Executive Summary:

With the country knowing identity, School banking services started by Eastern Bank Limited.
With high ambition to enriched students money management skill as well as to develop
economic condition through involvement in banking activities. So here we have tried to focus
upon the school banking services of Bangladesh. This is aimed to have clear knowledge
about school banking in Bangladesh with present status and prospects.
Starting from the meaning of school banking, we have put light on giving a history about
school banking. Further we have moved on to explore the school banking system in
Bangladesh as well as law regarding this also. Our main focus on present status and prospects
of school banking in Bangladesh, considering this we have showed the activities of
commercial banks regarding school banking.
The study also reflects on benefits of school banking as well as the limitation which it faced.
Finally, we have gone through, some suggestion which we have done after analyzing the
whole study.
Chapter 1: Abstract:
Teaching children the all-important skills of money management and saving when they are
young can empower them for success in the future. Thats where School Banking plays such
an essential role. School Banking teaches valuable financial literacy skills that will last well
beyond school life. Generally, School Banking runs all the way through primary and
secondary school.
The banks launched the school banking focusing on the young generation, who are the
country's future citizens, to make them acquainted with banking operation and
simultaneously make them potential future customers or employees of the bank
Savings habit developed through school banking brings financial discipline in the minds of
children which will help them maintain disciplined lives too. Account holder students are
feeling encouraged saving a portion of money they are allowed to spend. Small savings in the
childhood will make their future safe. It will contribute towards economic growth too. A
significant pie of countrys total population can be brought under financial services net with
this. It can build the foundation of financial education for the students. As a result of this,
they can learn the details of bank account maintenance such as how to deposit money into

and withdraw from a bank and will also be able to learn about ICT enabled banking services
like credit card, debit card, mobile banking, internet banking and e-commerce etc.
Chapter 2: Objectives of the report:
The main objectives are:

Understanding the concept of school banking

To know the history of school banking in Bangladesh

To know the Rules and regulations of school banking in Bangladesh

To know about the School banking services provided by commercial banks of

Bangladesh

Chapter 2.1: Methodology:

We have not to follow any complex process to gather our required data, we just collect
information from different articles taken from different websites. After that we analyze data
and summarize them for our study purpose.
Chapter 3: School Banking:
School Banking is a fun, engaging way for young students to achieve hands-on experience on
lifelong money-management skills that encourages good savings habits. School Banking
service is for the school going young children so that they can open bank accounts and start
doing savings right from the school age.
Chapter 3.1: Process of School Banking:
Basically a student saves a portion of his/her daily expenses and deposit to my bank each
month along with whatever money he/she gets from parents and other relatives on birthdays
and festivals . He/she is certain that the savings can be used for future education without
parents' help.
Eligibility

Any children aged from 6 < 18 will be eligible to open an account

Children cannot open the account with anyone other than his/her parents

Minimum Initial deposit amount is only BDT 100/=

Chapter 3.2: History of School Banking:

School banking systems began in America in the late 1870s. J.H.Thiry has been credited
with beginning the school thrift movement in America. He instituted school savings banking
in New York City public schools starting in 1885.

After 1885, school savings banks

proliferated in public schools throughout the country. School Savings Banking was
systematically promoted by the Savings Bank Division of the American Bankers Association
(ABA) beginning in 1913. The ABA approved a curriculum for use in public schools, which
was promoted as the standard system of School Savings Banks throughout most of the
century. The school-banking infrastructure was instrumental for the Treasury Department
during the First World War (1917-1919) in their war savings bond and stamp campaigns
targeting children and youth.
Chapter 4: History of school banking in Bangladesh
School banking is not new in Bangladesh. Some banks, including Muslim Bank, had
introduced a school banking program in the 1960s, but it did not last long. It was some time
before AB Bank (formerly Arab Bangladesh Bank) launched the service in Sunshine
Grammar School in Chittagong in 2003. But, that too did not work.
Bangladesh Bank (BB) on November 2, 2010 asked all scheduled banks to introduce school
banking in a bid to establish financial inclusion across the country and encourage the students
to savings-habit. Out of the 47 scheduled banks operating in the country, 36 have already
launched the product in a large or small scale.
EBL was the first bank that came up with school banking after the central bank issued a
circular in this regard. The bank has introduced 'EBL Junior', a savings account for students,
aiming to include the young population of society under the umbrella of banking. The bank
has so far opened 500 student accounts. It has set a target to net another 500 by next month,
according to Muhammad Musa, head of branches of EBL.
Chapter 4.1: Present scenario of school banking in Bangladesh
According to the report, at the end of December last year, there were 133,000 accounts in 45
banks with a total deposit of Tk 9,605 million. The number of such accounts rose to 224,719
in 46 banks until June this year, showing a deposit of Tk 1.28 billion. Currently, the average
savings in these accounts work out to about Tk 5,716. Students have 4,270 accounts in state-

