With Taka 104.39 crore deposited by 4,92,371 accounts holders in one year, the central Bangladesh Bank (BB) has successfully made the habit of saving popular among the school goers both in the urban and in the countryside.
According to the central bank, total school banking account is stood 1,954,231 and deposited amount was Tk 1546.14 crore in March 31, this year.In March 31, 2018 the school banking accounts number was 14,61,860 and deposited amount was Tk1441.75 crore . After a year in March 31, 2019 the accounts is stood 1,954,231 and deposited amount is over Tk 1546.14 crore. It means number of school banking accounts increased by 33.68 percent and deposit is grown by 7.24 percent.
The private commercial banks are ahead of opening school banking account. The Private banks opened 1356019 school banking accounts that is 69.39 percent of total accounts and received deposit of Tk 1305.23 crore, which is 84.42 percent of total deposit so far, sources said.
Among the private banks the Islami Bank Bangladesh Ltd opened highest 3,70,991 school banking accounts which is 18.53 percent of total accounts.
On the other hand the state owned banks opened 23.72 of the school banking accounts and collected 12.53 percent of the total deposited money.
Among the total accounts, 36.68 percent are opened in rural areas and 63.32 percent are opened in urban areas. 74.36 percent of the deposited money comes from urban area while 25.64 percent comes from rural areas. The ratio boys and girls are 59: 41 school banking.
“Bangladesh Bank launched the program in November 2010 for school students to help them save up for the future, as well as to learn financial literacy at an early age and establish the habit of saving,” a BB official said.According to sources at BB, any student, aged between 11 and 17 years, can open an account with banks supporting the service. The account can also be opened at ease with three copies of photo of the account holder and a parent’s written consent. This is basically a joint account between the student and the guardian.
There are some advantages of opening this account, such as waivers of fees and charges, free internet banking, a waiver of minimum balance requirement, debit card at lower costs, etc, sources added.
Former Bangladesh Bank governor Dr. Atiur Rahman told daily sun that student banking is now popular because of the central bank’s initiatives. As student deposits are increasing by the day, BB should play a more effective role to promote the service across all districts.