The amount of deposits in the bank accounts owned by school students in the country increased to Tk 880.41 crore as of June 30 from that of Tk 827.76 crore as of March 31 this year.
A Bangladesh Bank official told New Age on Thursday that the deposit amount in the school banking accounts increased in the second quarter (April-June) of this year as banks had recently taken a number of initiatives to facilitate opening the accounts.
He said that as the businesspeople had recently started to take loans from banks to expand their enterprises after a prolonged lull, banks had got some respite from the pressure of excess liquidity.
Against the backdrop, banks have taken initiatives to collect lower-cost fund from the clients, he said.
The BB data showed that the number of schoolchildren bank accounts increased to 11.82 lakh as of June 30 from 10.66 lakh as of March 31 this year.
The number of schoolchildren bank accounts was 10.34 lakh as of December 31, 2015.
A number of banks have given priority to opening savings accounts avoiding the fixed deposit receipts (FDRs), the BB official said.
The nature of school banking accounts is savings category, he said.
But, banks count a lower cost to operate savings accounts like the student accounts, he said.
Bangladesh Bank on November 2, 2010 asked banks to launch the deposit product for students to infuse them with the urge to save up, BB officials said.
Fifty-five of the country’s 56 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 ranging between Tk 100 and Tk 500.
The amount of deposits in the bank accounts opened by school students was 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, 2014.
The BB data showed that the amount of deposits in the schoolchildren accounts maintained with the state-owned banks increased to Tk 94.89 crore as of June 30 from Tk 77.79 crore as of March 31 of this year, that in the private commercial banks to Tk 758.51 crore from Tk 728.16 crore, that in specialised banks to Tk 19.61 crore from Tk 16.69 crore and that of foreign commercial banks to Tk 7.40 crore from Tk 5.12 crore.
Dutch-Bangla Bank, Islami Bank Bangladesh, Eastern Bank, Rupali Bank and United Commercial 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 on other products of savings account, the BB official said.
The maximum interest rate banks are now offering for normal saving 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 that fuelled the deposits then, he said.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Banking