owned commercial banks. On the other hand, they have opened 4,279 accounts in specialized
banks, 215,597 in private banks and 597 in foreign banks.48 Scheduled banks
The central bank has taken several steps to help children learn about the banking system
through School banking. The first School Banking Conference was organized by the central
bank in Dhaka in 2013. School banking is a step toward financial inclusion and financial
literacy goals taken by Bangladesh Bank, as it helps children learn about the banking system.
The school banking program includes children banking services such as online banking,
ATM, debit and credit cards and makes the 'future generation' more aware about money and
its management.
After this programs launch, savings through the program have grown substantiallyfrom just
over Tk 31 crore ($3.98m) to Tk 114 crore ($14.6m) deposited by only 200,000 students
through March 1st of 2013.
Some steps had been taken from the conference, steps are:

spread the school banking program all over the Bangladesh

target a large part of the 30 million students around the country

Age between 11 to 18 years

encouraging commercial banks to open booths in schools aimed at expanding the

program

Central Bank (BB) tightens school banking rules, banks can issue debit cards free of charge
but they would come with a monthly withdrawal maximum of Tk 2,000. The limit, however,
can be increased to Tk 5,000 upon request from the guardian.

Chapter 4.2: Rules and regulations of school banking in Bangladesh

Rules and regulation regarding School Banking was 1st established in Bangladesh by
Bangladesh Bank under its Green Banking and CSR department on 28th October 2013. Main
components of this ordinance
1. Account open: students aged from 6 to 18 will be applicable to open account.
2. Management of account: The account will be managed by the parents or guardians
of the students.
3. Filling form: Both the students and the guardians should fill the form with personal
information and signed by legal guardians.
4. Account type: This is a savings account. Savings can be transferred to open new
savings scheme.
5. Minimum opening balance: Initial deposit minimum Tk.100
6. Nationality: The students and the guardians/ legal guardians both should be citizen of
Bangladesh.
7. Important documents for opening account: Copy of Birth certificates, academic
certificates, and transcripts must be submitted into the bank.
8. Account holders earning source: The issue related with the Legality of the sources
of deposited amount should be certain.
9. ATM card: Issue of a debit card is possible. Maximum withdrawal amount with this
card will be Tk. 2000. But this limit can be increased to Tk. 5000 with the permission
of the guardians. SMS Transaction Alert will be activated to the number of the
guardians.
10. Service charge/ Fee: There will be an exercise of government fee only in this type of
account.
11. Students fee collection: Educational institutions will collect their fees from the
students bank account. Banks must motivate the institutions to take their students
under banking service.
12. Installation of school banking desk: Concerned banks will set up an individual desk
or counter to support the students banking activities. Deposit and withdrawal facilities
will be provided in this desk with other services. The banks can open up booths on
different days of a month by discussing with the institutions.
13. Deposit of scholarship/ stipends money: students will deposit the amount got from
scholarship or stipends into their account but there will be an agreement between the

bank and the government, semi- government, independent, or non-government

organizations who will give the amount.
14. Education insurance: Students will get the education insurance facility under this
account if their education is hampered by financial crisis for any family or natural
issue.
15. Submission of report and activities disclosure: Banks will quarterly submit report
of increase in their school banking activities to the Green banking and CSR
department of Bangladesh Bank. Reports will be submitted within 15 days after each
quarter. Banks will publish their annual reports update of school banking activities in
their website.
Chapter 4.3: Benefits of school banking

By involving into banking activities from an earlier stage of life, an individual

become saving minded that helps the person to be solvent in later age.

