High-Interest Savings Account¶
| Product ID | PRD-002 |
| Launch tier | 1 |
| Jurisdiction | NZ + AU |
| Status | Planned |
| Regulations | AML/CFT Act 2009 · AML/CTF Act 2006 · Privacy Act 2020 · Privacy Act 1988 |
The high-interest savings account is an at-call deposit account earning a variable interest rate, with a bonus rate available each calendar month when the institution's configured conditions are met. Interest is calculated on the actual daily closing balance and credited monthly.
Key terms¶
| Term | Value |
|---|---|
| Account type | At-call savings deposit |
| Currency | NZD (NZ) / AUD (AU) |
| Base interest rate | Per rate schedule (variable) |
| Bonus interest rate | Per rate schedule — earned when monthly conditions met |
| Bonus conditions | Per rate schedule (typically: minimum monthly deposit AND no withdrawals during the month) |
| Interest calculation | Daily on closing balance; credited last day of each calendar month |
| Minimum balance for interest | None |
| Withdrawals | Unlimited; at-call |
| Monthly fee | Per fee schedule |
| Statement frequency | Monthly |
System capabilities¶
- Interest calculated on the actual daily closing balance — not minimum monthly balance or end-of-month snapshot.
- Bonus rate conditions evaluated automatically at month-end — no customer claim required.
- Rate changes effective within 5 minutes of approval (MOD-006); advance notice of minimum 14 days for rate increases per CON-005.
- Rate change notification delivered to the customer automatically on the day the notice period begins.
- Balance visible in real time; interest accrual accumulator shown in the app daily.
Eligibility¶
Assessed automatically by MOD-105. Standard eligibility requires verified KYC (MOD-009), CDD tier assigned (MOD-010), no active sanctions match (MOD-013), and jurisdiction match (NZ or AU). The account may be opened as a standalone product or alongside an Everyday Transaction Account (PRD-001). Existing customers with a verified KYC record on file do not repeat the identity flow.
Account opening¶
Follows the same automated in-session pipeline as PRD-001. For existing customers, no additional identity verification is required — the account opens immediately against the existing KYC record. For new customers, the full eIDV + CDD + sanctions flow runs in-session. MOD-007 transitions the account to ACTIVE on a VERIFIED result.
Fees¶
| Fee type | Amount |
|---|---|
| Monthly account fee | Per fee schedule |
| Electronic transfer fee | Per fee schedule |
| Paper statement fee | Per fee schedule |
Fee waivers are applied automatically by MOD-110 based on conditions in the institution's fee schedule.
Interest¶
Daily accrual formula: daily_interest = closing_balance × (annual_rate / 365). Interest accumulates each day and is credited in a single posting on the last calendar day of the month.
Bonus rate: if the customer satisfies all bonus conditions for the full calendar month, the bonus rate replaces the base rate for the entire month's credit. Conditions are evaluated automatically by the fee and accrual engine at month-end using transaction data from MOD-002 — the customer does not need to claim the bonus.
Rate change notice: for variable rate increases, customers receive advance notification (minimum 14 days) via push notification and in-app message before the new rate applies. Rate decreases take effect on the published effective date.
Statements¶
Generated monthly by MOD-113 and delivered to the in-app document vault, where they are available as a PDF download. Each statement shows opening balance, all transactions, daily accrual entries, month-end interest credit, and closing balance. Statements are retained for 7 years and accessible at any time through the app.
Closing / exit terms¶
The account may be closed at any time. Accrued but uncredited interest is pro-rated to the closure date and credited before the final balance is transferred. There is no break cost, notice period, or penalty. The balance transfers to the customer's nominated account on the closure date. MOD-007 transitions the account to CLOSED.
Regulatory¶
New Zealand: Banking (Prudential Supervision) Act 1989; AML/CFT Act 2009; Privacy Act 2020; Financial Markets Conduct Act 2013. Interest income reportable by the customer under the Income Tax Act 2007.
Australia: Banking Act 1959; Financial Claims Scheme (APRA); AML/CTF Act 2006; Privacy Act 1988. Interest income reportable under the Income Tax Assessment Act 1997.
Governing policies¶
- CON-001 — Customer Fairness & Conduct Policy
- CON-004 — Product Disclosure & Sales Practice Policy
- CON-005 — Fee & Pricing Transparency Policy
- PAY-001 — Payment Operations Policy
- AML-003 — Know Your Customer (KYC) & Identity Verification Policy
- PRI-001 — Privacy Policy
- CON-006 — Product suitability and governance
Implementation modules¶
| Module | Name | Status |
|---|---|---|
| MOD-001 | Double-entry posting engine | Deployed |
| MOD-002 | Immutable transaction log | Deployed |
| MOD-003 | Real-time balance engine | Deployed |
| MOD-005 | Daily accrual calculator | Deployed |
| MOD-006 | Rate change propagation | Deployed |
| MOD-007 | Account state machine | Deployed |
| MOD-020 | Pre-payment validation suite | Deployed |
| MOD-044 | JWT role-based access control | Deployed |
| MOD-049 | Open banking consent management | Deployed |
| MOD-068 | Authentication & session management | Deployed |
| MOD-105 | Product eligibility engine | Not started |
| MOD-110 | Fee engine | Deployed |
| MOD-113 | Statement generation | Not started |
Compiled 2026-05-22 from source/entities/products/PRD-002.yaml