On-Call Account
A savings account where you can deposit and withdraw money at any time. Lower interest than term deposits but instant access. Good for emergency funds.
An on-call account (often just called a savings account) is a bank account where you can get at your money any time, without penalty. Unlike a term deposit, there is no lock-in period. A notice saver is a different product despite sounding similar: it pays a little more and asks for a set period of notice, often 30 days or more, before you can withdraw.
The interest rate on an on-call account is lower than a term deposit, but the flexibility makes it ideal for money you might need at short notice, like an emergency fund.
In New Zealand, most banks offer on-call savings accounts with varying interest rates. Some require a minimum balance or limit the number of withdrawals per month. It's worth comparing options, as rates can differ significantly between banks.
Why this matters
An on-call account is the best place to keep your emergency fund. Financial experts recommend having 3-6 months of living expenses in an easily accessible account. The slightly lower interest rate is worth it for the peace of mind that comes with knowing you can access your money instantly if your car breaks down or you lose your job.
More Banking terms
Open Banking
A system that lets you securely share your bank data with third-party apps via APIs. In NZ, Akahu provides open banking connections to all major banks. You control what data is shared and can revoke access anytime.
Direct Debit
An automatic payment where a company takes money from your account on a set schedule. Used for power bills, phone plans, insurance. You authorise it once and it happens automatically.
Automatic Payment (AP)
A payment you set up yourself to go out automatically on a schedule. Unlike a direct debit (which the company controls), you control the amount and timing of an AP.
Term Deposit
Money locked in a bank account for a fixed period (3-12 months) in exchange for a higher interest rate. You can't withdraw early without a penalty. Good for savings you won't need soon.
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