtils.getLocalDateOfTenant());
@@ -253,7 +253,7 @@ public class FixedDepositAccount extends SavingsAccount {
     }
 
     private List<PostingPeriod> calculateInterestPayable(final MathContext mc, final LocalDate maturityDate,
-            final List<SavingsAccountTransaction> transactions) {
+            final List<SavingsAccountTransaction> transactions, final boolean isPreMatureClosure) {
 
         final SavingsPostingInterestPeriodType postingPeriodType = SavingsPostingInterestPeriodType.fromInt(this.interestPostingPeriodType);
 
@@ -271,7 +271,7 @@ public class FixedDepositAccount extends SavingsAccount {
         Money periodStartingBalance = Money.zero(currency);
 
         final SavingsInterestCalculationType interestCalculationType = SavingsInterestCalculationType.fromInt(this.interestCalculationType);
-        final BigDecimal interestRateAsFraction = getEffectiveInterestRateAsFraction(mc, maturityDate);
+        final BigDecimal interestRateAsFraction = getEffectiveInterestRateAsFraction(mc, maturityDate, isPreMatureClosure);
         final Collection<Long> interestPostTransactions = this.savingsHelper.fetchPostInterestTransactionIds(getId());
         boolean isInterestTransfer = false;
         for (final LocalDateInterval periodInterval : postingPeriodIntervals) {
@@ -496,10 +496,10 @@ public class FixedDepositAccount extends SavingsAccount {
         this.summary.updateSummary(this.currency, this.savingsAccountTransactionSummaryWrapper, this.transactions);
     }
 
-    public void postPreMaturityInterest(final LocalDate accountCloseDate) {
+    public void postPreMaturityInterest(final LocalDate accountCloseDate, final boolean isPreMatureClosure) {
 
         Money interestPostedToDate = totalInterestPosted();
-        final Money interestOnMaturity = calculatePreMatureInterest(accountCloseDate, retreiveOrderedNonInterestPostingTransactions());
+        final Money interestOnMaturity = calculatePreMatureInterest(accountCloseDate, retreiveOrderedNonInterestPostingTransactions(), isPreMatureClosure);
         boolean recalucateDailyBalance = false;
 
         // post remaining interest
@@ -521,11 +521,12 @@ public class FixedDepositAccount extends SavingsAccount {
 
     }
 
-    public BigDecimal calculatePreMatureAmount(final LocalDate preMatureDate) {
+    public BigDecimal calculatePreMatureAmount(final LocalDate preMatureDate, final boolean isPreMatureClosure) {
 
         final Money interestPostedToDate = totalInterestPosted().copy();
 
-        final Money interestEarnedTillDate = calculatePreMatureInterest(preMatureDate, retreiveOrderedNonInterestPostingTransactions());
+        final Money interestEarnedTillDate = calculatePreMatureInterest(preMatureDate, retreiveOrderedNonInterestPostingTransactions(),
+                isPreMatureClosure);
 
         final Money accountBalance = Money.of(getCurrency(), getAccountBalance());
         final Money maturityAmount = accountBalance.minus(interestPostedToDate).plus(interestEarnedTillDate);
@@ -533,9 +534,10 @@ public class FixedDepositAccount extends SavingsAccount {
         return maturityAmount.getAmount();
     }
 
-    private Money calculatePreMatureInterest(final LocalDate preMatureDate, final List<SavingsAccountTransaction> transactions) {
+    private Money calculatePreMatureInterest(final LocalDate preMatureDate, final List<SavingsAccountTransaction> transactions,
+            final boolean isPreMatureClosure) {
         final MathContext mc = MathContext.DECIMAL64;
-        final List<PostingPeriod> postingPeriods = calculateInterestPayable(mc, preMatureDate, transactions);
+        final List<PostingPeriod> postingPeriods = calculateInterestPayable(mc, preMatureDate, transactions, isPreMatureClosure);
 
         Money interestOnMaturity = Money.zero(this.currency);
 
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 a8d43f6ff..df4a80f7a 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
@@ -164,10 +164,9 @@ public class RecurringDepositAccount extends SavingsAccount {
         if (!dataValidationErrors.isEmpty()) { throw new PlatformApiDataValidationException(dataValidationErrors); }
     }
 
-    @Override
-    protected BigDecimal getEffectiveInterestRateAsFraction(final MathContext mc, final LocalDate interestPostingUpToDate) {
+    protected BigDecimal getEffectiveInterestRateAsFraction(final MathContext mc, final LocalDate interestPostingUpToDate,
+            final boolean isPreMatureClosure) {
 
