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Circle·Software Engineer·Onsite - Coding / Algorithms·Intermediate

IntermediatePrefer not to say
Apr 2026

Summary

Circle SWE interview was a multi-level coding problem centered on building a simplified banking system from scratch. Each level stacked new requirements on top of the last, so if your design from level 1 was too rigid you'd feel it by level 3 or 4.

Questions Asked (4)

Q1

Implement basic banking operations: creating accounts, depositing funds, and transferring money between accounts. All operations take a stringified millisecond timestamp.

Algorithms & Data StructuresSystem Design
Author's notes

The timestamp-as-string detail is easy to gloss over and it matters more later.

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AI HintsAI Generated

Suggested Approach

Start by clarifying requirements and edge cases, then design a simple in-memory data model with accounts and transaction history. Implement operations with proper validation and atomicity, and discuss how to extend to a distributed system if needed.

Pro tip: Mention that timestamps should be used for ordering and auditing, and consider idempotency for transfers to handle retries in a real system.

1. Clarify Requirements

Ask about expected scale, consistency requirements, and whether operations should be idempotent. Confirm the format of timestamps and how they should be used.

2. Design Data Model

Define an Account class with balance and transaction history, and a Bank class to manage accounts. Consider using a map for account lookup and a list for transactions.

3. Implement Core Operations

Write methods for createAccount, deposit, and transfer. Validate inputs, check for sufficient funds, and update balances atomically.

4. Handle Edge Cases

Address scenarios like negative amounts, non-existent accounts, self-transfers, and concurrent operations. Discuss locking or optimistic concurrency if needed.

5. Discuss Scalability and Reliability

Explain how to extend the design to a distributed system with databases, message queues, and idempotent operations. Mention trade-offs between consistency and availability.

Key Points to Mention

  • Use of timestamps for transaction ordering and audit trails
  • Atomicity and consistency in transfers (e.g., using locks or transactions)
  • Idempotency to handle duplicate requests safely
  • Validation of inputs (e.g., positive amounts, existing accounts)
  • Data structures for efficient account lookup and transaction storage
  • Scalability considerations for a real-world banking system

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q2

Extend the system to rank accounts by their total outgoing transaction volume.

Algorithms & Data StructuresData Modeling
Author's notes

Sorting by outgoing totals sounds trivial but you need to decide whether you're maintaining a running sum or recomputing on demand.

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AI HintsAI Generated

Suggested Approach

Clarify the requirements first: define 'outgoing transaction volume' (e.g., sum of amounts, count of transactions) and the time window. Then propose a data model that efficiently supports aggregation, such as a transactions table with an index on sender_id and amount, and describe an algorithm to compute and rank totals, considering scalability and real-time updates.

Pro tip: Mention the trade-offs between pre-aggregation (e.g., materialized views or summary tables) and on-the-fly computation, and suggest a hybrid approach for scalability. Also, discuss how to handle ties in ranking and the need for pagination.

1. Clarify Requirements

Ask questions to define 'outgoing transaction volume' (sum of amounts vs. count), the time period (all-time, monthly, etc.), and whether ranking should be real-time or batch. Confirm the expected scale (number of accounts, transactions per second).

2. Design Data Model

Propose a schema: a transactions table with sender_id, receiver_id, amount, timestamp. Suggest indexes on sender_id and timestamp to speed up aggregation queries. Consider denormalization or summary tables for performance.

3. Choose Algorithm/Query

Outline an algorithm: aggregate total outgoing amount per sender (e.g., using SQL GROUP BY or MapReduce), then sort descending. For large scale, discuss distributed aggregation (e.g., Spark) or streaming (e.g., Kafka + Flink) if real-time is needed.

4. Address Scalability & Updates

Explain how to handle increasing data: use partitioning, pre-aggregation, or incremental updates. Discuss trade-offs between batch (e.g., nightly job) and real-time (e.g., stream processing) and propose a solution based on requirements.

5. Handle Edge Cases & Ranking Details

Cover tie-breaking (e.g., by account ID), pagination for large result sets, and filtering (e.g., exclude internal transfers). Mention the need for efficient top-K queries (e.g., using a heap or database LIMIT).

Key Points to Mention

  • Definition of 'outgoing transaction volume' (sum of amounts vs. count) and time window
  • Data model: transactions table with sender_id, amount, timestamp; indexing strategy
  • Aggregation approach: SQL GROUP BY, MapReduce, or stream processing
  • Scalability considerations: partitioning, pre-aggregation, incremental updates
  • Ranking details: tie-breaking, pagination, top-K efficiency
  • Trade-offs between batch and real-time processing

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q3

Add support for scheduling future payments and querying the status of those scheduled payments.

