As described by J P Hilton, in his book Britain's First Municipal Savings Bank, 'for many years the Education Committee had conducted savings banks in the elementary schools of the city'. This scheme involved individual schools setting up 'Banks' into which scholars made deposits on a weekly basis. It was the general practice for the scholars to receive back their savings when they left school, but following the establishment of the Municipal Bank the scheme was amended to provide encouragement for the transfer of the savings to individual BMB accounts.

The School Savings Bank scheme was linked to the BMB in 1921, but resulted in very few accounts being transferred - only 1,395 accounts were transferred in the period up to March 31st 1927. Better results were achieved in the 1930s, with 80,786 accounts being transferred in the ten years ended March 31st 1939.

However, the scheme came under threat when the National Savings Committee approached Birmingham Education Committee with a proposal to sell National Savings Stamps in schools. A report to the Bank's Committee of Management, dated January 15th 1940, by the Bank's Finance and General Purposes Sub-Committee summarised the position:

The arrangement at present in force for encouraging thrift amongst elementary school children is for the Education Committee to conduct school savings banks through the teachers and to bank the money received with the Municipal Bank. It is also part of the scheme that upon a scholar's account reaching the sum of £1, the amount is automatically transferred to a personal account of the scholar in the Municipal Bank. This system involves considerable time and much book-keeping. The National Savings Committee have approached the Education Committee for authority to sell National Savings Stamps in the schools. In the opinion of your Sub-Committee, this would "kill" the present scheme, and while they wish to give every assistance for coupon saving and for the sale of Savings Certificates, they feel it is most important that the connection between the scholars and the Municipal Bank should be maintained.

The General Manager has now prepared a scheme for the introduction of a coupon system of saving similar to that in force during the last War. Under this scheme, coupons of suitable denominations would be supplied to the teachers, who would issue coupons to scholars in exchange for cash. The scholar would affix the coupon to a card, which when completed would be taken by the scholar to the most convenient branch of the Municipal Bank, where it would be accepted as a deposit and credited to an account and entered in a passbook or used for the purchase of a National Savings Certificate. The only other work required from teachers would be to pay the money received weekly to the nearest branch of the Municipal Bank and furnish a weekly return showing the stock of coupons held and the sales during the week. The scheme would operate in the schools just the same as if National Savings Stamps were used, and it would preserve, during the War, the close connection which has existed for so long between the Bank Committee and the Education Committee. At the conclusion of the War, the Education Committee would be in a position to determine whether the system should be continued or the School Savings Banks revived.

The Chairman of your Committee and the Chairman of this Sub-Committee, with the General Manager, have been authorised to discuss the scheme with the Chairman and representatives of the Education Committee, and to settle details, including publicity, supply of literature, etc.

Your Sub-Committee recommend that the scheme, as above outlined, be generally approved, and the General Manager authorised to take any necessary steps to put the same into operation.

In addition to the scheme for school savings banks outlined as above, consideration has been given to reviving the coupon scheme of saving for the general public, which was the basis of the Corporation Savings Bank during 1916 - 1919. By such means further support could be given by depositors to the national savings effort. It is not suggested, as was formerly the case, that employers should be asked to make deductions from wages, but to arrange for coupons to be sold at works, factories, etc, and the co-operation of the Trade Unions in this matter would be sought. The coupons would be of suitable denominations up to 5/-.

Having regard to the arrangements made with the Treasury for excess deposits to be invested with the Government, there is no reason why the close contact of the Bank with workers which has existed for 20 years should not be further strengthened and by the means suggested additional support given to the Government in the National Savings effort.

Your Sub-Committee recommend that the scheme, as above outlined, be generally approved and the General Manager instructed to take any necessary steps to carry the same into effect.

The discussions with the Education Committee did not result in the Bank's scheme for scholars to save by means of BMB Coupons being implemented, as a report to the Bank Committee dated February 19th 1940 detailed:

After conferences between representatives of the Education Committee, the National Savings Committee and the Bank, it was decided not to adopt the scheme approved by the Bank Committee, but to further the Savings Campaign amongst school children for the duration of the war by means of the National Scheme, without abandoning the School Savings Banks system. An undertaking was given to have special savings books and cards printed for use in the Birmingham schools which would link up the Municipal Bank to the scheme; also that in literature used, the name of the Municipal Bank would appear in place of Trustee Savings Banks.

While your Sub-Committee regret that the direct contact of the Municipal Bank with the scholars should be thus affected, assurances have been given, both on behalf of the National Savings Committee and the Education Committee that, after the War, the schools savings should be operated through the Municipal Bank.

Despite the failure of any agreement to introduce BMB Coupons as a means of savings in schools, the Bank proceeded with the coupon scheme generally, commencing May 15th 1940. A tender was accepted from Messrs Goodman and Sons for the supply of coupons and coupon cards at a cost of £180. Coupons were sold in factories via agents, and over Bank counters. In the period up to March 31st 1942 sales were:

 - via Agents: £37,397. 2. 6d