The one thousand dollars grant for the new born babies will create a culture of savings for families says Economy Minister, Aiyaz Sayed-Khaiyum.

Sayed-Khaiyum says mothers of new-born babies will create an account under the child’s name and will utilise the first $500 during birth.

He says the second $500 will remain in the account and will be used when the child enters Year 1.

Sayed-Khaiyum confirms that for the first six years no fees will be charged for the new account.