-        final boolean isPreMatureClosure = SavingsAccountStatusType.fromInt(this.status).isPreMatureClosure();
         boolean applyPreMaturePenalty = false;
         BigDecimal penalInterest = BigDecimal.ZERO;
         LocalDate depositCloseDate = calculateMaturityDate();
@@ -199,12 +198,13 @@ public class RecurringDepositAccount extends SavingsAccount {
         return applicableInterestRate.divide(BigDecimal.valueOf(100l), mc);
     }
 
-    public void updateMaturityDateAndAmount(final MathContext mc) {
+    public void updateMaturityDateAndAmount(final MathContext mc, final boolean isPreMatureClosure) {
         final LocalDate maturityDate = calculateMaturityDate();
         final LocalDate interestCalculationUpto = maturityDate.minusDays(1);
         final List<SavingsAccountTransaction> allTransactions = generateIncludingFutureTransactions(interestCalculationUpto);
 
-        final List<PostingPeriod> postingPeriods = calculateInterestPayable(mc, interestCalculationUpto, allTransactions);
+        final List<PostingPeriod> postingPeriods = calculateInterestPayable(mc, interestCalculationUpto, allTransactions,
+                isPreMatureClosure);
         Money totalInterestPayable = Money.zero(getCurrency());
         Money totalDepositAmount = Money.zero(getCurrency());
         for (PostingPeriod postingPeriod : postingPeriods) {
@@ -260,7 +260,7 @@ public class RecurringDepositAccount extends SavingsAccount {
     }
 
     private List<PostingPeriod> calculateInterestPayable(final MathContext mc, final LocalDate maturityDate,
-            final List<SavingsAccountTransaction> transactions) {
+            final List<SavingsAccountTransaction> transactions, final boolean isPreMatureClosure) {
 
         // 1. default to calculate interest based on entire history OR
         // 2. determine latest 'posting period' and find interest credited to
@@ -283,7 +283,7 @@ public class RecurringDepositAccount extends SavingsAccount {
         Money periodStartingBalance = Money.zero(currency);
 
         final SavingsInterestCalculationType interestCalculationType = SavingsInterestCalculationType.fromInt(this.interestCalculationType);
-        final BigDecimal interestRateAsFraction = getEffectiveInterestRateAsFraction(mc, maturityDate);
+        final BigDecimal interestRateAsFraction = getEffectiveInterestRateAsFraction(mc, maturityDate, isPreMatureClosure);
         final Collection<Long> interestPostTransactions = this.savingsHelper.fetchPostInterestTransactionIds(getId());
         boolean isInterestTransfer = false;
         for (final LocalDateInterval periodInterval : postingPeriodIntervals) {
@@ -597,10 +597,10 @@ public class RecurringDepositAccount extends SavingsAccount {
         this.summary.updateSummary(this.currency, this.savingsAccountTransactionSummaryWrapper, this.transactions);
     }
 
-    public void postPreMaturityInterest(final LocalDate accountCloseDate) {
+    public void postPreMaturityInterest(final LocalDate accountCloseDate, final boolean isPreMatureClosure) {
 
         final Money interestPostedToDate = totalInterestPosted();
-        final Money interestOnMaturity = calculatePreMatureInterest(accountCloseDate, retreiveOrderedNonInterestPostingTransactions());
+        final Money interestOnMaturity = calculatePreMatureInterest(accountCloseDate, retreiveOrderedNonInterestPostingTransactions(), isPreMatureClosure);
 
         boolean recalucateDailyBalance = false;
 
@@ -623,11 +623,12 @@ public class RecurringDepositAccount extends SavingsAccount {
         this.accountTermAndPreClosure.updateMaturityDetails(this.getAccountBalance(), accountCloseDate);
     }
 
-    public BigDecimal calculatePreMatureAmount(final LocalDate preMatureDate) {
+    public BigDecimal calculatePreMatureAmount(final LocalDate preMatureDate, final boolean isPreMatureClosure) {
 
         final Money interestPostedToDate = totalInterestPosted().copy();
 
-        final Money interestEarnedTillDate = calculatePreMatureInterest(preMatureDate, retreiveOrderedNonInterestPostingTransactions());
+        final Money interestEarnedTillDate = calculatePreMatureInterest(preMatureDate, retreiveOrderedNonInterestPostingTransactions(),
+                isPreMatureClosure);
 
         final Money accountBalance = Money.of(getCurrency(), getAccountBalance());
         final Money maturityAmount = accountBalance.minus(interestPostedToDate).plus(interestEarnedTillDate);
@@ -635,9 +636,10 @@ public class RecurringDepositAccount extends SavingsAccount {
         return maturityAmount.getAmount();
     }
 
