Empowering Her Wallet: Top Savings Schemes for Women

The concept of women's personal finance in Bangladesh is still relatively new, although it is gaining momentum in recent years with increasing financial inclusion and more women playing an active role in managing their finances. Women in Bangladesh lack financial independence due to inadequate access to the job market; they usually have higher life expectancy and experience more health issues compared to men, making it crucial for them to start saving early for their future.

According to Professor Md. Nehal Ahmed, Director of Dhaka School of Bank Management, BIBM, "Personal finance and savings are particularly important for women in Bangladesh, because having control over money is absolutely pivotal when it comes to women empowerment. Lack of personal finance awareness, financial and digital literacy and social norms are the main reasons why making savings through formal banking is not a common practice among women yet."

However, various commercial banks and NBFIs in Bangladesh offer tailored savings schemes with competitive interest rates and other added benefits, aiding women in their personal finance management.

Eastern Bank

EBL's Women Confidence plan, launched recently, is a flexible savings scheme especially designed for homemakers. Tanzeri Hoque, Head of Priority and Women Banking at EBL, noted its popularity, highlighting the low starting installment of BDT 500. "The account holder also receives two free vouchers for lifestyle and for e-commerce with the opening of the account," she added. The flexible monthly installments from BDT 500 to BDT 100,000 cater to diverse savings goals. For example, a monthly installment of BDT 2,500 over 5 years results in a maturity value of BDT 195,205. The plan also offers a loan facility of up to 90%.

EBL women's savings account also requires a minimum balance of BDT 500 to initiate and offers a 1% monthly interest for a balance of at least BDT 25,000. The user can avail an accidental life insurance coverage of BDT 100,000 and BDT 50,000 for treatment in case of critical illness. Al-Mamun Ansar, Head of Liability Business, Liability & Wealth Management, said, "What makes this plan unique is the VISA Platinum Debit Card, which is a rebranded premium banking card exclusively offered for our female customers under this scheme. They can seamlessly do international transactions for shopping or traveling with this card." Added benefits of this plan include locker fee waiver up to 30% for the first year, maximum ATM withdrawals of BDT 200,000 per day and free internet banking, SMS and phone banking facilities. 

EBL Millionaire Women DPS is suited for women in the mid or upper income brackets seeking a flexible monthly savings plan with a long-term tenure, aiming for a maturity value of one million BDT. Designed to empower women with financial growth opportunities, it allows opening of multiple accounts individually or jointly with an initial deposit of either zero or BDT 100,000 as the first installment and offers seven different tenure options, ranging from a minimum of 2 years to a maximum of 14 years. While irregular payments may affect the guaranteed maturity value, however, the account will not be closed and the holder will receive a calculated maturity amount at the end of the tenure, adjusting to the unique situation of the scheme user.

Dhaka Bank

Dhaka Bank's Aroni savings account can be opened with an initial deposit of just BDT 1,000 and the holders can enjoy an attractive interest rate of up to 2.5%. The savings plan offers a lower yearly service charge and free ATM card. "This scheme can be especially appealing to women since it includes exclusive gift vouchers for discounts at top lifestyle, jewelry, dining partners, and free health consultancy. Women can also benefit from a Visa Platinum Debit Card with a waiver on issuance fees, and enjoy up to four free transactions per month at other banks' ATMs," said HM Mostafizur Rahman, Head of Retail Business of Dhaka Bank. Users also get 5% cashback on their first Debit Card POS transaction and a 10% discount on annual locker rent. Considering the convenience of the female customers, it also offers seamless digital services including free monthly e-statements, internet banking, DBL GO mobile banking app, SMS banking, and a 24/7 contact center.

Another scheme designed for women is the Aroni Deposit Pension Scheme, offered both for women aged 18 or above and minors operated by legal guardians. Any Bangladeshi female can initiate an account with a monthly installment as low as BDT 500 or go up to Tk. 25,000, according to their financial goals. They can choose any tenure from 2 to 10 years and watch their monthly savings grow, with a maximum maturity value of up to BDT 46.55 lakh. The users enjoy the benefit of premature encashment that ensures they always have access to their funds at the immediate earlier maturity value.

Mutual Trust Bank

Mutual Trust Bank's Angona schemes are particularly designed for women to encourage financial independence and savings, providing them with a convenient and beneficial way to manage their finances. Syed Mahbubur Rahman, Managing Director and CEO of MTB commented, "Approximately 90% of MTB's women customers in recent times have chosen the MTB Angona General Account, indicating its high popularity. This scheme is particularly favored by middle-class and upper-middle-class women, including professionals, entrepreneurs, and homemakers." The plan allows account opening with any amount and offers customized cheque book, VISA Platinum Debit Card, 25% discount on locker services and daily interest accrued on day-end balance and paid on monthly basis.