System DesignTechnical Trade-offs
Author's notes

This is where the timestamp ordering guarantee becomes really useful.

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AI HintsAI Generated

Suggested Approach

Start by clarifying requirements: what payment methods, currencies, and scheduling granularity are needed? Then design a system with a scheduler (e.g., cron or delayed queue) and a persistent store for scheduled payments, ensuring idempotency and exactly-once execution. Finally, expose APIs for creating scheduled payments and querying their status, with proper authentication and rate limiting.

Pro tip: Emphasize idempotency and failure handling: scheduled payments must not double-execute if the scheduler retries, and status queries should reflect eventual consistency. Mention using a distributed lock or unique constraint to prevent duplicates.

1. Clarify Requirements

Ask about supported payment methods, currencies, scheduling granularity (e.g., one-time future date vs recurring), and expected scale. Confirm non-functional needs like latency, consistency, and compliance.

2. High-Level Design

Propose a service that stores scheduled payments in a database and a scheduler (e.g., cron job, delayed queue, or workflow engine) that triggers execution at the scheduled time. Include an API for creating and querying scheduled payments.

3. Data Model & Status Tracking

Define a schema for scheduled payments with fields like id, amount, currency, scheduled_time, status (e.g., PENDING, PROCESSING, COMPLETED, FAILED), and idempotency_key. Explain how status transitions are recorded and queried.

4. Execution & Reliability

Describe how the scheduler picks up due payments, executes them via the payment processor, and updates status. Discuss idempotency, retries with exponential backoff, dead-letter queues, and exactly-once semantics.

5. Querying & Monitoring

Outline the query API (e.g., GET /scheduled-payments/{id} or list by user) and how to handle pagination, filtering, and eventual consistency. Mention monitoring, alerting, and audit logs.

Key Points to Mention

  • Idempotency: use a unique idempotency key to prevent duplicate payments on retries.
  • Scheduler choice: compare cron, delayed queues (e.g., RabbitMQ, SQS), and workflow engines (e.g., Temporal) for scalability and reliability.
  • Status model: define clear states and transitions, and consider eventual consistency for queries.
  • Failure handling: retries, dead-letter queues, and compensating transactions for failed payments.
  • Scalability: sharding, partitioning by time, and using distributed locks for concurrent execution.
  • Security & compliance: authentication, authorization, encryption, and audit trails for financial data.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q4

Support merging two accounts, preserving both balances and the full transaction history of each account.

Data ModelingSystem DesignTechnical Trade-offs
Author's notes

Hardest level by a lot.

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AI HintsAI Generated

Suggested Approach

Start by clarifying the requirements and constraints, such as whether the merge is one-time or ongoing, and the expected scale. Then propose a data model that links both accounts to a new merged account while preserving all original transactions and balances. Finally, discuss trade-offs between different approaches, focusing on consistency, auditability, and performance.

Pro tip: Emphasize the importance of an immutable audit trail and idempotent operations to handle failures gracefully, as financial systems demand high reliability and traceability.

1. Clarify Requirements

Ask questions to understand the scope: Is this a one-time merge or a recurring feature? What is the expected data volume? Are there regulatory requirements for audit trails?

2. Design Data Model

Propose a schema that introduces a new merged account entity, with foreign keys from both original accounts and all their transactions. Ensure balances are preserved by either summing them or keeping separate balance records linked to the merged account.

3. Ensure Data Integrity

Discuss how to maintain consistency during the merge, such as using transactions, idempotent operations, and validation checks to prevent data loss or duplication.

4. Handle Edge Cases

Consider scenarios like merging accounts with different currencies, pending transactions, or accounts with negative balances. Outline how to handle these cases.

5. Evaluate Trade-offs

Compare approaches: e.g., soft merge (linking accounts) vs. hard merge (creating new account and migrating data). Discuss trade-offs in terms of complexity, performance, and auditability.

Key Points to Mention

  • Immutable transaction history: never delete or modify original transactions; instead, link them to the merged account.
  • Balance preservation: sum balances or keep separate balance entries with a clear mapping to the merged account.
  • Idempotency: ensure the merge operation can be safely retried without duplicating data.
  • Audit trail: maintain a record of the merge event itself for compliance and debugging.
  • Scalability: consider how the solution handles large numbers of transactions and accounts.
  • Data consistency: use database transactions or distributed transaction patterns to ensure atomicity.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.