How to create a savings product

Introduction

Your customers want to save, but they need structure to do it consistently. Some want to lock away funds for a fixed period and earn returns at the end. Others want a disciplined savings plan that keeps their money protected until a specific goal is reached. A well-configured savings product gives your customers the framework they need while keeping your lending operation in control of the terms.

On the Lendsqr admin console, you can create savings products that define exactly how your customers save, how long they save for, and what they earn in return. This guide walks you through the full setup process, from understanding the form fields to publishing your product and avoiding common configuration mistakes.

Before you begin

YYou need admin-level access with product management permissions to create savings products on the Lendsqr admin console. If you do not see the savings product option under Product Management, check your role and permissions with your Super Admin before proceeding.

Prepare the following details before you open the form:

• The savings product type you want to offer: fixed savings or locked savings.
• The minimum and maximum savings amount you will accept from customers.
• The tenor and tenor type for the product.
• The interest rate you will pay customers on their savings.
• The specific offerings you want to present to customers within this product.

Having these details ready before you start reduces the chance of incomplete configurations and makes the setup process significantly faster.

Understanding savings product types

Lendsqr supports two savings plan types. The difference between them goes beyond naming. Each type follows distinct rules for interest accrual, fund accessibility, and early exit penalties. Choosing the wrong type creates a product that does not behave the way your customers expect.

Fixed savings or investment

A fixed savings product locks the customer’s funds for a defined period. The customer commits a specific amount upfront and cannot access it until the tenor expires. The product pays a fixed return at maturity.

Interest accrues over the full tenor. For example, a customer saves NGN 100,000 in a 6-month fixed savings product at 12% per annum. At maturity, they receive NGN 106,000 — their NGN 100,000 principal plus NGN 6,000 in interest.

What happens with early withdrawal

Customers who withdraw before the tenor ends forfeit some or all of their accrued interest. The penalty depends on your product configuration. Some lenders apply a flat penalty fee. Others reduce the interest rate to zero on early withdrawals. Define your penalty structure before publishing so customers understand the consequences upfront.

This product type suits customers who want a guaranteed return and can commit funds for a fixed period. It suits lenders who want to deploy funds predictably and manage liquidity with confidence.

Locked savings plan

A locked savings plan also restricts early withdrawal. However, it works differently from fixed savings in two key ways: how customers contribute and when interest becomes accessible.

How contributions work

Rather than one upfront deposit, customers contribute to the plan over time. They save toward a target amount or goal. This encourages regular saving behaviour rather than single lump-sum deposits.

How interest accrues

Interest accrues progressively as the customer saves. The calculation builds on each contribution rather than on a fixed principal set at the start. This gives lenders more flexibility in structuring the product but makes the final interest amount less predictable for customers.

What happens with early withdrawal

Early withdrawal from a locked savings plan may result in a penalty, a reduced interest payout, or a complete forfeiture of accrued interest. Define your early exit rules clearly before publishing this product type.

This product type suits customers saving toward a specific goal, such as school fees, a business investment, or a major purchase. It suits lenders who want to build consistent saving habits among their customer base.

Understanding the form fields

The savings product form has three sections: product details, product offerings, and additional details. Each field controls a specific aspect of how your product behaves. Understanding what each field does prevents misconfiguration and saves time during setup.

Product details section

This is the first section you fill in. It defines the core parameters of your savings product. Every offering you configure later must stay within the bounds you set here.

Product name

This is the name of your savings product as it appears to customers on your web app. Use a name that communicates the product’s purpose and tenor clearly. For example, “90-Day Fixed Savings” tells a customer exactly what they are signing up for. “Savings Plan A” does not. Supported value: Any text string. Required field.

Minimum amount

This is the lowest amount a customer can save under this product. Set this based on your target customer’s realistic savings capacity. For instance, if most of your customers save between NGN 5,000 and NGN 50,000 per month, a minimum of NGN 500,000 will exclude the majority of your audience before they even begin.

Maximum amount

This is the highest amount a customer can save under this product. It caps individual savings balances and helps you manage your liability exposure. As a result, set this in line with your liquidity management strategy and any applicable regulatory limits on deposit-taking. Supported value: Any positive numeric value in the smallest currency unit, greater than the minimum amount. Required field.

Tenor

This is the duration of the savings product. Enter this as a whole number. The system reads the tenor alongside the tenor type field to determine the full duration. Supported value: Any positive integer. Required field.

