Overview
A Savings is an object that lives under a customer, at the same level as a DepositAccount. Just like customers can have multiple deposit accounts, customers can have multiple savings. Savings are the foundation for many investment-oriented use cases like regular, target or fixed savings and can be created for a specific period of time such as 60 days, 90 days or 365 days and are not locked by default.
When a Savings is created it starts with a principal, return and balance of 0. This property specifies the current amount deposited in the Savings.
Deposit
A deposit is the movement of funds into a Savings. A deposit is made between a saving object and a depositAccount object. When a Deposit is made into a Savings, the principal_balance on the saving will increase, and the balance on the bank account will decrease by the same amount.
Automatic Deposit
You can offer Auto Save functionality to your end customers to fund their savings by enabling the autoDeposit and setting the frequency and amount for the deposit.
Withdrawals
A withdrawal is the movement of funds out of a Savings. A withdrawal is also made between a Saving object and a depositAccount object. Withdrawals are automatically initiated and credited to the depositAccount at maturity but withdrawal can also be initiated before maturity(for the case of breaking a savings).
When a withdrawal is made, the principal_balance on the savings will decrease, and the available_balance on the depositAccount will increase by the same amount. After a withdrawal, the funds added to the depositAccount can be transferred or re-saved.
Savings can have multiple payments and withdrawals, similar to how deposit accounts have multiple transfers associated with them.
Interest
Based on the terms configured between and the bank you are partnered with, you are entitled to be paid interest for the total principal of your savings plan. You may share that interest with your end customers, or claim it as revenue. Whatever your decision is, it must be properly disclosed and specified in your end customer terms.
Anchor makes the necessary interest calculations for you and distributes the interest at maturity of each savings plan, in accordance with the terms that are defined in your legal contracts and set in the your terms.
Note
Earning interest on each deposit made will begin 24 hours after a deposit is made and interest will be computed daily.
Technical Implementation
Review Anchor's documentation for Savings
- Create an Individual customer resource by calling the POST /customer endpoint if the customer does not already exist.
- Create a Savings by making a request to the POST /savings endpoint
- Specify the terms, duration and setting
- Make a Deposit for a Savings by making a request to the POST /savings/:id/deposit endpoint