Kiwibank has introduced the Notice Saver deposit option to the New Zealand market, as competition to attract deposits forces banks to get more innovative in their offerings to customers.The new deposit product takes its cue from "Notice" accounts available in the US, the UK and South Africa. It offers investors a high interest rate combined with the flexibility to withdraw deposits with appropriate notice.Kiwibank is offering a five per cent interest rate for a minimum deposit of NZ$2,000 and permits withdrawal of all or some of the funds with 32 days notice.  Currently, some banks offer this rate for five and six-month term deposits.Notice Saver has the potential to boost Kiwibank's deposit base substantially because of the high returns it offers, but its disadvantage is that it will likely be categorised under demand deposits. However, with Kiwibank placed comfortably as far as meeting the minimum 65 per cent core funding ratio is concerned, it can easily afford to increase this proportion of its funding. A luxury some large banks may not enjoy.