HSBC has shelved its MySavings Youth Account programme.

The announcement comes as crosstown rival Butterfield is on the verge of upgrading its longtime youth savers programme.

In a letter sent to customers, HSBC said: “As part of our ongoing efforts to enhance our services, we will be discontinuing these accounts. Please take this correspondence as your 60-day notice of closure, as all Youth Accounts will be closed on or before December 31, 2024.

A spokesman for the bank told The Royal Gazette the programme was being cancelled due to marginal demand.

At least one parent said the programme was less than ideal, particularly for older teens because it did not allow for a debit card, or online bank account access, in an era when young people do most things on their phones.

The bank rolled out the programme for children ages 7 to 17, in March 2021, as a way to teach youngsters good savings habits.

Customers are now given the option of transferring funds to another account, or they can accept a cheque.

“If you are not able to attend a branch prior to December 31, your account will be closed,” the letter stated. “You and your parent or guardian will then need to visit an HSBC branch, complete a MOT-82 form and provide a government-issued identification to retrieve the account holdings after December 31, 2024.”

The bank said customers in the 7 to 17 age bracket, could still open a joint account with another customer over 18.

“This could be a savings or transactional bank account, which allows for a debit card,” the spokesman said.

The move comes as Butterfield Bank is ramping up its junior savings plan.

Shawnette Griffin, Butterfield’s head of retail banking in Bermuda said: “We have offered our Butterfield Young Saver account for many years. Following a recent product review, we are pleased to advise that we are in the process of enhancing it.”

She said their improved offer would be relaunched in the coming weeks and parents would be able to open accounts for children from birth, with a debit card and Butterfield Online available to tweens and teenagers.

“As part of our longstanding commitment to quality education, Butterfield will also provide incentives, including interest and rewards, to help parents start saving now for their children’s future education needs,” Ms Griffin said.

Ms Griffin said Butterfield would share more details soon.