FINANCIAL Education is vital in developing financially literate citizenry, empowering them to make to make wise financial decisions, take advantage of economic opportunities, and achieve financial health. A savings account can serve as an emergency fund, providing financial security in case of unexpected expenses or financial setbacks. Having a savings account can promote financial independence and responsibility.
A kiddies savings account is a type of savings account designed for learners, typically minors, to help them save money and learn about financial management. These accounts are usually opened by parents or guardians on behalf of their children. Educational tools: Some accounts may come with educational resources or tools to teach children about saving and financial literacy.
Presidential Decree No. 734 (PD 734), June 25, 1975, grants special capacity to minors (under certain conditions) to make savings/time deposits. Specifically, minors “who are at least seven years of age, are able to read and write, have sufficient discretion , are, vested, in their own right and in their own names, to make savings deposits and withdraw the same, without the assistance of their parents or guardians.” This means banks are legally allowed (and expected) to open deposit accounts in the names of certain minors.
Thrift Banks Act (Republic Act No. 7906), Under Section 22 of RA 7906, “Minors in their own rights and in their own names may make deposits and withdraw the same, and may receive dividends and interest.” This law applies to “thrift banks” (savings and mortgage banks, stock savings & loan associations, private development banks, etc.), so for those banks, the statutory basis is very clear.
General Banking Law / Deposit Insurance Framework, of the General Banking Law of 2000 (RA 8791) underlies modern banking regulation; but the PD 734 right of minors is not overridden by it. The Bangko Sentral (BSP) supervises banks under this law. Also, deposits (including those by minors) may be insured by the Philippine Deposit Insurance Corporation (PDIC), subject to the usual deposit-insurance rules.
BSP Kiddie Account Program / Code of Conduct, esides legal mandates, there is also a policy push from the Bangko Sentral ng Pilipinas (BSP). The “Kiddie Account Program” was launched to promote saving among schoolchildren. According to the program, banks participating must follow a Code of Conduct drafted by the BSP. Under this program, banks agree to standardized terms (like low minimum initial deposit) to make these accounts accessible to children. National Teachers and Employees Cooperative Bank (NTECB), located at Mabolo, Cebu City started its operationalization for the Kiddies Savers Account with a minimum/initial deposit of 50.00 and be issued with a passbook by NTECB.
