Time passes quickly, look on children growing up in no time. You can guaranty your child's educational future with Guaranteed Education Accounts with Bank of Education. Guaranteed Education Account is also supported with Donation Pool Account. Money at Donation pool distributed to Guaranteed Education Accounts with equally distribution method.
From the birth of your child or anytime, you can be able to open Guaranteed Education Account and start saving money for your child’s future to afford college tuitions in the future etc.
When you open Guaranteed Education account, you can select your minimum monthly payment and start saving money get your portion from the Donation Pool at the end of every month.You are also allowed to deposit money to the account anytime.
How does donation pool works? Every end of the month saved money on donation pool will be divided into a number of Guaranteed Education Accounts so the result will be deposited all guaranteed education accounts and all accounts will be deposited maximum 50 dollars from the donation pool. Donation pool closes with balance 0.00 dollars or with money remaining because of 50 dollars maximum rule for each account every end of the month. You can only benefit from donation pool if you are spending money for your educational purpose.
Donation pool will also help students who can’t afford college fee and students who bring to the bank a “can’t afford proof”. Can’t afford proof will be based on making income test to the family.
Guaranteed Education Account should be open minimum 10 years in order to benefit from donation pool. If the account holder wants the money back and close the account 9th year, all money you saved from the donation pool will return back to the pool. You can only have your base money back.Resources to support pool can be government, individuals or etc.
For example, If family deposits every month 100 dollars to the account gets 50 dollars donate at maximum for 15 years savings, the total saved money will be about 27000 dollars after 15 years.
Bank of Education will also offer Guaranteed Future Insurance which will help to assure child’s future in case of family loss. This will have also month payment options by selecting how many years you want to assure. This depends on family decision.
Bank of Education is not a real bank, It is just an idea on Idea phase for OpenIDEO challenge. I try to summarize the how Bank of Education will work. This idea is open to being improved. Given numbers may change.