School banking deposits cross Tk1,500cr

School banking is gradually becoming popular among students across the country as their deposits with the banks crossed Tk1,500 crore at the end of March, this year.

The scheme teaches kids useful skills about money management effectively. As part of the program, kids can bank at school, with a hands-on banking experience in a simple way, experts say. 

At the end of March, a total of Tk1,546.14 crore was deposited with 19,54,231 school banking accounts at 55 scheduled banks, according to the Bangladesh Bank data.

In the last one year, the deposit amount and accounts have increased 7.24% and 33.68% respectively compared to the same period of the previous year.

According to the data from Bangladesh Bank, Tk1,305.23 crore (84.42% of total school banking deposits till March this year) was deposited with 13,56,019 accounts of private commercial banks. 

On the other hand, Tk193.67 crore was deposited with 463613 accounts in state-owned commercial banks, as mentioned in the central bank's latest quarterly report on financial inclusion. 

 “BB launched for students to help them save for future”

“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 the Dhaka Tribune 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.