School banking allows account holders to use 24 hours online banking service in
terms of paying tuition on time, buying books and stationary. School banking account
holders can operate their general banking activities without any charge as well as
online banking.

School banking account holder get a waiver of minimum balance requirement than
other account holders.

Majority of the banks issue debit and credit card at a lower cost but some banks issue
it for free in case of school banking.

Interest is calculated on daily balance as a result account holders wealth is enriched.

After a certain period they can use it in their academic purpose such as tuition fees,
stationary etc.

For account maintenance purpose bank doesnt impose any fee and school banking
account holders need not to reserve minimum balance,

Through school banking, students are involving in banking activities, which (students)
is a large portion of the population of Bangladesh. As a result of this involvement
economic condition of Bangladesh becomes stronger.

Chapter 4.4: Limitations of school banking

As Bangladesh is not economically sound country, major portion of

population is living with poverty. They are not able to meet up their childrens
(students) daily demands so maximum students have not the ability to engage
with school banking service.

Implication of school banking is not well established yet in Bangladesh. As it

is a new concept of banking service, it is still in the developing stage.

Banking is not well accepted, particularly among rural housewives (mother) in

Bangladesh. Housewives have long been reluctant to accept banking services
because of their poor standing on financial literacy.

Maximum commercial banks of Bangladesh has already started school

banking service but their effort upon promoting this service is not enough. As
a result public are not aware about this new banking concept.

There are four national commercial banks in Bangladesh. They have huge
number of branches spread all over the country among rural areas but only one
bank ( Sonali bank limited) started this service which is still at developing
stage. For this reason students are not engaged with this service.

Chapter 5: School banking services provided by commercial banks of Bangladesh

Chapter 5.1: Eastern bank limited
EBL Junior Savings Account is designed exclusively for children aged between 6 and 18
years. Get your children into the habit of saving and get them in banking
Features

Higher interest rate 8% per annum

Interest will be calculated on daily balance

Local VISA debit card facilities

Free ATM cash withdrawal facilities at all EBL ATMs

Free internet banking facilities

No minimum balance fee

No account maintenance fee

Minimum Initial deposit amount is only BDT 100/=

Special Benefits

Privilege Card - EBL Junior account holder will get discounts in different food court/
restaurant/Book shop and different outlets across the country

Complementary Insurance Coverage EBL Junior Account holder will be entitled

for the following coverage:
- Loss of Life of the paying parents due to accident BDT5, 000 per month for 60
months for the Tuition Protection of the child.
- Permanent Total Disability (PTD) of the paying parents due to accident BDT5,
000 per month for 60 months for the Tuition Protection of the child. *

Chapter 5.2: Bank Asia

Smart Junior Saver (Mudaraba Savings Account for children / students)
Salient Features
o Initial Deposit: Minimum Tk. 500/o Attractive Income sharing Ratio (Client : Bank :: 70 : 30)
o Free Account maintenance
o Free Visa Debit card (conditions apply)
o Charge free Link Account (MSA) for guardian under Islamic Banking
o Attractive prizes to student having good result
o Financial assistance to the kid to continue education upto SSC or HSC
equivalent level on the basis of merit and financial need (subject to availability
of fund)in case of death of earning guardian.
Chapter 5.3: Mutual Trust Bank
Mutual Trust Bank (MTB) is another bank that has introduced school banking. It launched
two products -- MTB Junior and MTB Graduates -- for students.
MTB Junior

We know how important it is to plan for your child's financial security. MTB has the solution
to help you do that while showing the virtue of saving, in your child. MTB Junior is a savings
account for minors that offer the opportunity to save for today and the future.

Features:

Attractive interest rate

Free debit card

Free internet banking

No account maintenance fee

Minimum account opening balance is Tk 100.

