Savings Account - V2 Configuration

Product Type: Interest-Bearing Deposit Account
Use Case: Personal savings, emergency fund, goal-based saving
Minimum Balance: ₦1,000 - ₦10,000
Interest Rate: 2% - 6.5% per annum (tiered)
Transaction Limits: 4-10 free withdrawals/month

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Overview

Savings accounts are interest-bearing deposit accounts designed for personal savings with tiered interest rates based on account balance. They offer limited withdrawal transactions to encourage saving behavior.

Key Features

• Tiered Interest Rates: Higher balances earn better rates
• Transaction Limits: Free withdrawals up to monthly limit
• Dormancy Tracking: Auto-dormancy after inactivity period
• Minimum Balance Requirements: Penalties for falling below threshold
• Daily Balance Interest: Interest calculated on daily balances
• Mobile & Online Banking: Digital-first access
• Auto-Savings: Standing order and round-up features

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YAML Field Reference

Basic Information Section

Field Name	Data Type	Required	Description	Example
productCode	String	✅ Yes	Unique product code	"SA-REGULAR-001"
productName	String	✅ Yes	Display name	"Regular Savings Account"
description	String	No	Product description	"Standard savings account"
isActive	Boolean	No	Product status	true
depositAccountType	String	✅ Yes	Account type	"Savings"
lineOfBusiness	Enum	No	Business classification	"Retail"

Minimum Balance Configuration

Field Name	Data Type	Required	Description	Example
minimumOpeningBalance	Decimal	✅ Yes	Required to open account	5000
minimumOperatingBalance	Decimal	✅ Yes	Ongoing minimum	1000
penaltyForBelowMinimum	Decimal	No	Monthly penalty fee	100
allowZeroBalance	Boolean	No	Permit ₦0 balance	false

Interest Configuration Section

Field Name	Data Type	Required	Description	Example
isEnabled	Boolean	✅ Yes	Whether interest is paid	true
calculationMethod	Enum	✅ Yes	Calculation approach	"DailyBalance"
compoundingFrequency	Enum	No	Interest compounding	"Monthly"
creditFrequency	Enum	✅ Yes	When interest is paid	"Monthly" or "Quarterly"
minimumBalanceForInterest	Decimal	No	Min balance to earn interest	1000

Tiered Interest Rates Section

Field Name	Data Type	Required	Description	Example
tiers[]	Array	✅ Yes	Interest rate tiers	See below
tiers[].from	Decimal	✅ Yes	Tier start amount	0
tiers[].to	Decimal	No	Tier end amount (null = unlimited)	100000
tiers[].rate	Decimal	✅ Yes	Interest rate (%)	2.0
tierCalculationMethod	Enum	No	How to apply tiers	"Blended" or "Marginal"

Example Tiered Structure:

tiers:
  - from: 0
    to: 100000
    rate: 2.0
  - from: 100000
    to: 1000000
    rate: 4.0
  - from: 1000000
    to: null  # No upper limit
    rate: 6.5

Transaction Limits Section

Field Name	Data Type	Required	Description	Example
maxFreeWithdrawalsPerMonth	Integer	✅ Yes	Free transactions allowed	4
excessWithdrawalFee	Decimal	✅ Yes	Fee per excess withdrawal	100
maxWithdrawalsPerDay	Integer	No	Daily limit	3
maxWithdrawalAmount	Decimal	No	Max single withdrawal	100000
dailyWithdrawalLimit	Decimal	No	Total daily withdrawal	500000

Dormancy Configuration Section

Field Name	Data Type	Required	Description	Example
automaticallySetAccountAsDormant	Boolean	✅ Yes	Auto-dormancy enabled	true
dormancyAfterXDays	Integer	✅ Yes	Days of inactivity	180
reactivationFee	Decimal	No	Fee to reactivate	500
notifyBeforeDormancy	Boolean	No	Send warning	true
warningDaysBefore	Integer	No	Days before dormancy	30

