Smart Steps to Prepare for School Expenses Early with Term Deposits

04 November 2025

Preparing for your child's future is not only about a good education, but also about financial readiness to make it happen. The cost of school and college tuition, which continues to increase every year, is often a challenge for many families.

In order to avoid being overwhelmed in the future, it is important for parents to start preparing education funds early through safe, stable, and easily accessible financial instruments such as time deposits.

The Importance of Preparing for Education Costs Early

Every year, the increase in school and college costs can reach 10-15%, depending on the educational institution and level. If not prepared for from the start, this increase can be a huge burden on the family's finances.

Sound financial planning helps parents break down cost requirements into realistic targets. That way, education funds can be prepared gradually without disrupting other needs.

However, savings interest rates tend to be lower than the increase in school fees, so the value of money can erode over time and become insufficient to keep up with the rate of education inflation.

Time Deposits as a Stable and Planned Financial Solution

Time deposits are savings products with a specific period (e.g., 3, 6, or 12 months) and will generate fixed interest until maturity. Unlike savings accounts, which can be withdrawn at any time, time deposits help customers hold funds so that they are not easily used for other purposes.

These characteristics make deposits suitable for planned financial needs, such as preparing for children's school fees. In addition, deposit interest rates tend to be higher than regular savings accounts. Their value is stable because they are not affected by market fluctuations like high-risk investment instruments.

With a fixed interest rate system and funds guaranteed by the Deposit Insurance Corporation (LPS), deposits provide a sense of security as well as the potential for consistent returns.

Why Are Deposits Right for Children's Education Funds?

Preparing for education costs is not just a matter of saving, but also about choosing the right savings strategy. Term deposits have a number of advantages that help parents keep their financial plans on track:

1.   Fixed and guaranteed interest/return

Each deposit placement provides fixed interest/returns according to the term chosen by the customer. These interest/returns add value to the savings until maturity, helping the funds grow consistently.

2.   Improves financial discipline

Since funds cannot be withdrawn before maturity, parents are encouraged to be more disciplined in setting aside and saving funds. This is effective in ensuring that education funds are not used for other needs.

3.   Low risk and safe

Unlike high-risk investment products, deposits are classified as low-risk instruments because they are not affected by market price changes or movements. Funds are also guaranteed by the LPS within specified limits.

4.   Suitable for medium and long-term plans

Children's education plans usually have a fairly long time horizon. Deposits provide stable fund growth during this period.

With proper planning, deposits help ensure that children receive the best education without having to sacrifice the family's financial balance.

Now, digital banking technology makes financial planning easier. Parents can manage, monitor, and grow their children's education funds directly from their mobile phones through several mobile banking applications.

What are the Positive Effects of Early Childhood Education Planning?

Setting up an education fund through a time deposit brings many benefits to families. Here are some of the positive effects that can be felt immediately:

1. Peace of mind and certainty

   Parents don't need to worry about sudden increases in school fees because the funds have already been clearly allocated.

2. More focused financial planning

   Each deposit becomes part of the family's long-term strategy in preparing for their child's future.

3. More secure education for children

   With funds already prepared, children can focus on their studies without worrying about costs.

4. Financial discipline is established

   The time frame of the deposit makes families wiser in managing their finances and less likely to use education funds for other needs.

5. Potential interest to help with school costs

   Additional interest from deposits can be used as reserve funds for future educational needs, such as uniforms, books, or higher education entrance fees.

With all these benefits, deposits are a rational choice for families who want to prepare for their children's education in a safe and planned manner. Preparing for children's education costs is not something that can be postponed. Every year that passes without planning means losing time to grow funds optimally.

The Ease of Opening a Maybank Deposit/iB Deposit Online via the M2U ID App

Now you can open a Maybank Deposit easily and conveniently through the M2U ID App, Maybank Indonesia's mobile banking application. Maybank Deposits based on Sharia principles are also available.

Through the M2U ID App, customers can open a Maybank Deposit/iB Deposit kanytime and anywhere without time restrictions. The process is easy. Here are the advantages of opening a Maybank Deposit/iB Deposit through the M2U ID App:

1. Competitive interest rates

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2. Flexible tenors

   Customers are free to choose a term of 1, 3, 6, or 12 months according to their children's education fund plans.

3. Available in various currencies

   Maybank Deposits can be opened in Indonesian Rupiah (IDR) or US Dollars (USD).

4. Sharia compliant option (Maybank iB Deposits)

   For customers who wish to conduct transactions in accordance with Sharia principles, Maybank offers the Maybank iB Deposits option with a transparent profit-sharing agreement. Through the M2U ID App, customers can also choose to distribute zakat (2.5%) directly from the profit sharing they receive.

5. Automatic Roll Over (ARO) facility

   When the maturity date arrives, deposits can be automatically renewed in accordance with the terms and conditions, so customers do not need to visit a branch to manually renew their deposits.

6. Safe and guaranteed by LPS

   All customer funds in Maybank Deposit products are guaranteed by LPS in accordance with applicable regulations.

Opening a Maybank Deposit/iB Deposit online on the M2U ID App provides a more modern, efficient, and certainly profitable savings experience.

Deposit Simulation for Children's School Fees

For easier understanding, here is an example of a fund placement simulation at Maybank Deposito/Deposito iB.

For example, someone deposits IDR 2,000,000,000 for 12 months with an effective interest rate/return of 4% per annum (based on the effective interest rate as of August 4, 2025).

The calculation is as follows:

1. IDR 2,000,000,000 x 4% = IDR 80,000,000 per year (before deposit interest tax).

Thus, after one year, the total funds will be around IDR 2,080,000,000. The additional funds from this interest can be used to cover part of the school fees or other educational needs.

This simple simulation shows how deposits can help grow education funds safely and measurably, without worrying about market fluctuations.

Guide to Opening a Maybank Deposit/iB Deposit Online via the M2U ID App

The process of opening a Maybank Deposit/iB Deposit online on the M2U ID App is very practical and only requires a few simple steps:

1. Log in to the M2U ID App.
2. Click the “+” icon.
3. Select “Online Deposit.”
4. Select “Deposit” for regular deposits or “iB Deposit” for Sharia Deposits.
5. Select the account from which the deposit amount will be debited.
6. Click the tenor option and maturity instructions. Then click “Continue.”
7. Select the currency and enter the initial deposit amount. For iB (Sharia) Deposits, customers must check the options related to the contract and profit sharing ratio. Customers can also choose whether or not to distribute zakat. Then click “Process”
8. Make sure all data is correct, then click “Confirm”
9. Enter your Secure2u passcode
10. Maybank Deposit/iB Deposit opening successful

Complete information on how to open a Maybank Deposit/iB Deposit via the M2U ID App/Web can be found here.

Open a Maybank Deposit/iB Deposit account directly through the M2U ID App and enjoy competitive interest rates of up to 4% p.a. (per annum/per year), an easy process without having to visit a branch, and funds guaranteed by the LPS.