Chapter 5.4: BRAC bank limited

SME-focused BRAC Bank has also launched savings products for students below 18 years.
The bank introduced the 'Future Star Account', which is a savings account for minors that
offers an opportunity to save for one's child's future. The account is available for children
below 18 years of age. However, the legal guardian of the child will operate the account on
behalf of the minor.
'Future Star Account' offers an interest rate of up to 8 percent per annum. The interest is
accrued on a monthly average balance and applied to the guest account yearly. The minimum
account opening balance requirement is Tk 2,000, said a bank official.
Future Star Account
Future Star Account is designed to inculcate savings habit among children below 18 years of
age. Parents can save for their childrens future in this Savings Account. A minor can open
this account jointly with his/her legal guardian. The legal guardian can operate this account
on behalf of the minor. For example: If Mr. "X" wants to open a Future Star Account for his
6 years old daughter "Y", then the account title will be "Y ( Minor)" .
Account Features
o Only 100 Tk opening balance
o No Account Maintenance Fee
o Up to 8% interest on account balance subject to fulfillment of criteria

o Interest is accrued on monthly average balance and applied to customer

account monthly
o Visa/MasterCard Debit Card facility
o Countrywide online banking facility through 155 Branches & 320 + ATMs
o No need to go to school for Tuition Fee payment. Fee will be automatically
collected from account
o Automatic Transaction Alert to Parent's Mobile
o Internet Banking, SMS Banking, e-Statement facility
o The monthly combined limit of withdrawal is BDT 2,000 through ATM and
POS.
o 24 hr. Call Center
Monthly Average Balance

Interest Rate

Below BDT 50,000

4%

BDT 50,000 to less than BDT 1 lac

6%

BDT 1 lac and above

8%

Future Star Privilege Card

With every FSA Account, the minor will get a Privilege Card for free and can use this
Privilege Card for getting attractive discounts at various outlets. Please note that the Privilege
Card is not an ATM Card/Debit Card/Credit Card and cannot be used to make payments at
merchant outlets. For making payment customer needs to use Cash/Debit Card/Credit Card.
Chapter 5.5: Trust bank limited
Trust Bank has also opened school banking and set up an ATM booth at Rajuk Uttara Model
School and College to render services to students. Over 500 accounts have already been
opened there, according to Ruhul Amin, an accountant of the college.
It is very easy to open a student account. Some accounts have even been opened with an
initial deposit of Tk 100, 000, said Amin.
Trust Porua
Trust Porua account is such a savings account which is specially designed for the students of
different educational institution under the umbrella of Haateykhori.

Features:
o Interest bearing deposit account.
o Interest Calculation on daily balance
o Interest Payment : Monthly
o No Hidden Charge
o Smart Plastic Card
Benefits:
o Round the-clock ATM access across the country
o No queues for withdrawal of money
o Easy Loan processing.
o Free Internet Banking, Phone Banking, and SMS banking.
o Cost free TMM (Trust Mobile Money) Registration.
Chapter 5.6: Standard Chartered Bank limited
School Banking Account
Standard Chartered Bank brings School Banking Account for those kids who aspire to be in
the mainstream of life from their very first day at school. Any school going child can open a
School Banking Account with his/her parent and start saving for the future. This account is
meant to help our future generation to grow up with a Savings habit along with being
accustomed with the banking culture. So let the savings grow along with your child.
Special Features
o Account will be opened jointly with parents; it will be treated as a Minor account.
o Interest will be earned on monthly average balance and applied to the account
quarterly.
o No initial deposit requirement.
o No minimum balance requirement.
o No Account Maintenance Fee
o Fast Track services and Value Propositions
Free Additional Features
o 25-leaves Cheque book.
o Online Banking.

o 24-hours Phone Banking.

o Breeze Balance / SMS Banking.
o E-Statements.