Fees Configuration Section

Field Name	Data Type	Required	Description	Example
fees[].code	String	✅ Yes	Fee code	"MAINT_FEE"
fees[].name	String	✅ Yes	Fee name	"Monthly Maintenance"
fees[].feeType	Enum	✅ Yes	Collection method	"Monthly"
fees[].calculationType	Enum	✅ Yes	Calculation type	"Flat"
fees[].value	Decimal	✅ Yes	Fee amount	50
fees[].minimum	Decimal	No	Minimum fee	50
fees[].maximum	Decimal	No	Maximum fee	500
fees[].glAccountId	Integer	✅ Yes	GL account	50001

Statement Configuration Section

Field Name	Data Type	Required	Description	Example
statementFrequency	Enum	No	How often statements sent	"Monthly"
electronicStatementFree	Boolean	No	Email statements free	true
paperStatementFee	Decimal	No	Printed statement fee	100
allowSMSAlerts	Boolean	No	Transaction SMS alerts	true
smsAlertFee	Decimal	No	Monthly SMS fee	50

Auto-Savings Configuration Section

Field Name	Data Type	Required	Description	Example
allowStandingOrders	Boolean	No	Enable recurring transfers	true
allowRoundUpSavings	Boolean	No	Round-up feature	true
roundUpTo	Decimal	No	Round to nearest	100
minimumStandingOrderAmount	Decimal	No	Min SO amount	1000

Eligibility Configuration Section

Field Name	Data Type	Required	Description	Example
minimumAge	Integer	No	Minimum age	18
maximumAge	Integer	No	Maximum age (0 = no limit)	0
allowMinorAccounts	Boolean	No	Allow under-18 accounts	true
minorAccountMaxBalance	Decimal	No	Max balance for minors	100000
requiredDocuments[]	Array	✅ Yes	Mandatory documents	["ValidID", "ProofOfAddress", "PassportPhoto"]
kycLevel	Enum	No	Required KYC tier	"Tier2"

Notifications Configuration Section

Field Name	Data Type	Required	Description	Example
sendWelcomeEmail	Boolean	No	Welcome message	true
sendMonthlyStatement	Boolean	No	Monthly statements	true
sendLowBalanceAlert	Boolean	No	Alert low balance	true
lowBalanceThreshold	Decimal	No	Alert threshold	5000
sendDormancyWarning	Boolean	No	Dormancy notification	true
channels.sms	Boolean	No	Enable SMS	true
channels.email	Boolean	No	Enable email	true
channels.push	Boolean	No	Enable push	true

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Complete Sample YAML Configuration

basicInfo:
  productCode: "SA-REGULAR-001"
  productName: "Regular Savings Account"
  description: "Standard savings account with tiered interest rates"
  isActive: true
  depositAccountType: "Savings"
  lineOfBusiness: "Retail"
  currencyCode: "NGN"

minimumBalanceConfig:
  minimumOpeningBalance: 5000
  minimumOperatingBalance: 1000
  penaltyForBelowMinimum: 100
  allowZeroBalance: false

interestConfig:
  isEnabled: true
  calculationMethod: "DailyBalance"
  compoundingFrequency: "Monthly"
  creditFrequency: "Monthly"
  minimumBalanceForInterest: 1000
  
tieredInterestRates:
  tiers:
    - from: 0
      to: 100000
      rate: 2.0
    - from: 100000
      to: 1000000
      rate: 4.0
    - from: 1000000
      to: null
      rate: 6.5
  tierCalculationMethod: "Blended"

transactionLimitsConfig:
  maxFreeWithdrawalsPerMonth: 4
  excessWithdrawalFee: 100
  maxWithdrawalsPerDay: 3
  maxWithdrawalAmount: 100000
  dailyWithdrawalLimit: 500000

dormancyConfig:
  automaticallySetAccountAsDormant: true
  dormancyAfterXDays: 180
  reactivationFee: 500
  notifyBeforeDormancy: true
  warningDaysBefore: 30

fees:
  - code: "MAINT_FEE"
    name: "Monthly Maintenance Fee"
    feeType: "Monthly"
    calculationType: "Flat"
    value: 50
    glAccountId: 50001
    waiveIfMinimumBalance: true
    waiveThreshold: 10000
  
  - code: "EXCESS_WD"
    name: "Excess Withdrawal Fee"
    feeType: "Transaction"
    calculationType: "Flat"
    value: 100
    glAccountId: 50002
  
