Notice Account¶


Product ID	`PRD-021`
Launch tier	2
Jurisdiction	NZ + AU
Status	Planned
Regulations	CCCFA 2003 · NZ Banking Code · ABA Banking Code · NCC Act 2009 (NCCP)

Overview¶

A deposit account requiring advance notice before funds can be withdrawn, in exchange for a higher interest rate than an at-call account. Notice periods are configurable — 31, 60, or 90 days — set at account opening and configurable per tenant. The bank cannot withdraw the notice requirement without customer consent.

Targeted at customers who want a higher return on savings they do not need immediate access to, but who want more flexibility than a fixed-term deposit. Available to personal and business customers in NZ and AU.

Key terms¶

Term	Detail
Account type	At-notice deposit
Notice period	31, 60, or 90 days — set at account opening, configurable per tenant
Interest rate	Variable; higher than the at-call savings rate for the same term
Interest frequency	Monthly, credited to account
Minimum balance	$1,000 NZD / AUD
Maximum balance	No maximum
Withdrawal	Available after notice period expires
Early withdrawal penalty	Interest reduction equivalent to the notice period — see interest calculation section

System capabilities¶

MOD-130 (notice account management) manages the notice period lifecycle: records when notice is lodged, calculates the withdrawal date, blocks the withdrawal until the date arrives, and calculates the early withdrawal penalty if the customer cancels notice or requests early access.

MOD-007 (account state machine) tracks account state across three states: active (no notice lodged), notice_pending (notice lodged, withdrawal date in the future), and withdrawal_ready (notice period expired, withdrawal can proceed).

MOD-005 accrues interest daily at the contracted rate. MOD-063 dispatches three customer notifications: notice received confirmation, a reminder 7 days before the withdrawal date, and a withdrawal available notification on the day the funds become accessible.

Eligibility¶

Existing customer with completed KYC (MOD-009). No minimum income requirement. No credit check required. Joint accounts are supported when the joint account model is available.

Account opening¶

Opened digitally. The customer selects their preferred notice period at account opening and transfers funds in from a transaction account or external bank. The account opens immediately — no credit assessment is required. MOD-050 delivers product disclosure at account opening, including the early withdrawal penalty terms.

Fee structure¶

No monthly fee. No establishment fee. The early withdrawal penalty is applied as an interest adjustment rather than a fixed fee — see the interest calculation section. All fees are governed by the fee schedule (MOD-110).

Interest calculation¶

Interest accrues daily via MOD-005 at the contracted notice rate and is credited monthly via MOD-001.

Early withdrawal penalty: If the customer requests withdrawal before the notice period would have expired — i.e., cancels their notice within the notice window — the interest for that notice period is forfeited. The penalty formula is:

penalty = notice_period_days × (annual_rate / 365) × withdrawn_amount

The penalty is applied as a debit at withdrawal time. MOD-050 enforces disclosure: the customer is shown the calculated penalty amount before confirming early withdrawal, and confirmation cannot proceed without acknowledgement.

Statements¶

Monthly statements are delivered via MOD-113. Each statement includes interest earned in the period, the current contracted rate, a reminder of the notice period requirement, and any pending withdrawal date where notice has been lodged.

Closing¶

To close the account, the customer lodges a withdrawal notice. MOD-130 records the withdrawal date. On the withdrawal date, the balance plus accrued interest is credited to the customer's nominated account and the account is closed via MOD-007.

Early closure before the notice date: the early withdrawal penalty is calculated and disclosed, and on customer confirmation the penalty is applied, the balance is paid out, and the account is closed.

Regulatory compliance¶

The NZ CCCFA does not apply — this is a deposit product, not a credit facility. The AU NCCP equivalent similarly does not apply to deposit products.

Key regulatory obligations:

CON-005 (fee transparency): The early withdrawal penalty must be disclosed upfront at account opening and again before any early withdrawal is processed. MOD-130 enforces the disclosure gate — no early withdrawal can proceed without customer acknowledgement of the penalty amount.
CLQ-002 (liquidity risk management): Notice deposits contribute to the bank's liquidity buffer because they are not callable on demand. MOD-130 reports notice balances and their withdrawal date buckets to MOD-032 (LCR/NSFR engine) so they are correctly classified as non-callable within the notice window. Misclassifying these balances as at-call would overstate short-term liquidity.
CON-004 (product disclosure): Full product disclosure, including notice period terms, penalty structure, and rate information, is delivered at account opening via MOD-050.
AML-002: Standard customer due diligence applies. The notice account does not create additional AML exposure beyond the standard deposit product baseline.

Governing policies¶

CON-001 — Customer Fairness & Conduct Policy
CON-004 — Product Disclosure & Sales Practice Policy
CON-005 — Fee & Pricing Transparency Policy
CON-008 — Financial Hardship Policy
CLQ-002 — Liquidity Risk Management Policy
AML-002 — Customer Due Diligence (CDD) Policy
PRI-001 — Privacy Policy

Implementation modules¶

Module	Name	Status
MOD-001	Double-entry posting engine	Deployed
MOD-003	Real-time balance engine	Deployed
MOD-005	Daily accrual calculator	Deployed
MOD-007	Account state machine	Deployed
MOD-050	Disclosure enforcement module	Deployed
MOD-063	Notification orchestration	Deployed
MOD-110	Fee engine	Deployed
MOD-113	Statement generation	Not started
MOD-130	Notice account management	Deployed

Compiled 2026-05-22 from source/entities/products/PRD-021.yaml