Notice periods
A notice is a customer’s dated commitment to withdraw an amount. They give notice today, the money pays out when the notice expires. Until then it stays where it is and earns the full rate.
A notice period is a dated hold against available balance — the general concept. Notice deposits are one product built on it.
The life of a notice
| Status | What it means | Can the customer cancel? |
|---|---|---|
| Pending | Notice given, expiry in the future | Yes |
| Instructed | The expiry-day walk has raised the payout | No — the payment is in the rail |
| Paid | The settled payment has posted | No |
| Cancelled | Cancelled while Pending | — |
Expiry pays out automatically. Nothing else is required of the customer, and no operator has to remember. The payout runs inside the day walk, which is also the walk the forecast runs — so every pending notice’s outgoing payment already shows in the forecast.
Worked example
An account holds 100,000 in Current on a 32-day notice product.
- On 1 March the customer gives notice on 30,000. Expiry is 2 April: 1 March plus 32 calendar days.
Currentstays at 100,000. The full 100,000 keeps accruing — giving notice moves no money.- The customer may give a second notice on up to 70,000. The guard is
Currentminus the sum of Pending and Instructed notices; several concurrent notices are normal. - On 2 April at day-end the walk marks the notice Instructed and raises the payment. From this moment it cannot be cancelled.
- The payment settles to the destination and the notice becomes Paid.
The notice period is calendar days, not business days. A weekend or holiday expiry is untouched: the walk instructs at that day’s day-end and the settlement date shifts, exactly as for any other instruction.
Where the money goes
The destination is captured when the notice is given, from whichever of these your organisation allows on this product:
| Destination | What it is |
|---|---|
| The customer’s own bank account | An external account the customer holds elsewhere. This is the default. |
| A personal beneficiary | A third-party account captured for this notice, not in your directory |
| An approved beneficiary | An entry from your organisation’s approved-beneficiary directory |
| The customer’s own call account | A call account belonging to the same counterparty, in the same currency and operating entity. The transfer posts same-day, with no rail leg. |
Choosing a destination the notice does not allow is refused when you give the notice, not later. If the call account named is invalid by the time the notice expires — closed, or in the wrong state — the payout falls back to the nominated bank account and the outcome is recorded on the notice. Day-end never blocks and never parks a balance.
Taking money out early
Early withdrawal takes any funds, noticed or not, and pays out immediately. It charges a percentage of the amount withdrawn, at the rate your price list holds for early withdrawal. The fee is an editable input, so waiving it needs no separate mechanism. See price types for where that rate is set.
If an early withdrawal would drop the balance below the outstanding noticed total, the guard names the offending notices and requires they be cancelled first. Notices are never silently shrunk — the cancellation shows in the audit trail as its own act.
Closing an account by notice
A notice can be flagged full-balance. At expiry it force-capitalises accrued interest, pays the entire balance, and closes the account.
While a full-balance notice is Pending or Instructed, deposits are blocked. The account is on a closure path, and money accepted after the notice would either skip its notice period or quietly rewrite the customer’s instruction. Cancelling the notice re-opens deposits.
What a tenant configures
Offered notice periods and the rates against them are their own settings document. The periods a wizard offers (32, 60, 90 days, say) are a list, and rates are effective-dated bands over notice-days × amount. Adding a period or repricing a band is configuration, not a release.