Chapter 5.7: IFIC bank Bangladesh limited

School Savings Plan A Plus
Features
o Easy monthly installment based scheme account for school going students
o Flexible tenor: 5 years & 7 years
o Scholarship facility up to Tk. 5000.00 for both SSC & HSC, if the account holder
secures 80%/Grade-A+/CGPA 5.00 marks (without forth subject) in the exam
Chapter 5.8: Prime bank limited
My First Account
My First Account is a Savings Deposit account that can be opened by only enduring
Bangladeshi student having an age 6 years to below 18 years.
The main emphasis is to give students familiarity with banking and build the habit to save.
This account will offer the account holders a unique opportunity to save from an early stage
of life to ensure better education and other financial needs in the future.
"My First Account" will facilitate students' savings attitude toward secure future"
Key Features
o Free ATM card for the student (only debit card).
o Free MICR Cheque book.
o Free Internet Banking (Altitude).
o Free SMS Banking.
o Free of charge standing instruction facility.
o 50% concession on processing & documentation charges on education loan.
o Interest will be calculated similar to the Savings Account.
o Minimum BDT 100/- will be required to open this account.
o No ending balance requirement is applicable.

o No Fees and Charges are applicable for My First Account (except

Government fees as applicable by central bank time to time).

Chapter 5.9: The City Bank limited

City Bank introduces "City Youth School Plan" a savings account tailored specifically for
students below the age of 18. It is to help them develop the habit of saving up and making
them financially responsible.
Availability:
106 of City Bank branches spread across the country.
Interest Rate:
4%
Features:
o Free Passport Endorsement.
o No Account Maintenance Fee & Minimum Balance.
o Interest on daily balance.
Chapter 5.10: One bank limited
From time immemorial, habit of savings is built in nature. Ants save food, Camels save
water, Bees save honey, we save money.
School banking is a special product designed by OBL only for the students with a vision to
inculcate savings habit and familiarize young generations with banking transactions. Fixed
deposit of Tk.5,000/ or its multiple for your chosen tenor.
The product is a savings account in nature named "Student Savings Account (Minor)" with
full of ease.
Features of the product:
Daily Interest: Interest will be calculated on daily balance and credited to the account on half
yearly basis.

No Charges: There will be no charges and no minimum balance requirement to maintain the
account.
ATM Card: Each account holder will receive an ATM Card at free of cost and no fees on
renewal will be required.
Special Kit: Each account holder will be warmly greeted with a special attractive kit
containing a pen, a notebook, a deposit book and ATM card holder.
Reward: Reward comes with every century. Monthly highest depositor will be rewarded
with attractive gift voucher subject to opening of 100 accounts of the school.
Banking at School: Arrangement may be made with the school authority that OBL officials
would be present in the school premises, at a prearranged time, to enable the students to
deposit money to their bank account even at school premises, in addition to the bank
branches.
Chapter 5.11: Sonali bank limited
Features:

Opening Deposit as minimum as Tk.100/-

Interest rate 6%

Free of charge and no minimum deposit amount

Issuing check book without any charge

It will be a joint account

Interest id given half yearly on the basis of daily savings.

Students will get a ball pen and note book inscribed with sonali bank limited
monogram.

Chapter 6: Findings

People of Bangladesh are not well informed of school banking services as it is new
concept.

People from rural area is not interested in this service.

Popularity of school banking is not speeding up as the promotional activities are not
sufficient.

Almost all the commercial banks have introduced school banking activities.

Nationalized commercial banks are showing less interest in school banking as there is
only bank is related with this service presently.

Services such as 24 hour online banking, free debit-credit card service, and no
maintenance fee is available to the account holder.

Banks do not see school banking as a profit making business. But they are hope that
many of these students would become their customers in future.

Chapter 6.1: Recommendation

Promotional activities by commercial banks of Bangladesh of school banking should

be increased.

Remaining nationalized commercial banks must introduce school banking services as

it will bring greater benefits to the country.

Make rural people aware of the benefits of this service.

Conclusion:
It goes without saying that school banking activities helps students to become more selfdependent with sound financial management skill. The concept of school banking activities is
new in Bangladesh. Bangladesh Bank already made a rule that all commercial banks have to
give service in school banking sector. Maximum commercial bank has started this service
already and day by day the amount of account holder increased. If this situation stay and
general public are more aware about this with the help of commercial banks in near future
major portion of students are engaged with school banking activities. As a result, countrys
economic condition also may developed.

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