The Nsoatreman Rural Bank in the Brong Ahafo Region has launched a new product dubbed: “Adesua Ahoboa”, which literally means, “Preparation Towards the Child's Education”.
The product is aimed at helping parents and guardians to save the little money that they might consider as insignificant, and spend it on the education of their children and wards.
A prospective client only needs as little as GH¢1 to open the savings account with the bank to benefit from the product, which has a high yielding interest rate.
Launching the product at Jinjini, a farming community in the Berekum District in the Brong Ahafo Region, Mr Philip Appiah-Mensah, the General Manager of the bank, said the decision of the bank to come out with such a product, was to help minimise the burden and frustration parents had to go through to raise money to pay the admission fees of their wards after they had gained entry into senior high schools (SHC).
He observed that apart from helping parents to save money towards the payment of admission and school fees at the SHS level, the savings could also be used to buy learning materials and pay for the West Africa Senior School Certificate Examination (WASSCE) registration fees.
According to Mr Appiah-Mensah, most parents in the rural areas could not afford the payment of WASSCE registration fees, thereby making their children to drop out of school.
He said some parents and guardians, in their efforts to raise money to pay for the school fees of their wards at the secondary school level, fell victim to the exploitation of money lenders, who charged high interest rates on the money they gave out as loans.
Mr Appiah-Mensah explained that the product was a trust account, which would be held by the parent in the name of the child and when the child attained the age of 18 they could operate the account on their own.
He stated further that unlike the normal current and saving accounts, a prospective client must save for about one and half years before the one could withdraw and also access loans from the “Adesua Ahoboa” account.
He said additionally, children of those who held that accounts also had the opportunity to enjoy the scholarship scheme instituted by the bank.
Mr Appiah-Mensah said the product would help mobilise the excess liquidity outside the banking sector, as well as encourage the youth to cultivate the habit of saving.