Citizens Financial Group, which operates banks in Connecticut, says it has opened more than 15,000 CollegeSaver accounts since the bank introduced the product last April.
CollegeSaver enables customers to earn a $1,000 bonus plus interest for opening an account by the sixth birthday of their child, grandchild or loved one and saving a minimum of $25 per month until the child is 18.
Customers receive the $1,000 bonus plus all the accrued interest when the child turns 18. It is available to new and existing customers, and insured by the Federal Deposit Insurance Corp.
Citizens unveiled the program last year in response to customer feedback about the difficulties they face saving and paying for college educations.
“Paying college tuition is one of the most challenging goals our customers face,” said Martin Bischoff, the vice chairman of consumer and business banking at Citizens.
Citizens Financial is a $148 billion commercial bank holding company based in Rhode Island. It operates in Connecticut, and 12 other states, under the Citizens Bank brand.
There is no limit on the amount of money that customers can contribute monthly to CollegeSaver. Because the interest rates for the product are tiered, customers can earn more by saving more.
Customers who start saving $100 per month when their child is 6 will accumulate about $15,800, including the $1,000 bonus and interest earned when their child turns 18.
Customers who start saving $100 per month when their child is born will have approximately $23,500.
