Ali Reza Iftekhar
Managing Director and CEO, Eastern Bank 

The Daily Star (TDS): Why is school banking pivotal for individual development and national advancement?

Ali Reza Iftekhar (ARI): Student banking programmes are crucial both for individual development and national progress as they instil financial literacy, promote a culture of saving, and foster responsible financial behaviour. Here's a breakdown of their significance:

Individual Development

a. Financial Literacy

It introduces students to the fundamentals of managing money, including saving, budgeting, and understanding interest. It also familiarises them with banking systems, preparing them for future financial responsibilities.

b. Building Savings Habits

It encourages the habit of saving from an early age, fostering financial independence and long-term planning.

c. Promoting Responsibility

Managing their own bank accounts teaches students to set goals, delay gratification, and handle financial transactions responsibly.

National Perspective

a. Economic Growth

A financially literate population is better equipped to make informed decisions, leading to more efficient use of resources and greater economic productivity.

b. Increasing Savings Rates

Encouraging saving from an early age can lead to higher national savings rates, providing banks with more resources to lend and invest in economic development projects.

c. Reducing Poverty and Inequality

Financial literacy empowers individuals to break the cycle of poverty by enabling them to manage their money better and access financial opportunities.

TDS: What has been the recent response to school banking initiatives in the country?

ARI: The response to student banking initiatives in Bangladesh has been positive, with increasing participation and deposits.

The popularity of these initiatives can be attributed to efforts by banks to enhance financial literacy and provide savings opportunities for students, particularly in rural areas. Features such as low minimum balances and fee waivers make these accounts accessible and appealing.

However, disparities in account penetration persist between urban and rural areas, with urban students contributing a higher share of deposits. Despite these challenges, the growing awareness among guardians and the role of educational institutions in facilitating banking have driven the continued success of these programmes.

TDS: How does your bank facilitate school banking?

ARI: EBL has established itself as a trusted institution for opening student banking accounts. The bank distinguishes itself through a range of unique offerings, as outlined below:

•  Competitive Interest Rates: EBL offers attractive interest rates, ensuring a healthy return on customers' savings.

•  Complimentary Local Debit Card: Customers are entitled to a local debit card provided by EBL at no cost.

•  Free ATM Cash Withdrawals: EBL provides complimentary ATM cash withdrawal services.

•  No Charges for Internet Banking: Internet banking services are offered completely free of charge.

•  Waiver of Account Maintenance Fees: EBL does not impose any account maintenance fees for account holders.

•  Low Minimum Initial Deposit: Opening an account with EBL requires a minimal initial deposit of only BDT 100.

•             Promotional Gifts: Eastern Bank PLC provides promotional gifts such as school bags, geometry boxes, and Polo T-shirts to students to encourage school banking.