-    private Money calculatePreMatureInterest(final LocalDate preMatureDate, final List<SavingsAccountTransaction> transactions) {
+    private Money calculatePreMatureInterest(final LocalDate preMatureDate, final List<SavingsAccountTransaction> transactions,
+            final boolean isPreMatureClosure) {
         final MathContext mc = MathContext.DECIMAL64;
-        final List<PostingPeriod> postingPeriods = calculateInterestPayable(mc, preMatureDate, transactions);
+        final List<PostingPeriod> postingPeriods = calculateInterestPayable(mc, preMatureDate, transactions, isPreMatureClosure);
 
         Money interestOnMaturity = Money.zero(this.currency);
 
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/DepositAccountPreMatureCalculationPlatformServiceImpl.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/DepositAccountPreMatureCalculationPlatformServiceImpl.java
index 635e35e14..f5b5955b6 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/DepositAccountPreMatureCalculationPlatformServiceImpl.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/DepositAccountPreMatureCalculationPlatformServiceImpl.java
@@ -71,15 +71,18 @@ public class DepositAccountPreMatureCalculationPlatformServiceImpl implements De
                 account.clientId(), DepositAccountType.SAVINGS_DEPOSIT);
         final JsonElement element = this.fromJsonHelper.parse(query.json());
         final LocalDate preMaturityDate = this.fromJsonHelper.extractLocalDateNamed(closedOnDateParamName, element);
+        final boolean isPreMatureClosure = true;
 
         if (depositAccountType.isFixedDeposit()) {
             final FixedDepositAccount fd = (FixedDepositAccount) account;
-            accountData = FixedDepositAccountData.preClosureDetails(account.getId(), fd.calculatePreMatureAmount(preMaturityDate),
-                    onAccountClosureOptions, paymentTypeOptions, savingsAccountDatas);
+            accountData = FixedDepositAccountData.preClosureDetails(account.getId(),
+                    fd.calculatePreMatureAmount(preMaturityDate, isPreMatureClosure), onAccountClosureOptions, paymentTypeOptions,
+                    savingsAccountDatas);
         } else if (depositAccountType.isRecurringDeposit()) {
             final RecurringDepositAccount rd = (RecurringDepositAccount) account;
-            accountData = RecurringDepositAccountData.preClosureDetails(account.getId(), rd.calculatePreMatureAmount(preMaturityDate),
-                    onAccountClosureOptions, paymentTypeOptions, savingsAccountDatas);
+            accountData = RecurringDepositAccountData.preClosureDetails(account.getId(),
+                    rd.calculatePreMatureAmount(preMaturityDate, isPreMatureClosure), onAccountClosureOptions, paymentTypeOptions,
+                    savingsAccountDatas);
         }
 
         return accountData;
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 1181eac67..131516cc3 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
@@ -215,7 +215,8 @@ public class DepositAccountWritePlatformServiceJpaRepositoryImpl implements Depo
                 updateExistingTransactionsDetails(account, existingTransactionIds, existingReversedTransactionIds);
             }
 
-            account.updateMaturityDateAndAmount(mc);
+            final boolean isPreMatureClosure = false;
+            account.updateMaturityDateAndAmount(mc, isPreMatureClosure);
             account.validateAccountBalanceDoesNotBecomeNegative(SavingsAccountTransactionType.PAY_CHARGE.name());
             this.savingAccountRepository.save(account);
         }
@@ -276,6 +277,7 @@ public class DepositAccountWritePlatformServiceJpaRepositoryImpl implements Depo
             // submitted and activation date are different then recalculate
             // maturity date and schedule
             if (!account.accountSubmittedAndActivationOnSameDate()) {
+                final boolean isPreMatureClosure = false;
                 final CalendarInstance calendarInstance = this.calendarInstanceRepository.findByEntityIdAndEntityTypeIdAndCalendarTypeId(
                         savingsId, CalendarEntityType.SAVINGS.getValue(), CalendarType.COLLECTION.getValue());
 
