A significant portion of Bangladesh’s population is school-going children. Along with civic education and academic literacy, financial knowledge is also essential for a student. Financial knowledge includes the literacy and skills of managing money.
Following growing their financial literacy, the banking system has introduced school banking in Bangladesh. The concept of school banking is not new. From the very beginning, school banking aims to teach students valuable financial literacy.
The knowledge they get lasts till their last day of schooling, and the lesson can start from your home. You can explain to them how to manage their money and save it for the future. At one point, you will realize that your child is growing structurally.
However, the school banking system in Bangladesh has had a massive impact on the education system. You will get to know more details about school banking in this article. Keep reading.
The History of School Banking in Bangladesh
For the very first time, the school banking concept was introduced in Germany. The earliest school saving account name was Goshar. In Bangladesh, banking for students started in the 1960s. A few banks, including Muslim Commercial Bank, started the journey, but it does not last long.
Then in 2003, AB bank launched a school banking service at Chittagong Sunshine Grammar School. When it closes again, Bangladesh Bank instructed all the scheduled banks to open school banking activities. In terms of this, Bangladesh Bank started the school banking program in 2013.
What is School Banking?
School banking is a program for students who aim to develop savings, deposits, and withdrawal skills. It is an attempt to improve their money management skills. School banking can give the most important lessons they will ever get in their primary and secondary school.
Almost every commercial bank in Bangladesh encourages schools and colleges about school banking services. They arrange seminars for students and their guardians. Also, the banks open separate booths or banking counter to make the service available in schools.
The Goal of School Banking
As mentioned, school banking is an engaging way for students to learn about money management. It helps to develop their saving habits in primary as well as secondary school. School banking also aims to –
- Improving the financial inclusion of the country
- Ensuring student participation in banking activities through savings
- Generating a saving attitude in students through the inclusion of them in modern banking services and technology
A lot of banks in Bangladesh are trying their best to achieve this goal through their service. Considerable among them are Bank Asia school banking, Sonali Bank student account, DBBL through Nagad, etc.
Tanvir A Mishuk (founder and managing director of Nagad) plays an essential part in financial inclusion in Bangladesh. He is an inspiration for many.
Benefits of School Banking
A school banking program is a crucial fundraising opportunity – from a school’s viewpoint. The commercial bank provides a commission to the school based on the number of saving accounts opened. They also consider the percentage of overall deposits.
Sometimes, the school receives a school grant from the bank. It also includes many benefits for students, like –
- Introducing students to the modern banking system
- Preparing them for future banking customers or employees
- Capital formation through saving money
- Owning massive savings after a certain period
- Boosts the habit to save from an early age
- Getting knowledge about how to manage money which can be helpful for the future
- Learning financial literacy
- Ensuring to bear the cost of tuition fees up to 18 if their parents die
Eligibility and Document Requirements
In the school banking scheme, students below 18 can open an account with their parents’ consent. They have to pay at least 100 takas to open a bank account under this program. To open an account, a student needs to submit the following,
- Birth certificate
- Institutional Identity Card
- Photocopy of testimonial given by the institution
- Receipt for submission of last month’s school fees
The bank will save all this information. However, the parent of the student manages the transactions. No student gets permission to withdraw money before they are 18. But, the student may get some facilities like ATM or Visa card.
Also, the bank specifies the amount to be withdrawn, which is at max 2000 taka. They can withdraw up to 5000 takas at the request of their parents. Also, the bank notifies their parent about the transaction in their given mobile number. There is no additional fee for a school banking account except the government fee.
Wrapping Up!
Ever since your child began to understand, it is time to teach them how to save money and spend it wisely. On your child’s birthday, don’t get them a smart device; instead, get them a school banking account. We hope that you are well-aware of school banking in Bangladesh.