M. Shamsul Arefin
Managing Director, NCC Bank

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

M. Shamsul Arefin (MSA): School banking is crucial for both individual development and the broader economic growth of Bangladesh. For individuals, such programmes foster essential financial literacy, teaching students how to save, budget, and manage money. Early association with banking helps develop responsible financial habits, leading to long-term benefits such as efficient financial decision-making, financial independence, and building a relationship history. As students learn to manage their funds, they become more confident in making informed financial decisions—a skill that is vital for achieving self-dependence.

On a national level, student banking contributes to financial inclusion, especially in rural areas where access to banking services remains limited. By integrating students into the formal banking system, these programmes help bridge the gap between the unbanked population and the formal financial sector. Furthermore, by promoting saving habits early on, student banking can increase national savings rates, leading to a more stable economy. Additionally, as Bangladesh moves towards a cashless economy, equipping students with digital banking tools ensures that the future workforce is tech-savvy and capable of navigating the digital financial landscape.

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

MSA: As for the students, they are now much more aware of the national and international economy than ever before. Whenever we hold a school banking campaign or conference, we receive upbeat responses from students and guardians alike. Over the past five years, NCC Bank PLC has experienced an average growth of 18 per cent in opening student accounts, with deposits also showing sound growth. Of the total 25,368 student banking accounts at the bank, 40 per cent belong to rural areas. This reflects the progress in both rural and urban areas concerning students' financial literacy. It is worth mentioning that 52 per cent of the student accounts at NCC Bank PLC are held by female students.

TDS: How does your bank facilitate school banking?

MSA: NCC Bank currently offers three types of products for students, namely:

1.   NCCB Youngster Account

2.  NCCB Youngster Money Plant Scheme

3.  NCCB Youngster Maximus Account

The first product is a general savings account designed for students aged 6 to 18 years. The account requires a nominal deposit balance of only BDT 100 to start with. Moreover, NCC Bank offers an attractive 3.50 per cent interest rate on the NCCB Youngster Account, which is 1.50 per cent higher than that of conventional savings accounts.

The NCCB Youngster Money Plant Scheme is a monthly deposit scheme specially designed for students. The scheme allows deposits ranging from a minimum of BDT 250 to a maximum of BDT 25,000 per month. The tenure options for this scheme are 2, 3, 5, 8, 10, or 12 years. Applicants can choose their preferred monthly deposit amount and maturity period based on their requirements. If needed, applicants can encash the deposit scheme at any time before maturity.

The NCCB Youngster Maximus Account is a fixed deposit (FD) scheme offered exclusively to students. This product offers a higher interest rate than usual and matures in only three years.

Today's youth will be tomorrow's decision-makers. NCC Bank understands the importance of including students in the financial system of the country and therefore ensures financial literacy and student banking with utmost care and attention.