Youth Savings Account¶


Product ID	`PRD-022`
Launch tier	2
Jurisdiction	NZ + AU
Status	Planned
Regulations	Privacy Act 2020 · Privacy Act 1988 · NZ Banking Code · ABA Banking Code · AML/CFT Act 2009 · AML/CTF Act 2006

Overview¶

A savings account for customers under 18, held in the minor's name with a parent or legal guardian as the authorised signatory. The account is designed to develop savings habits: no fees, a competitive interest rate, and simple in-app management.

The parent or guardian controls the account until the minor turns 18, at which point the account graduates automatically to a standard savings product (PRD-002 or PRD-001) with the customer's own authority. Payment functionality is restricted — funds cannot be transferred out without the guardian's approval.

Available to personal customers in NZ and AU.

Key terms¶

Term	Detail
Account holder	Minor (under 18)
Authorised signatory	Parent or legal guardian
Interest rate	Competitive youth rate, tenant-configurable; typically higher than the standard savings rate
Interest frequency	Monthly
Minimum balance	$0
Monthly fee	None
Payment restrictions	Outward transfers require guardian authorisation
Card	No debit card issued
Graduation age	18 — automatic product graduation
Minor access	Read-only access via a linked login once the minor turns 13 (configurable)
Guardian access	Full digital access throughout the minor period

System capabilities¶

MOD-009 performs eIDV on the parent or guardian (full KYC). The minor's identity is verified using a birth certificate or equivalent document stored in MOD-073 — a liveness check is not required for minors.

MOD-007 (account state machine) supports a minor_account state with restricted payment permissions. MOD-051 (financial automation rules) blocks outward payment initiation unless the guardian's session token is present.

On the minor's 18th birthday: MOD-007 emits a graduation event, MOD-063 notifies both the now-adult customer and the guardian, and an account transition workflow converts the account to a standard savings product with the adult customer's own authority.

Eligibility¶

The minor must be under 18 at account opening. A parent or legal guardian must be an existing customer with completed KYC, or must complete KYC during the account opening flow. The guardian must be an NZ or AU resident. No minimum opening deposit is required.

Account opening¶

The guardian opens the account on behalf of the minor via the app (or branch if the teller module is available). If the guardian has not already completed KYC, this is done as part of the opening flow. The minor's identity documents — birth certificate or passport if held — are uploaded and stored in MOD-073.

MOD-050 delivers product disclosure at opening, including the account restrictions, payment controls, and graduation terms. The guardian provides explicit consent for the minor's data processing under MOD-049. Both the NZ Privacy Act 2020 and AU Privacy Act 1988 govern the processing of children's personal data, and this consent is stored against the account record.

Fee structure¶

No monthly fee. No transaction fee. No minimum balance fee. The youth interest rate is a separately configured rate tier in MOD-110, distinct from the standard savings rate.

Interest calculation¶

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

On graduation to an adult product, accrued interest up to the graduation date is paid out at the youth rate. Subsequent accrual applies at the adult product rate.

Statements¶

Monthly statements are delivered via MOD-113 to the guardian's document vault (MOD-073). On graduation, statement delivery transfers to the account holder's own vault.

Product graduation at age 18¶

Graduation is triggered by the account holder's 18th birthday as recorded on their customer record in MOD-009.

Process:

MOD-007 emits a bank.core.minor_account_graduation event on the account holder's 18th birthday.
MOD-063 notifies the guardian and the now-adult customer.
The customer is prompted to complete their own KYC liveness check if not already done.
Guardian authority is removed from the account.
The account converts to the standard savings product (PRD-002 or PRD-001 based on jurisdiction and customer preference).
The customer gains full payment authority.
Guardian read access is retained for 30 days post-graduation (configurable per tenant) to allow for orderly transition.

Regulatory compliance¶

AML/CFT: Minor accounts are considered lower risk for AML purposes. Standard customer due diligence applies to the guardian as the controlling party (MOD-010). The minor's identity verification uses documentation rather than liveness check, which is appropriate for the risk profile of this product class.

Privacy: Parental or guardian consent for data processing is required and stored in MOD-049. Data is processed for the minor's benefit, with consent from the guardian as required under the NZ Privacy Act 2020 and AU Privacy Act 1988 for children under 13. For minors aged 13–17, the consent model may allow the minor's own agreement in addition to the guardian's, subject to jurisdiction-specific rules.

NZ Banking Code: Banks must not open accounts for minors without parental or guardian consent. This requirement is enforced by the opening workflow — the account cannot be created without the guardian's confirmed consent step.

CON-003 (Vulnerable Customer Policy): Minors are a protected class under the bank's vulnerable customer framework. Product design, communications, and fee structures must reflect appropriate care for this customer segment. The zero-fee structure and restricted payment controls are direct expressions of this obligation.

CON-004 (Product disclosure): Full disclosure of account terms, restrictions, and graduation conditions is delivered at opening via MOD-050.

CON-005 (Fee transparency): No fees apply to this product. Any future fee introduction would require disclosure and consent under CON-005 before taking effect.

Governing policies¶

AML-002 — Customer Due Diligence (CDD) Policy
AML-003 — Know Your Customer (KYC) & Identity Verification Policy
CON-001 — Customer Fairness & Conduct Policy
CON-003 — Vulnerable Customer Policy
CON-004 — Product Disclosure & Sales Practice Policy
CON-005 — Fee & Pricing Transparency 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-009	eIDV & document verification	Deployed
MOD-049	Open banking consent management	Deployed
MOD-050	Disclosure enforcement module	Deployed
MOD-063	Notification orchestration	Deployed
MOD-072	Customer profile & settings	Deployed
MOD-113	Statement generation	Not started

Compiled 2026-05-22 from source/entities/products/PRD-022.yaml