Nine universal and commercial banks and three thrift banks that are affiliated with major local banks signed a memorandum of agreement with the central bank under the Banking on the Children’s Future Through Savings program, which stated that savings accounts of children will be accepted for deposits of P100 or even less.

The banks are Allied Banking Corp., Banco de Oro Unibank, Inc., Bank of the Philippine Islands, ChinaBank Savings, Developmental Bank of the Philippines, East West Banking Corp., Maybank Philippines, Inc., Philippine National Bank, Philippine Veterans Bank, RCBC Savings Bank, and Security Bank Corp.

The 12 banks have a combined network of about 3,000 branches.

“[These banks] speak well of their long-term commitment to develop an inclusive Philippine financial system and a new generation of Filipinos who are regular savers,� BSP Governor Amando M. Tetangco, Jr. said in a speech during the program’s launch.

“Together, [the banks’] Kiddie Account Program makes the opening of savings account affordable and convenient in many parts of the country,� he added.

The savings campaign will run in tandem with the BSP’s joint program with the Department of Education that incorporates lessons on money and management in public elementary schools from in Grades 1 to 4, Mr. Tetangco said.

“Financial education is an advocacy we should all work on,� he said, noting that the national savings rate “remain(s) low.�

Latest BSP data show 36.3 million deposit accounts with combined deposits worth nearly P5 trillion.

“However, the reality is that 23.3 million of these accounts or 64% of the total have balances of only P5,000 and below,� Mr. Tetangco said.

“We have the opportunity through this Kiddie Account Program to improve these numbers. Our public elementary school pupils number at least 12 million or 92% of ‘grade-schoolers’ in the country. There is so much potential here,â€� he added. — A. S. O. Alegado