Mirror Magazine

Mirror Magazine

It’s money and so much more
Anuradha Samarajiva and Sachie Fernando explore the openings available for teenagers through savings
You’re young, you’re wild, and you’re free. So what’s on the top of your to-do list? Why, getting a bank account of course! Seeing parents worry over bills and writing out cheques, it would seem that a bank account is the ultimate symbol of responsibility. So why would an independent, fun-loving, and notoriously irresponsible teenager want one?

Kavi (18) a Sampath X-Set account holder says “the best thing is that parents are not involved”. Being responsible for his money is a small price to pay for that freedom.

Sampath Bank’s X-Set account for 12 to14-year-olds being just one of them some others in store are Commercial Bank’s DotCom Account for 15 to 20-year-olds, People’s Bank’s YES Account for young executives over 18 and Hatton National Bank’s (HNB) Hot Shots, a credit card for teenagers.

But what about those uninvolved parents? Mr. R. Jayatunga, Junior Executive for Risk Management at HNB, actually thinks that Hot Shots is “a measure of comfort for parents”. They don’t have to give their teenagers pocket money, or worry that they’re stranded somewhere without cash. The credit card while ensuring that their children develop financial responsibility also allows parents to follow up the progress because they too have access to bills. Most of the banks have parental involvement.

While Commercial Bank insists on the need of a guardian to open a DotCom account for minors, Sampath Bank X-Set account holders need a certificate from a parent to withdraw cash exceeding Rs.5000. Both Sampath and Commercial Banks offer ATM card facility.

People’s Bank caters to the young executive crowd with their YES account. There is an increase of interest rates on accounts exceeding Rs. 25,000. These youngsters are entitled to loans; the amount is decided by the office. Madara (19) a National Savings Bank account holder had a Hapan account at NSB during her school days.“It had a good interest and I got a lot of gifts through it,” says Madara. Mr. Ananda Silva, a senior economist at the Central Bank, says that teen accounts are “helpful for the economy” and they “mobilise people to the banking system”.

While teaching young people to learn about banking, the banks too are benefited with “a good source of income,” says Mr. Silva. According to him they are like fixed deposits as children do not withdraw for a long time.

Nayantara (21) considers herself an adult, and has the final word on the issue. She says, “When you’re a teenager, the last thing you think about is saving your money for the future. Now I realise that I should have got into the habit of saving at a young age.” She then adds, “Most importantly, I hear they reward you with gifts and cash prizes!”

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