According to Bangladesh Bank (BB) data, deposits with the school banking accounts at commercial banks crossed BDT10 billion at the end of 2016. The central bank’s latest quarterly report on financial inclusion shows that a total of BDT10.2079 billion was deposited with 1,257,370 school banking accounts in 56 scheduled banks up to December 31 last year. The report also suggests that the school banking service is more popular in cities than in rural areas as 783,574 school banking accounts were opened in cities against 473,796 accounts in rural areas.
“Bangladesh Bank launched this special scheme for school students to inspire them to save so that they can also contribute to the national economy. The deposit figure is impressive. Besides, different initiatives are being taken to bring more school students under banking services,” a BB official said. Bangladesh Bank on November 2, 2010 asked banks to launch a deposit product for students to encourage them to open bank accounts by keeping a minimum balance ranging from BDT100 to BDT 500. According to the central bank, the deposit in the bank accounts of school students was BDT7.1449 billion on December 31, 2014 and BDT 8.4419 billion on December 31, 2015. Dutch-Bangla Bank, Islami Bank Bangladesh, Eastern Bank, United Commercial Bank, and Rupali Bank are the five institutions that drew the most deposits from students. Banks usually give one percent more interest on deposits in student accounts than the rate they offer for other savings products.