Tenor type

This is the unit of duration that applies to your tenor value. This field only accepts three specific values. Any other input will cause the product to behave unexpectedly. Supported values: “days”, “months”, or “years”. Required field.

Interest rate

This is the annual interest rate you pay customers on their savings balance. Enter this as a percentage. Before publishing, confirm that this rate is financially sustainable and aligns with your product pricing model. Supported value: Any positive numeric value expressed as a percentage. Required field.

Product offerings section

Once you complete the product details, the next step is to configure your offerings. Offerings are the specific savings options your customers select when they sign up. They function as packages within your savings product, each with its own label, description, amount, and tenor. All offering parameters must stay within the bounds you set in the product details section.

Label

This is the name of the offering as customers see it. Be specific and outcome-focused. For example, “Save NGN 10,000 monthly for 3 months” is clearer and more motivating than “3-Month Plan.” Supported value: Any text string. Required field.

Description

This is a brief explanation of what the offering provides. Use it to highlight the key benefit or outcome for the customer. For example, “Save consistently for 6 months and earn 10% interest on your total deposit at maturity.” Supported value: Any text string. Optional field.

Principal

This is the savings amount for this specific offering. It must fall within the minimum and maximum amount bounds you set in the product details section. Enter this in the smallest currency unit for your market. Supported value: Any positive integer within the product’s configured amount range. Required field.

Tenor and tenor type

These fields define the duration for this specific offering. The offering tenor must not exceed the product’s configured tenor. In other words, an offering cannot run longer than the product it belongs to. Supported values: Any positive integer for tenor. “days”, “months”, or “years” for tenor type. Required fields.

Additional details section

This is the final section of the form. Here, you select the savings plan type and configure any remaining product-level settings.

Savings plan type

Select either “Fixed savings or investment” or “Locked savings plan” based on the product type you decided on before starting. This selection determines how interest accrues, how withdrawals are handled, and what penalties apply for early exit. Review the product type descriptions earlier in this guide before making this selection.

Quick setup checklist

Use this checklist before clicking Create to confirm your product is fully configured:

• Product name entered and clearly communicates the product purpose
• Minimum amount set in the correct currency unit
• Maximum amount set above the minimum amount
• Tenor entered as a whole number
• Tenor type set to “days”, “months”, or “years”
• Interest rate entered as a percentage
• At least one offering configured with label, principal, tenor, and tenor type
• All offering parameters fall within the product detail bounds
• Savings plan type selected: fixed savings or locked savings
• All additional detail fields completed
• Full configuration reviewed before clicking Create

How to create a savings product

As an admin, a savings product can be created with the right permissions on Lendsqr’s admin console in just a few steps:

• Go to the tab under product management

• Click on the button at the top right corner to open the setup form.

• Enter your details in this section of the form to set up key parameters like the amount range, tenor, and interest rate

• Once you’re done filling out the form, click the “create” button to publish the product.

Why savings product configuration matters

A poorly configured savings product creates problems on both sides. Customers who sign up for a product with unclear terms lose trust when their expectations are not met. Lenders who misconfigure interest rates or tenor parameters face operational and financial consequences that are difficult to unwind after customers have already enrolled.

Taking time to configure your savings product correctly from the start protects your customers’ experience and your organization’s financial position. Test your product internally before promoting it to your customer base. Confirm that the offerings display correctly on your web app and that the terms are clearly communicated at every stage of the signup flow.

UX considerations

How you present your savings product to customers shapes whether they enrol and whether they stay. A few principles to keep in mind.

Use product names and offering labels that reflect your customers’ goals, not internal product codes. “Save for School Fees” resonates more than “Savings Plan B.”

Write offering descriptions that speak to outcomes. Tell customers what they will earn or achieve by the end of the tenor. “Save NGN 50,000 over 6 months and earn NGN 5,000 in interest” is more compelling than “6-month savings plan at 10% per annum.”

Set amount ranges that reflect your actual customer base. If most of your customers save between NGN 5,000 and NGN 100,000, configuring a minimum of NGN 500,000 will exclude the majority of your target audience.

Limit the number of offerings to what is genuinely distinct. Three to five well-defined offerings are easier for customers to navigate than ten options with marginal differences between them.

Read further: What is Lendsqr, and how does it work?