Savings product settings

This is step 4 of the create wizard. Extra fields appear only when you turn a feature on. Money fields stay disabled until you choose a currency.

Officers who open a savings account see these as defaults on Optional and can change them for that account.

Balances

• Minimum opening balance — optional. The smallest amount that can activate an account on this product. Leave blank if an account may open with zero.
• Minimum balance for interest — optional. Interest is not calculated while the balance is below this floor. Use it so tiny balances do not earn (or cost you) interest. This is not the same as the minimum required balance below.
• Minimum required balance — optional. A floor the account should stay above after withdrawals.
• Enforce minimum required balance — when on, a withdrawal that would take the account below the minimum required balance is refused. When off, the minimum is informational.

Lock-in period

Optional. The period and unit sit in one field, for example 6 months. Units come from the product template (days, weeks, months, or years).

During lock-in the client cannot withdraw (the core banking system enforces this). Use it for compulsory or contractual savings. Leave the field blank if funds may be withdrawn as soon as the account is active.

Clearing the period also clears the unit.

Withdrawal fee on transfers

Apply withdrawal fee to transfers — whether a withdrawal fee charge also applies when funds move to another account, not only when cash is taken out.

This does not create a fee by itself. Attach a withdrawal-fee charge on the charges step, or the toggle has nothing to apply.

Annual fee on the product

Optional annual fee amount. If you enter an amount, you must also choose the day and month it falls due.

This is the product-level annual fee the core banking system still accepts on the savings product itself. Prefer attaching an annual fee charge when you need the same fee on the account’s Charges section, with pay / waive / stop. If you set both, you can end up collecting two annual fees — use one approach.

Overdraft

Turn Allow overdraft on if this product may go below zero.

Then you can set:

• Overdraft limit — how far below zero the account may go. Required if Allow lien is also on.
• Overdraft interest rate — nominal annual rate charged on the overdrawn amount (income to the institution). Separate from the nominal annual interest rate paid on a positive balance.
• Minimum overdraft for interest — optional floor. Overdraft interest is not calculated until the overdrawn amount reaches this.

Even if you leave overdraft off, cash or accrual accounting still needs the overdraft GL accounts (overdraft portfolio, income from interest, write-off). Those sit unused until an account actually overdraws.

Lien

A lien is a hold or claim on the account — typically so the institution (or a linked loan) can block part of the balance.

Turn Allow lien on to set an optional maximum lien limit. If overdraft and lien are both on, both limits are required and the overdraft limit cannot be greater than the lien limit.

Withhold tax

Turn Withhold tax on to deduct tax from interest when it is posted. You must pick a tax group. The picker is empty until a group exists.

Tax withheld shows on the savings workspace when it applies. The tax group defines the rate and the liability account the deduction posts to — not this product’s interest-on-savings expense account.

Dormancy

Turn Track dormancy on to age an account from last activity into inactive, then dormant, then escheat.

You must enter three day counts, each greater than the last:

1. Days to inactive — no customer-initiated activity for this many days. The account can still show as inactive next to its usual status.
2. Days to dormant — longer still. Dormant accounts typically stop earning and may block withdrawals, depending on your institution’s process.
3. Days to escheat — unclaimed funds. Escheat moves the balance off the client’s savings control onto an escheat liability account (unclaimed property), so you no longer treat it as a live deposit.

When accounting is Cash or Accrual, escheat also needs that escheat liability GL account. None does not.

The savings workspace shows these states next to status when they apply. See Savings.