Deposits in school banking accounts Tk 1,021 crore

Staff Correspondent | Published: 22:56, Mar 17,2017

 
 

Total deposits in the bank accounts owned by schoolchildren in the country increased to Tk 1,020.79 crore as of December 31 from that of Tk 982.59 crore as of September 30 last year.
A Bangladesh Bank official told New Age on Thursday that deposits in the school banking accounts increased in recent months as banks had recently taken a number of initiatives to facilitate opening such accounts.
He said that banks were now trying to open lower-cost savings accounts like students accounts that resulted in an increase in the number of schoolchildren accounts and the deposits in the accounts under the school banking programme.
The BB data showed that the number of schoolchildren bank accounts increased to 12.57 lakh as of December 31 from 12.55 lakh as of September 30, 2016. The number was 10.34 lakh as of December 31, 2015.
According to the BB official, banks usually count more interest rates for their fixed deposit schemes than they do for school banking accounts.
Banks are now reluctant to open FDRs as they have been facing huge excess liquidity for long due to the ongoing dull business situation in the country, he said.
Against the backdrop, banks have taken initiatives to collect lower-cost fund from clients, he said.
The nature of school banking accounts is savings, he said.
Banks count lower cost for operating savings accounts like the student accounts, he said.
The BB on November 2, 2010 asked banks to launch the deposit product for students to infuse them with the urge to save up, officials of the central bank said.
Fifty-six of the country’s 57 scheduled banks are now implementing the programme.
Under the programme, students below the age of 18 are allowed to open bank accounts by keeping a minimum balance. The minimum balance ranges between Tk 100 and Tk 500 depending on bank.
The deposits in the bank accounts opened by school students were Tk 880.41 crore as of June 30, Tk 827.76 crore as of March 31 in 2016, Tk 844.19 crore as of December 31, Tk 764.99 crore as of September 30, Tk 687.99 crore as of June 30, Tk 823.04 crore as of March 31 in 2015 and Tk 714.49 crore as of December 31 in 2014.
The BB data showed that the amount of schoolchildren deposits in the state-owned banks increased to Tk 129.24 crore as of December 31 from Tk 116.19 crore as of September 30, 2016, that in the private commercial banks to Tk 861.63 crore from Tk 839.39 crore, that in the foreign commercial banks to Tk 9.51 crore from Tk 8.03 crore, and that in the specialised banks to Tk 20.41 crore from Tk 18.98 crore.
Dutch-Bangla Bank, Islami Bank Bangladesh, Eastern Bank, United Commercial Bank and Rupali Bank were the top five banks that pulled the most deposits from the students.
Banks usually give one per cent more interest on the deposits in the student
accounts than they offer for other savings products, the BB official said.
The maximum interest rate banks are now offering for normal savings deposits ranges from 3.50 to 4.50 per cent, while they give 5 per cent to 5.50 per cent interest to the student account holders.
The BB official said that banks had earlier taken a number of initiatives to boost the school banking programme.
Some of the banks organised school banking conferences at different educational institutions to generate an attitude of saving among the students, he added. 

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