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Savings products on the Lendsqr admin console
Consider a microfinance institution that wants to offer its customers more than just loans. To build long-term relationships with borrowers and create a more sustainable lending ecosystem, the institution decides to launch three savings options: a fixed investment plan for customers who want to grow their money over a set period, a regular savings plan for customers who want to save incrementally, and an interest-free savings option for customers whose faith prohibits the earning of interest. All three can be configured and managed directly from the Lendsqr admin console using savings products.
Savings products are one of the most powerful tools available to lenders on Lendsqr. They allow you to define the structure and terms of your savings offerings, set the minimum and maximum amounts customers can save, configure interest rates and tenor ranges, and create multiple variants under a single product.
This guide explains what savings products are, how they differ from savings offerings, the three common product types, and how to create and manage them on the admin console.
What are savings products?
A savings product is the core template or foundation for a savings service on Lendsqr. It defines the overall category and structure of the savings service you want to offer, including its name, description, and status. Think of it as the parent container that holds the specific configurations your customers will interact with.
Under each savings product, lenders create savings offerings. A savings offering is a specific variant or configuration built on top of the savings product. It defines the exact terms a customer will see and agree to, including:
The minimum and maximum amounts a customer can save
The applicable interest rate for the saved amount
The tenor range, meaning the minimum and maximum duration for which the savings can be held
For example, a lender might create a savings product called “Fixed Investments” and then configure multiple offerings under it, such as a three-month plan, a six-month plan, and a twelve-month plan, each with different minimum amounts and interest rates.
This two-level structure gives lenders the flexibility to offer a wide range of savings options to their customers without creating entirely separate products for each variation.
The three common types of savings products
Lenders on Lendsqr typically create three types of savings products. Understanding when and why to use each one will help you configure them effectively for your market.
Fixed investments
Fixed investments are savings products where a customer deposits a lump sum for a defined period and earns interest at the end of the tenor. The customer cannot withdraw the funds before the tenor expires without penalty, making this a low-risk, predictable option for lenders.
When to use: Fixed investments work well for customers who have a sum of money they do not need immediate access to and want to grow it over a set period. They are common among salaried workers who receive a bonus or windfall and want a structured way to save it.
Regular savings
Regular savings products allow customers to save incrementally over time, making deposits as frequently as they choose within the terms of the offering. Unlike fixed investments, these plans are more flexible and are designed for customers who want to build savings gradually from their income.
When to use: Regular savings are ideal for customers who cannot commit a lump sum upfront but want to develop a savings habit. They are particularly effective for lower-income borrowers who save small amounts weekly or monthly.
Halal savings
Halal savings products are interest-free savings options designed for customers whose religious beliefs prohibit the earning or paying of interest. Rather than earning interest, customers in a Halal savings plan may participate in profit-sharing arrangements or simply save without any interest component.
When to use: Halal savings are essential for lenders operating in markets with significant Muslim populations, including many markets across West Africa, East Africa, and the Middle East. Offering a Halal savings option demonstrates cultural sensitivity and significantly expands your addressable customer base.
Before you start
Before creating a savings product, confirm the following:
Roles and permissions Not every admin can create or edit savings products. To perform this action, a team member must be assigned a role that includes the “Savings Products” permission. Lenders can grant this by assigning the Finance role or by creating a custom role with savings product management permissions specifically selected. To review or update roles and permissions, navigate to Settings and select “Roles and Permissions”.
Plan your product structure Before opening the admin console, decide on the name and description of your savings product, the type of savings product you are creating, the offerings you want to configure under it, and the minimum and maximum amounts, interest rates, and tenor ranges for each offering. Having this information ready before you start will make the configuration process faster and reduce the risk of errors.
Currency and localisation If your savings offerings include monetary amounts or interest rates, make sure they are configured in the currency and format relevant to your market. Lendsqr supports lenders across multiple markets, so ensure your product settings reflect your local currency and regulatory requirements.
Step-by-step: How to create a savings product
Step 1: Navigate to savings products
Log in to your Lendsqr admin console using your work email address and password. On the left navigation pane, locate Back Office, expand “Product Management”, and select “Savings Products”. This will open the savings products page, where all existing savings products are listed.
Step 2: Create a new savings product
Click the button to create a new savings product at the top of the page. A form will appear with the following fields to complete:
Name — enter a clear and descriptive name for the savings product, e.g. “Fixed Investments” or “Regular Savings”
Description — provide a brief explanation of what the savings product is and who it is for
Status — toggle the status to active if you want the product to be available immediately, or leave it inactive if you are still configuring it
Step 3: Configure savings interest rates
Once the product is created, configure the savings interest rates applicable to this product. Interest rates determine how much customers earn on their saved amounts over the tenor period. For Halal savings products, ensure the interest rate is set to zero to reflect the interest-free nature of the product.
Step 4: Save the product
Once all fields are correctly filled in, click “Save” to create the savings product. A confirmation message will appear indicating that the product has been successfully created.
Step-by-step: How to create a savings offering under a product
Once your savings product is created, you need to configure at least one savings offering under it. Savings offerings define the specific terms customers will see when they access the product.
Step 1: Open the savings product
Navigate to the Savings Products page, locate the product you want to add an offering to, and click on it to open its details page.
Step 2: Add a new offering
Click the option to add a new offering under the product. A form will appear where you can configure the following:
Minimum amount — the lowest amount a customer can save under this offering
Maximum amount — the highest amount a customer can save under this offering
Interest rate — the rate of interest applicable to savings within this offering
Tenor range — the minimum and maximum duration for which the savings can be held
Step 3: Save the offering
Once all fields are correctly filled in, click “Save” to create the offering. It will now appear under the savings product and be available to customers within the scope of that product.
Best practices
Use clear, descriptive product names that your customers will immediately understand. Avoid internal codes or abbreviations in product names that are customer-facing.
Configure multiple offerings under a single product rather than creating separate products for each variation. This keeps your product list manageable and makes it easier to report on savings performance by product type.
Set realistic minimum amounts for your market. A minimum that is too high will exclude lower-income customers who could benefit from saving. Research the typical disposable income of your target customers before setting this figure.
Review interest rates regularly to ensure they remain competitive and compliant with any regulatory requirements in your market. Interest rate regulations vary across different countries and regions.
Test each product before activating it by reviewing the configuration carefully and confirming all offerings are correctly set up. Once a product is active and customers begin saving, making changes to the terms may affect existing savers.
