Kampala — WITH only sh1,000, your child will be able to start saving under the Commercial Micro Finance Bank junior savings account. The accounts earn a 5% interest per annum. Frank Balagadde, the Natete branch manager, said during the launch at the Lungujja Playgrounds in Kampala over the weekend that the account will help children learn to save at an early age.

Balagadde said most people do not want to save till they get "a lot of money yet its important to start with little you earn." Jude Mpaata, the market research and development officer, said the bank helps schools to organise co-curriculum activities.

Mpaata explained that junior savings account attracts no transaction charges and that the money can be withdrawn any time.

"There are no ledger fees but free internal standing order from other accounts," he said. The accounts can be opened from the Mukono, Owino, Bwaise, Parliament Avenue, Nateete, and Paidha branches.

The bank also offers other banking services like cash deposits, savings accounts, fixed deposit and education loans.

Jane Busingye, the Nateet branch customer relations officer, said: "You earn interest on what you put away for your child.

"You also enjoy the security of knowing that you do not have to worry about the child's future."

Commercial Micro Finance Bank joins a list of various financial institutions chasing for the same elusive customers.

The increased competition in the banking sector means that banks have to device attractive solutions to have an edge over competitors.

It also means that only innovative institutions may survive the competition.