@@ -284,7 +286,7 @@ public class DepositAccountWritePlatformServiceJpaRepositoryImpl implements Depo
                 Integer frequency = CalendarUtils.getInterval(calendar.getRecurrence());
                 frequency = frequency == -1 ? 1 : frequency;
                 account.generateSchedule(frequencyType, frequency);
-                account.updateMaturityDateAndAmount(mc);
+                account.updateMaturityDateAndAmount(mc, isPreMatureClosure);
             }
 
             final LocalDate overdueUptoDate = account.maturityDate().isAfter(DateUtils.getLocalDateOfTenant()) ? DateUtils
@@ -517,7 +519,8 @@ public class DepositAccountWritePlatformServiceJpaRepositoryImpl implements Depo
         }
         account.validateAccountBalanceDoesNotBecomeNegative(SavingsApiConstants.undoTransactionAction);
         // account.activateAccountBasedOnBalance();
-        account.updateMaturityDateAndAmount(mc);
+        final boolean isPreMatureClosure = false;
+        account.updateMaturityDateAndAmount(mc, isPreMatureClosure);
 
         final LocalDate overdueUptoDate = account.maturityDate().isAfter(DateUtils.getLocalDateOfTenant()) ? DateUtils
                 .getLocalDateOfTenant() : account.maturityDate();
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 9040ea04d..8b27097af 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
@@ -172,8 +172,9 @@ public class DepositApplicationProcessWritePlatformServiceJpaRepositoryImpl impl
                     DepositAccountType.FIXED_DEPOSIT);
 
             final MathContext mc = MathContext.DECIMAL64;
+            final boolean isPreMatureClosure = false;
 
-            account.updateMaturityDateAndAmountBeforeAccountActivation(mc);
+            account.updateMaturityDateAndAmountBeforeAccountActivation(mc, isPreMatureClosure);
             this.fixedDepositAccountRepository.save(account);
 
             if (account.isAccountNumberRequiresAutoGeneration()) {
@@ -240,7 +241,8 @@ public class DepositApplicationProcessWritePlatformServiceJpaRepositoryImpl impl
             Integer frequency = CalendarUtils.getInterval(calendar.getRecurrence());
             frequency = frequency == -1 ? 1 : frequency;
             account.generateSchedule(frequencyType, frequency);
-            account.updateMaturityDateAndAmount(mc);
+            final boolean isPreMatureClosure = false;
+            account.updateMaturityDateAndAmount(mc, isPreMatureClosure);
             account.validateApplicableInterestRate();
             this.savingAccountRepository.save(account);
 
@@ -328,7 +330,8 @@ public class DepositApplicationProcessWritePlatformServiceJpaRepositoryImpl impl
             if (!changes.isEmpty()) {
                 updateFDAndRDCommonChanges(changes, command, account);
                 final MathContext mc = MathContext.DECIMAL64;
-                account.updateMaturityDateAndAmountBeforeAccountActivation(mc);
+                final boolean isPreMatureClosure = false;
+                account.updateMaturityDateAndAmountBeforeAccountActivation(mc, isPreMatureClosure);
                 this.savingAccountRepository.save(account);
             }
 
@@ -371,7 +374,8 @@ public class DepositApplicationProcessWritePlatformServiceJpaRepositoryImpl impl
                 Integer frequency = CalendarUtils.getInterval(calendar.getRecurrence());
                 frequency = frequency == -1 ? 1 : frequency;
                 account.generateSchedule(frequencyType, frequency);
-                account.updateMaturityDateAndAmount(mc);
+                final boolean isPreMatureClosure = false;
+                account.updateMaturityDateAndAmount(mc, isPreMatureClosure);
                 account.validateApplicableInterestRate();
                 this.savingAccountRepository.save(account);
 
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/SavingsApplicationProcessWritePlatformServiceJpaRepositoryImpl.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/SavingsApplicationProcessWritePlatformServiceJpaRepositoryImpl.java
index 2eb027959..16ee5d617 100644
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/SavingsApplicationProcessWritePlatformServiceJpaRepositoryImpl.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/savings/service/SavingsApplicationProcessWritePlatformServiceJpaRepositoryImpl.java
@@ -453,6 +453,9 @@ public class SavingsApplicationProcessWritePlatformServiceJpaRepositoryImpl impl
         Money amountForDeposit = account.activateWithBalance();
         boolean isAccountTransfer = false;
         if (amountForDeposit.isGreaterThanZero()) {
+            // save account entity before performing deposit transaction, as
+            // accountId is required for persist transaction entity.
+            this.savingAccountRepository.save(account);
             this.savingsAccountDomainService.handleDeposit(account, savingsAccountDataDTO.getFmt(), account.getActivationLocalDate(),
                     amountForDeposit.getAmount(), null, isAccountTransfer);
         }