Thrift - Savings Account 1
Show evidence that you practice saving (At least 3 months of constant saving should be proven) by starting a Savings account.
Paste a photocopy of your Passbook details
The importance of saving money cannot be understated. In fact, with so many proven benefits, saving money is one of the best financial habits you can adopt. But, if saving money doesn’t come easy to you, or you just don’t see the point, it’s natural to ask yourself, why is saving money important?
First and foremost, saving money is important because it helps protect you in the event of a financial emergency. Additionally, saving money can help you pay for large purchases, avoid debt, reduce your financial stress, leave a financial legacy, and provide you with a greater sense of financial freedom.
Freedom to Pursue Your Dream Career
Long-Term Security
Emergencies
Stress Reduction
Helping Others
Education
Major Life Events
Saving money is important because it provides security, stress relief, and freedom. And while there are countless reasons to save, you just need to find a reason that resonates with you. Whether it’s helping others, improving your marital finances, leaving a positive financial legacy, or just having a little more fun, you owe it to yourself to prioritize saving.
Having your own savings account makes you more money aware and can encourage you to develop good savings habits as grown-ups.
There are many types of Savings accounts specifically categorized under different categories.
Regular Savings
Children's Savings
Teenage Savings
Senior Citizens Savings
Fixed deposits
Investment Accounts
To open a regular Savings account you must be over 18m and for Children's Savings account, Teenage Savings account there's no minimum age limit but when you turn 18 you will be asked to convert this into a Regular Savings account depending on the bank.
List of Banks and Accounts for Children (Under 18)
Bank of Ceylon - Ran Kekulu SMART Children’s Savings Account
People's Bank - Sisu Udana Children's Savings Account
National Savings Bank (NSB) - Hapan Children's Savings Account
Seylan Bank - Tikiri Children's Savings Account
Commercial Bank - Arunalu Children's Savings Account
Sampath Bank - Supiri / Pubudu Children's Savings Account
General Requirements for Opening an Children's Savings Account
If you are under 18, you cannot open your own Children's account unless you area ccompanied by a Parent or Guardian
You must deposit an amount to your account when creating
Good to Know
An interest is given to you for your amount deposited by the bank and calculated monthly
Interest on a savings account is the amount of money a bank or financial institution pays a depositor for holding their money with the bank
You cannot withdraw any amount from your Children's Savings Account if you are under 18.
At the age of 18, you must convert your Children's Savings Account to a regular Savings Account
Simple Interest Equation (Principal + Interest)
Do not over confuse yourself!. Simply remember that you get an amount from the bank for your contribution towards your bank account and it called Interest.
Where:
A = Total Accrued Amount (principal + interest)
P = Principal Amount
I = Interest Amount
r = Rate of Interest per year in decimal; r = R/100
R = Rate of Interest per year as a percent; R = r * 100
t = Time Period involved in months or years
Let us deposit Rs. 5000.00 to a Children's Bank Account where the Annual Interest rate is 4.00%. Taking note of that Interest is calculated monthy, let us calculate our Account balance at the end of the 2nd month
Principal (P) = 5000
Rate (R) = 4.00% (0.004)
Time (t) = 1 Month (first month) = 1/12 (1 year is 12 months) = 0.0833 years
Equation: A = P(1 + rt)
Solving our equation: A = 5000(1 + (0.04 × 0.0833)) = Rs. 5016.67
Our Interest for the 1st Month (5000 x 0.004 x 0.0833) = Rs. 16.67
Starting balance on the 2nd Month = Rs. 5016.67
The sooner you start to save, the more you'll earn with compound interest.
For example, if you have a savings account, you'll earn interest on your initial savings and on the interest you've already earned. You get interest on your interest.
This is different to simple interest. Simple interest is paid only on the principal at the end of the period. The power of compounding helps you to save more money. The longer you save, the more interest you earn. So start as soon as you can and save regularly. You'll earn a lot more than if you try to catch up later.
Arunalu Children's Savings Account by Commercial Bank of Sri Lanka
Highlights
A higher interest rate will be offered for your child than the rate offered for Regular Savings Accounts.
Account holders will receive special cash prizes if they score 1st, 2nd and 3rd highest aggregate marks in the school at Year 5 Scholarship Examination.
Eligibility
You can open an Arunalu Account on behalf of any child from an infant to 18 years of age.
Features
Cash prizes of Rs 10,000/-, Rs 7,500/-and Rs 5,000/-will be awarded to the Arunalu Account Holders who have gained the 1st, 2nd and the 3rd highest marks in each school at the Year 5 Scholarship Examination.
Minimum balance of Rs. 5,000/- should be maintained in the Arunalu Account prior to the date of the Examination.
Opening an Arunalu Children's Savings Account
Minimum initial deposit – Rs 100/-.
All new Arunalu Accounts opened with an initial deposit of Rs 1,000/- or above will be provided with a Beato till free of charge.
To open an account please collect an Arunalu Children's Savings Account opening form, from your nearest Commercial Bank branch or download it from below, complete the form and hand it in with the original birth certificate of the child together with a photocopy. The original birth certificate will be returned to you. Remember to take your National Identity Card, driving license or valid passport that contains your National Identity Card number. This is important for us to identify you and ensure your account’s security.
Interest rates
| Interest Rate (p.a.) | Annual Percentage Rate | |
|---|---|---|
Interest paid Monthly | 4.00% | 4.07% |
Bank Account Passbook
Tha book you are given upon creating a children's account is called a "Passbook". It is the best practice to
Always keep your passbook somewhere safe
Make sure you ask for a passbook cover if the bank does not give you a cover with the passbook
Not show everyone your passbook
Back of the Front cover includes details about the Savings account and the basic details of you.
The back page of the front cover consists of;
Account Number : 7010200037635
Name of Minor : MAST A K Perera
Date of Birth of Minor: 10-03-2008
ID No Name of Parent/Guardian: 798564568V B L PERERA
Address: No. 123, MARADANA RD, COLOMBO 07
The passbook has a format to record all your transactions and interest details added to your account
In the detail column you see INT - Interest or method of deposit. It defines the purpose of your Credit or Debit. Credit means your account is credited (deposited) an amount. Debit means your accunt is debited (expense). Example: When you deposit money to your bank account, your account gets credited.
Ways to deposit money to your Bank Account
Via going to Bank with your passbook and by filling a deposit slip
Via the CDM (Cash Deposit Machine) machine at an ATM (Automated Teller Machine)
Online Transfer
How to deposit money at the aforementioned places ?
You will need to know your Savings Account number defined in the back of your passbook front cover along with your Name with initials and the Bank name, Branch.
For the above records you will need to format it this way:
7010200037635
A K PERERA
Hatton National Bank
Borella Branch
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