  - code: "BELOW_MIN"
    name: "Below Minimum Balance Fee"
    feeType: "Monthly"
    calculationType: "Flat"
    value: 100
    glAccountId: 50003

statementConfig:
  statementFrequency: "Monthly"
  electronicStatementFree: true
  paperStatementFee: 100
  allowSMSAlerts: true
  smsAlertFee: 50

autoSavingsConfig:
  allowStandingOrders: true
  allowRoundUpSavings: true
  roundUpTo: 100
  minimumStandingOrderAmount: 1000

eligibilityConfig:
  minimumAge: 18
  maximumAge: 0
  allowMinorAccounts: true
  minorAccountMaxBalance: 100000
  requiredDocuments:
    - "ValidID"
    - "ProofOfAddress"
    - "PassportPhoto"
    - "BVN"
  kycLevel: "Tier2"

notificationsConfig:
  sendWelcomeEmail: true
  sendMonthlyStatement: true
  sendLowBalanceAlert: true
  lowBalanceThreshold: 5000
  sendDormancyWarning: true
  channels:
    sms: true
    email: true
    push: true

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Use Cases & Examples

Example 1: Standard Savings Account

Scenario: Young professional opening first savings account.

Customer Profile:

• Age: 25 years
• Employment: Salaried (₦150k/month)
• Savings Goal: Emergency fund

Account Opening:

minimumOpeningBalance: ₦5,000

Opening Deposit: ₦10,000 ✅
Documents: ID, Utility Bill, BVN ✅
KYC Level: Tier 2 ✅

Monthly Activity:

Month 1:
  Opening Balance: ₦10,000
  Deposits: ₦20,000 (salary savings)
  Withdrawals: 2 (₦5,000 each) - FREE
  Closing Balance: ₦20,000
  
  Interest Earned:
    Tier 1 (₦0-₦100k): ₦20,000 × 2% / 12 = ₦33
    
  Fees:
    Maintenance: ₦50
    
  Net: +₦20,000 deposits +₦33 interest -₦50 fee = ₦20,033

Example 2: Tiered Interest Calculation (Blended)

Scenario: Account with ₦500,000 balance.

Configuration:

tierCalculationMethod: "Blended"

tiers:
  - from: 0
    to: 100000
    rate: 2.0
  - from: 100000
    to: 1000000
    rate: 4.0

Interest Calculation (Blended Method):

Balance: ₦500,000

Since balance falls in Tier 2 (₦100k-₦1M), entire balance earns Tier 2 rate:
Monthly Interest = ₦500,000 × 4% / 12 = ₦1,667
Annual Interest = ₦500,000 × 4% = ₦20,000

Example 3: Transaction Limits and Fees

Scenario: Customer exceeds free withdrawal limit.

Configuration:

maxFreeWithdrawalsPerMonth: 4
excessWithdrawalFee: ₦100

Monthly Transactions:

Withdrawal 1: ₦10,000 (FREE - 1/4)
Withdrawal 2: ₦15,000 (FREE - 2/4)
Withdrawal 3: ₦20,000 (FREE - 3/4)
Withdrawal 4: ₦5,000 (FREE - 4/4)
Withdrawal 5: ₦8,000 (CHARGED ₦100)
Withdrawal 6: ₦12,000 (CHARGED ₦100)

Total Excess Fees: ₦200

Optimization:

Strategy 1: Consolidate Withdrawals
  Instead of 6 withdrawals, make 3 larger ones
  Savings: ₦200

Strategy 2: Plan Ahead
  Withdraw at month-end for next month needs
  Stay within 4-withdrawal limit

Strategy 3: Use Multiple Channels
  Some banks offer free ATM but charge teller
  Check fee schedule

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Tiered Interest Calculation Deep Dive

Blended Method (Simpler)

tierCalculationMethod: "Blended"

How It Works: Entire balance earns the rate of the tier it falls into.

Example:

Tiers:
  Tier 1: ₦0-₦100k @ 2%
  Tier 2: ₦100k-₦1M @ 4%
  Tier 3: ₦1M+ @ 6.5%

Balance: ₦150,000 (falls in Tier 2)
Interest: ₦150,000 × 4% / 12 = ₦500/month

Balance: ₦1,500,000 (falls in Tier 3)
Interest: ₦1,500,000 × 6.5% / 12 = ₦8,125/month

Marginal Method (More Complex)

tierCalculationMethod: "Marginal"

How It Works: Each portion of balance earns its respective tier rate.

