The government’s financial inclusion program received another boost Tuesday with the signing of a memorandum of agreement (MOA) that increased the age limit of kiddie account holders from 12 years old to 19 years old.
Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. led the signing of the MOA, which supports the Banking on Your Future (BOYF) program, along with officials of 12 banks.
The bank officials who were present during the MOA signing represented BDO Unibank Inc., Bank of the Philippine Island (BPI), BPI Family Savings Bank, China Bank Savings, Development Bank of the Philippines (DBP), EastWest Bank, Maybank Philippines, Metropolitan Bank & Trust Company (Metrobank), Philippine National Bank (PNB), Philippine Savings Bank (PSBank), Philippine Veterans Bank, Rizal Commercial Banking Corporation (RCBC), RCBC Savings Bank, Security Bank, Sterling Bank of Asia, United Coconut Planters Bank (UCPB), and UCPB Savings Bank.
Under the BOYF, kids aged zero to 19 years old may open savings accounts without a maintaining balance through a Php 100 or less deposit. Once the account holders turn 20 their deposit accounts will revert to a regular savings account.
The program was launched in August 2011 to promote the habit of savings among the 12 million young people aged 12 years and below.
It has so far attracted above a million young savers and these are expected to increase further after the number of participating banks rose to 17 to date.
“We look forward to higher numbers under this expanded kiddie and teen account program,” Tetangco said in his speech during the event.
BSP partnered with the Bank Marketing Association of the Philippines (BMAP) for this program, which has been expanded in line with the implementation of the K-12 program.
Tetangco said the program further supported the government’s bid to ensure inclusive growth by making sure that Filipinos become financially responsible at an early age.
He said signing of the MOA was timely since the K-12 curriculum included financial lessons.
“Aside from targeting a wider market of savers we also wish to help those who have started the habit of saving sustain it until they graduate and start working,” he said.
Tetangco disclosed that the top three banks with the highest number of kiddie savers are BDO, BPI and PNB.
These are followed by RCBC Savings, Security Bank, PSBank, EastWest Bank, Veterans Bank, DBP, and China Bank Savings.