Falling interest rates, dilemma of senior citizens
Something terrible seems to be happening to our country which the government appears to be hiding from the people. Are our country’s finances in the doldrums? The Central Bank goes public with deposit rate caps on finance companies. Very reliable finance companies that were operating for almost 40 years and paying reasonable interest rates to their customers are now almost in confusion about future operations.
The National Savings Bank that paid 16 per cent a few years ago was forced to bring down their interest rates to 14.50 per cent in 2012. Then in 2013 they reduced the interest rate to 11 per cent and with the new notice by the Central Bank, it has brought down the interest rates to 8.25 per cent from 1st April 2014 monthly for one year, whether you are a senior citizen or not.
The poor pensioners and the non-pensioners who have invested their monies in banks and finance companies will now get only a fraction of what they earned on their savings and will wallow in debt trying to make ends meet.
On April 2nd 2014, the Central Bank notice caps the deposit rate: ‘for 1 year or less 11.01%, 1-3 years 12.01% and over 3 years 13.51%.’ Senior citizens invest their savings to collect a monthly interest to live on. Most of the seniors both male and female are ailing and are in the ‘Departure Lounge’ not knowing whether they would live for another year. It is absurd to expect such a person to invest for three years and wait to collect 13.5 per cent, and if he does, is he expected to live on “Hulang” (air) for three years?
Please Mr. President, do something for the seniors to lighten their suffering. “To every man on earth, death cometh soon or late.”
A very Senior Citizen,
Kohuwela