Clarity needed on 15% interest for senior citizens
View(s):Clarity is lacking on the new 15 per cent interest rate for senior citizens interest rate on Rs.1 million deposits in commercial banks with many banks saying they are awaiting direction from the Central Bank (CB).
This was proposed at Thursday’s mini budget following the last regime’s proposal to grant 12 per cent annual interest rate for Rs 2.5 million deposits of citizens over 60 years of age, which was implemented. Those who opened deposits in early January won’t be requested to change to the new scheme.
With the new proposal, all such deposit holders holding rupee fixed deposits totaling up to Rs. 1million in licensed banks, will be granted 15 per cent, but its effective date is yet to be communicated to all banks, according to a CB official. Till clarity on the scheme is sought, new deposits will not be entertained by banks at the new rate.
According to 2013 data, Sri Lanka has a senior citizen population amounting to18 per cent of the total population with a steady rise seen over the years.