Example:

Balance: ₦1,500,000

Tier 1: First ₦100,000 @ 2%
  = ₦100,000 × 2% / 12 = ₦167

Tier 2: Next ₦900,000 (₦100k to ₦1M) @ 4%
  = ₦900,000 × 4% / 12 = ₦3,000

Tier 3: Remaining ₦500,000 (above ₦1M) @ 6.5%
  = ₦500,000 × 6.5% / 12 = ₦2,708

Total Monthly Interest: ₦167 + ₦3,000 + ₦2,708 = ₦5,875

Comparison:

₦1,500,000 Balance:

Blended Method: ₦8,125/month (6.5% on all)
Marginal Method: ₦5,875/month (tiered calculation)

Difference: ₦2,250/month in favor of Blended

Why? Blended rewards higher balances more aggressively.

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Dormancy Management

dormancyConfig:
  automaticallySetAccountAsDormant: true
  dormancyAfterXDays: 180

Dormancy Timeline:

Day 0: Last transaction
Day 30: No activity (Normal)
Day 60: No activity (Normal)
Day 90: No activity (Normal)
Day 150: Warning notification sent
Day 180: Account marked DORMANT ❌

What Changes:
  - Cannot make withdrawals
  - Cannot make deposits via ATM
  - Online banking disabled
  - Interest may stop accruing
  - Requires reactivation

Reactivation Process:

Code Removed

Implementation details removed for security.

Contact support for implementation guidance.

Preventing Dormancy:

ANY customer-initiated transaction resets the clock:
  - Deposit (branch, ATM, transfer-in)
  - Withdrawal
  - Transfer-out
  - Balance inquiry (some banks count this)
  - Standing order execution
  
Transactions that DON'T count:
  - Bank charges
  - Interest credit
  - System reversals
  - Automated fees

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Daily Balance Interest Calculation

interestConfig:
  calculationMethod: "DailyBalance"
  compoundingFrequency: "Monthly"
  creditFrequency: "Monthly"

Daily Calculation:

Daily Interest = (Closing Balance × Annual Rate) / 365

Example (30-day month):
  Day 1: ₦10,000 × 2% / 365 = ₦0.55
  Day 2: ₦15,000 × 2% / 365 = ₦0.82
  Day 3: ₦20,000 × 2% / 365 = ₦1.10
  ...
  Day 30: ₦25,000 × 2% / 365 = ₦1.37

  Sum all 30 days = Monthly Interest

With Deposits & Withdrawals:

Opening Balance: ₦50,000

Day 1-10: ₦50,000
  Interest: ₦50,000 × 4% / 365 × 10 days = ₦54.79

Day 11: Deposit ₦30,000 → Balance ₦80,000
Day 11-20: ₦80,000
  Interest: ₦80,000 × 4% / 365 × 10 days = ₦87.67

Day 21: Withdrawal ₦40,000 → Balance ₦40,000
Day 21-30: ₦40,000
  Interest: ₦40,000 × 4% / 365 × 10 days = ₦43.84

Total Month Interest: ₦54.79 + ₦87.67 + ₦43.84 = ₦186.30

Compounding:

Month 1: Principal ₦100,000
  Interest: ₦333
  New Balance: ₦100,333

Month 2: Principal ₦100,333 (includes Month 1 interest)
  Interest: ₦334
  New Balance: ₦100,667

Effect: Interest earns interest (compound growth)

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Minimum Balance Penalties

minimumBalanceConfig:
  minimumOperatingBalance: ₦1,000
  penaltyForBelowMinimum: ₦100

Monthly Check:

Code Removed

Implementation details removed for security.

Contact support for implementation guidance.

