Courting Milk Money for Long-term Gain: Philippines
This document is a note by USAID and talks about a student savers' club initiated under a savings mobilization program by Cantilan Bank in the Philippines.
The Bank targets students from elementary stage and up, and imparts to them the essential knowledge and skills required to start savings at an early age. The aim is to develop them into long life clients once they have steady jobs.
The main idea of setting up the club was to teach children about the value associated with savings. The club is served by account coordinators with prior approval from the school. The features associated with this scheme include providing students:
- Kid friendly pass book;
- Kiddie savers piggy bank;
- Accounts only withdrawable in times of emergency;
- An interest of 2% to be credited in each account once it reaches USD$10;
- Special incentives at different milestones in terms of savings;
- A life insurance cover for each student at a savings of USD$150.
The document further mentions the cross selling of products by the Bank under such services and the costs associated with such services.