MTB Angona Premium Account is an exclusively designed savings plan for affluent women requiring minimum of BDT 500,000 to open and offering attractive interest, customized cheque book, a VISA Signature Debit Card, 50% discount on locker services and complimentary Pick and Drop, and Meet and Greet services. Angona Fixed Deposit is another plan that general or premium account holders can opt for with an initial deposit of BDT 50,000. This plan provides higher interest rates across multiple tenures, premature encashment facility and access to credit facilities, ensuring comprehensive financial flexibility and growth opportunities. Angona Vitii, a specialized Fixed Deposit for women-led cottage, micro, small & medium enterprises, requires a minimum opening deposit of BDT 50,000 and offers a 0.50% higher interest rate than regular FDRs (Fixed Deposit Receipts), along with SOD (Secured Overdraft) loan facility, auto-renewal and premature encashment facility.

MTB Angona DPS is a monthly savings plan designed to cultivate saving habits among MTB Angona customers, allowing small savings to grow substantially over time. The installment size ranges from any amount in multiples of BDT 500 up to a maximum of BDT 20,000 per month. Saving only BDT 500 per month, the scheme holder can receive a large sum of BDT 36,146 after 5 years and BDT 87,754 after 10 years of maturity.

"MTB plans to launch more savings schemes for housewives, widows, and economically disadvantaged women, emphasizing flexible savings, financial literacy, and small business loans. MTB Angona has already been enabling underprivileged women to join the formal financial system through instant account opening via the MTB e-KYC platform," shared the CEO of MTB.

Mercantile Bank

MBL Nari Sanchay Prokolpo (MNSP) is a dedicated monthly installment-based savings deposit product designed to cater to various financial needs, including education, entrepreneurship, marriage, travel, social support. Md Quamrul Islam Chowdhury, Managing Director of Mercantile Bank remarked, "MNSP is extensively designed for women to promote their financial independence through monthly installment. This product offers flexibility of different tenure and installment amounts ranging from BDT 500 to BDT 50,000, ensuring access to women from diverse backgrounds." The plan offers an attractive 8.50% simple interest rate and 8.84% effective interest rate per annum and allows premature encashment facility after completion of first year.

Aporajita Masik Munafa Prokolpo (AMMP) is another product for women offering a simple interest rate of 10.67% and effective annual interest rate of 11.21% per annum. Ashim Kumar Shaha, DMD of Mercantile Bank mentioned, "This deposit scheme is tailored for self-reliant, industrious women with a fixed amount of unused funds or retirement funds, providing them with the opportunity to earn the highest returns on their savings along with convenient banking services. Both residential and non-residential Bangladeshi females (individually or jointly) are eligible to open this account for 3 or 5 years with a minimum deposit of BDT 50,000 or its multiples." Payment of benefit will start after the first month of account opening and will be automatically transferred each month to the depositor's savings account at any Mercantile Bank branch.

LankaBangla Finance

LankaBangla offers various savings plans for women under their Shikha deposit schemes. Shikha Icche offers a preferential interest rate higher than any regular term deposit, with flexible short and long-term investment options; however, the minimum deposit starts at BDT 50,000. It offers a customizable deposit plan and tenure, and access to SOD (loan against deposit) up to 90% of the principal amount with no processing fees. Khurshed Alam, Head of Retail Financial Services, LankaBangla Finance, said, "Women deposit schemes offer a 0.025% higher interest rate than regular deposit accounts. We also have Shikha Credit Cards with special discounts at parlors, footwear, or clothing outlets for female professionals using the schemes. Many female users are not aware of these benefits, which is why sometimes they do not want to avail themselves of separate credit cards under their names, but rather request a supplementary card linked with their husband's credit card."

Additionally, Shikha Sonchoy is a monthly DPS that requires a minimum deposit of BDT 500 per month. Once the deposits reach BDT 50,000, the client will be eligible for up to 80% loan against deposit facility with no processing fees. Users of this plan enjoy the flexibility of encashment to earn the full value for completed tenures of 2, 3, 4, 5, or 10 years. Additionally, Shikha Obiroto provides options to earn interest on a monthly, quarterly, half-yearly, and annual basis, starting with a minimum deposit of BDT 50,000, and Shikha Projjolon has a shorter tenure than regular schemes, with the benefit of doubling or tripling the investment upon maturity.

Women-centric savings schemes are promoting regular saving habits and providing reliable financial avenues to women, expediting their journey to financial independence, inclusion, and empowerment. However, there is a caveat. In many cases, males deposit money under their wives' or daughters' names to avail themselves of the special interest rates or other benefits. LankaBangla's Head of Retail, Khurshed Alam, draws attention to this challenge, saying, "Upon maturity, many women request their money to be transferred to their husband's accounts. Sometimes we really struggle with this issue since Bangladesh Bank's policy doesn't allow us to do so." Then, how effective are the women's schemes if females are not aware of personal finance?

Professor Md. Nehal Ahmed of BIBM opines that there is a strong correlation between women's personal finance awareness and their financial inclusion. He highlights that banks have crucial roles to play in this regard. "Banks can engage celebrities in financial literacy campaigns and utilize visual storytelling in short films or dramas to effectively promote saving habits and personal finance awareness among women from diverse backgrounds. Besides, more plans should be introduced for women with incentives and personalized financial solutions to drive inclusion across all demographics," he added.