Example:

Month of January:
  Day 1-20: Balance ₦5,000 (Above minimum ✅)
  Day 21: Withdrawal ₦4,500 → Balance ₦500 (Below minimum ❌)
  Day 22-31: Balance ₦500
  
Minimum Balance for Month: ₦500

Result: ❌ Below ₦1,000 minimum
Penalty: ₦100 charged at month-end
New Balance: ₦500 - ₦100 = ₦400

Fee Waiver:

fees:
  - code: "MAINT_FEE"
    waiveIfMinimumBalance: true
    waiveThreshold: ₦10,000

Benefit:

If monthly average balance ≥ ₦10,000:
  Maintenance Fee: WAIVED ✅
  
If monthly average balance < ₦10,000:
  Maintenance Fee: ₦50 charged ❌

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Auto-Savings Features

Standing Orders (Recurring Transfers)

autoSavingsConfig:
  allowStandingOrders: true
  minimumStandingOrderAmount: ₦1,000

Setup:

Source: Current Account
Destination: Savings Account
Amount: ₦10,000
Frequency: Monthly
Start Date: Every 5th of month
End Date: After 12 months

Execution:
  Jan 5: ₦10,000 transferred ✅
  Feb 5: ₦10,000 transferred ✅
  Mar 5: ₦10,000 transferred ✅
  ...
  Dec 5: ₦10,000 transferred ✅
  
Total Saved: ₦120,000 (automated)

Round-Up Savings

autoSavingsConfig:
  allowRoundUpSavings: true
  roundUpTo: ₦100

How It Works:

Transaction 1: POS Payment ₦1,450
  Rounded Up: ₦1,500
  Round-Up Amount: ₦50 → Savings Account

Transaction 2: Transfer ₦3,780
  Rounded Up: ₦3,800
  Round-Up Amount: ₦20 → Savings Account

Transaction 3: Bill Payment ₦12,320
  Rounded Up: ₦12,400
  Round-Up Amount: ₦80 → Savings Account

Monthly Round-Ups: ₦50 + ₦20 + ₦80 = ₦150
Annual Round-Ups: ~₦1,800 (painless savings!)

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Validation Rules

Minimum Balance Validation

Code Removed

Implementation details removed for security.

Contact support for implementation guidance.

Transaction Limit Validation

Code Removed

Implementation details removed for security.

Contact support for implementation guidance.

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Troubleshooting

Issue: "Below minimum balance penalty charged"

Cause: Account balance fell below minimum during the month.

Solutions:

Minimum: ₦1,000
Current Balance: ₦500
Penalty: ₦100

Option 1: Deposit to Meet Minimum
  Deposit ₦600 → Balance ₦1,100 ✅
  
Option 2: Close Account
  If not actively using, consider closure
  
Option 3: Upgrade Account Type
  Some accounts have lower/no minimum
  
Prevention:
  - Set low balance alert
  - Link overdraft protection
  - Automatic transfer from another account

Issue: "Excess withdrawal fees accumulating"

Cause: More than 4 withdrawals per month.

Solutions:

Monthly Withdrawals: 8
Free Limit: 4
Excess: 4 × ₦100 = ₦400 fees

Option 1: Reduce Withdrawal Frequency
  Plan withdrawals, withdraw larger amounts
  Reduce from 8 to 4 monthly
  Save ₦400/month

Option 2: Upgrade Account
  Consider current account (unlimited free)
  Evaluate if benefit > cost

Option 3: Use Multiple Accounts
  Spread transactions across accounts
  Each account gets 4 free

Issue: "Account marked dormant"

Cause: No transactions for 180 days.

Solutions:

Status: DORMANT
Reactivation Fee: ₦500

Steps:
1. Visit branch with valid ID
2. Update KYC if needed
3. Make deposit or withdrawal
4. Pay reactivation fee
5. Account becomes active

Prevention:
  - Make transaction every 3-6 months
  - Set up standing order (auto-activity)
  - Enable balance inquiry SMS (may count as activity)

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Migration from V1

V1 Savings Account Mapping

V1 Field/Table	V2 YAML Path
MinimumBalance	minimumBalanceConfig.minimumOperatingBalance
InterestRate	tieredInterestRates.tiers[].rate
WithdrawalLimit	transactionLimitsConfig.maxFreeWithdrawalsPerMonth
DormancyPeriod	dormancyConfig.dormancyAfterXDays
MaintenanceFee	fees[].value (where code = "MAINT_FEE")
InterestCalculationMethod	interestConfig.calculationMethod

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Last Updated: January 2, 2026
API Version: V2 (BPMCore)
Product Category: Deposit Products
Complexity: ⭐⭐⭐ (Moderate - Interest Tiering)