DFCC Vardhana Bank relaunches Vardhana Junior

Newly revamped savings account introduced to provide new relevance and flavour to children’s banking

Thursday, May 22, 2008, Colombo

DFCC Vardhana Bank (DVB), the everyday banking unit of DFCC Bank, today re-launched its endeavour to better serve the needs of consumers – their innovative new product for children – Vardhana Junior. The re-launch of Vardhana Junior took place in Peradeniya at the new DVB Service Point.

This children’s savings account has been specially designed by the bank with a number of unique benefits to provide ease of mind to parents who want to ensure their child’s financial security. Many of the benefits now available are linked specifically to providing access to greater levels of education for children. By re-launching the Vardhana Junior account, DVB aims to upgrade the existing scheme, where account holders will benefit from an added bundle of super benefits such as life insurance cover, tiered interest rates, dole system payments and loans with preferential interest rates.

A parent, grandparent or guardian of the child can open an account for a child at any stage – from their birth to 18 years of age – with a minimum deposit of Rs. 1,000. While the account will be in the name of the child, it can be operated by the child’s parent, grandparent or guardian. One of the many benefits of the account from DVB is that interest rates will be calculated in 4 tiers, which means that the child will receive higher interest rates as incentives for increasing their account balance.

Moreover, at the completion of each level and increase of account balance, the account holder will receive exciting gifts. This is done in order to make the saving scheme more attractive and to encourage and instil the habit of saving in children. The highlight of the initial start-up is a life insurance cover worth Rs. 100,000 for the guardian.  With the completion of each level, the child will receive a number of exciting gifts. At the completion of the child’s 13th birthday, a chance to follow a Rs. 20,000 worth computer course will be awarded to the account holder. On the child’s 16th birthday, a loan worth up to Rs. 100,000 will be granted to purchase a computer, while upon reaching his/her 18th birthday, the child will receive an ATM card and a Credit Card for free if the child maintains a balance of Rs. 100,000 over the last two years. In addition, the child will be accorded exciting loan schemes and a dole system to further his/her tertiary education.  

Speaking at the launch, Mr. L G Perera, Managing Director of DFCC Vardhana Bank, said that the new product will ensure that parents will be able to have peace of mind in the knowledge of their child’s financial security. He added, “Vardhana Junior is an easy and effective means for parents and children to start the saving process. Our interest rates are quite attractive, to encourage the child to increase their savings balance.”

At the Vardhana Junior launch, 20 children were given 20 accounts with the bank funding 50% of the deposit as a special start-up incentive. Receivers of this super incentive were excited over the offer, as one of the parents of a child who received the incentive claimed that the giveaway was a “super start to a super saving scheme for kids”.

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