Parents can ensure their hard-earned savings for their children will grow into millions when the children turn 18 years of age, under the new ‘Isuru’ minors’ savings plan unveiled by Commercial Bank of Ceylon PLC, Sri Lanka’s largest private bank.
New Isuru accounts, which are opened under this sixth permutation of the bank’s two decades old Isuru structured savings plan for children now pay up to Rs 8.8 million when the beneficiary turns 18, the bank said. A pioneer minors’ savings plan in the market, Commercial Bank’s Isuru offers two savings options – a monthly deposit scheme or a lump sum deposit scheme as per the choice of the parents or anyone who wishes to open an Isuru account for a child. The accumulated balance or the guaranteed amount when the Isuru lump sum deposit scheme matures (when the child turns 18) depends on the age of the child when the account is opened, while the guaranteed amount in the Isuru monthly savings scheme also depends on the agreed date of the monthly deposit, the agreed amount of the monthly deposit and the deposit period, in addition to the age of the child at the time of opening the account. Under the monthly deposit option, Isuru accounts may be opened for children who are between one day and 10 years old and parents may choose to save between Rs.500 and Rs.20,000 in multiples of Rs.500 a month, for five or 10 years. A 10-year savings plan opened at birth of the child with a monthly commitment of Rs.20,000 till age 10 will guarantee an account balance of Rs.8.8 million when the child turns 18.
The most compelling feature of the Commercial Bank Isuru minors’ savings plan is that the bank undertakes to pay the final guaranteed amount when the child turns 18, even in the event of the monthly deposits being interrupted due to the untimely demise of the depositor.
Parents who opt for the lump sum savings option may deposit between Rs.5,000 and Rs.1 million at any time between the day the child is born and the child’s 10th birthday. A deposit of Rs.1 million at birth will guarantee the child a balance of more than Rs.5.7 million at the age of 18.
“Isuru is a flexible plan that enables parents to save whatever they can afford, for the future of their children,” Commercial Bank Deputy General Manager Marketing Hasrath Munasinghe said.
“Since it is a long-term savings plan, the financial strength, stability and reputation of the bank are key considerations for parents. In these aspects Commercial Bank is already acknowledged as a leader in Sri Lanka.”
Besides the Isuru minors’ savings plan, Commercial Bank also has the popular children’s savings account branded ‘Arunalu’, which rewards account holders for their