Sunday, December 18, 2011

Saving Habit in minor

When I was below the age majority - 18 years (Pakistan) - my parents used to say Beta don't spend all of your money rather you must save some of Rupees from your pocket money. They used to buy ceramic/clay pot (اردو: غلّہ)  for me, so I can put some of my pocket money in the pot for future use. This was the move of my parents to inculcate saving habits in me.

Today - in the technological era; strong financial system; Banking institutions - the use of those ceramic/clay pots is almost dying perhaps died. Many banks offer account services for the age group of new born upto the age of majority to motivate young generation to save for their future needs. In Pakistan following bank offers following accounts with different benefits and features:


Bank Al Habib, one of the growing bank in the metropolitan city Karachi, with over 350 branches countrywide icluding more than 100 branhces alone in Krachi offers account for young generation with the name of Bank Al Habib Young Savers Account with following features:

Start Early, save Wisely!
  1. It can be opened for youngsters up to the age of 18 years.
  2. One can open an account with Minimum of Rs. 5.
  3. Rate of return is expected to be above return on normal saving accounts, which is usually 5% p.a. Currently indicative rate of return on balance up to Rs. 500,000 is 10% p.a. 
  4. Internet banking facility and ATM/Debit card is available for the parent/guardian of the young saver
  5. Young savers of 16 years and above eligible for ATM/Debit Card if authorized by their parents/guardians. 
  6. Account will be operated by the parents/guardian of young saver.
  7. Bank Officers also visit schools to collect deposits. 
Profit would be subject to Zakat. withholding tax, and other Government levies unless exempted.



The Bank of Punjab was established in 1989, having network of 279 branches countrywide. It is one of the Bank wiht so many scams, scandals, emezzlement, fraud, etc. Recently the Bank of Punjab has moved in the line of offering to the minors with the name of Young Lions. The features are as follow:
  1. The product is available for the youngsters below the age of 18 years. 
  2. The account will be opened with parents/guardian
  3. The rate of return on account is 6% p.a. on all balances, the minimum or maximum balance limit is removed from here.
  4. The profit will be calculated on daily product basis.
  5. Withholding tax at 10% will levied on the profit at source, it means when profit will be paid on account, tax of 10% will be deducted at the same time
  6. Zakat will be deducted as per applicable law. 



United Bank Ltd. (UBL), one of the leading bank of Pakistan, with more than 1220 branches nationwide and some branches is other countries, was founded in 1959 by Agha Hasan Abedi.  It is one of the top five bank in Pakistan deposit wise, profit wise, assets wise, and share wise. 

UBL offers account for youg generation in the name of UBL First Minor Savings Account, popularly pronounced as UBL 1st. UBL promotes this account aggressively in schools all over the country, which inludes giving presentations, gifts, souvenir, etc. UBL 1st has following features: 

Pehli bachat, Pehla Account
  1. UBL 1st account is opened in the name of father/mother or guardian. The name of account is follows the pattern i.e. Arfeen (M) / Aleen (G). 
  2. UBL 1st is available to the age group of 1 day baby up to 18 years of age. 
  3. Two accounts are opened at the opening of minor account; one is principal account in which money is deposited, other will be the account in which profit on principal to be credited. 
  4. On the opening of account a Welcome Pack is sent.
  5. Two Visa ATM/Debit cards are provided;one is specially designed UBL First Pocket-Money (complimentary) for the withdrawal of profit from linked account and other is standard UBL Wallet Visa Debit card to withdraw money from the principal account.
  6. Account opening anniversary, birthday wishes, surprises, and gifts are sent to 1st holder. 
  7. Free E-Statement
  8. Free E-Banking
  9. No minimum balance penalty is levied on this account.
  10. Free accedintal death & disability insurance coverage up to Rs. 2.5 million.
These are the some prominent banks that offer saving accounts for the youngsters below the age of 18 years. In my opinion, this is the great move by banks to cater the needs of minor and to inculcate the saving habit in the minor, which is very crucial for the country like Pakistan. 

The benefit is that on savings minor will be entitled some profit. If minor puts some portion of of his/her pocket money regularly in the account, this will pile up his/her wealth. At the end he/she will be having huge sum of money to use at the age of majority. 


Hurry Up! give your child the account as Gift....