No more special interest rates for senior citizens’ FDs
View(s):The senior citizens’ special-fixed-deposit interest scheme has been terminated with immediate effect in the wake of adjusted policy rates and record high rates for Treasury bonds.
On Friday, the Central Bank of Sri Lanka (CBSL) instructed licensed banks and specialised banks that following a Cabinet decision on September 22, it had been decided to terminate the scheme.
Accordingly, operating instructions issued on the scheme have been revoked and banking institutions instructed to refrain from opening and renewing accounts under the scheme with effect from yesterday (1) and inform the account holders of the new decision.
Senior citizens’ FD accounts that fall under the special high-interest rate scheme currently get an interest rate of 15 percent. If they are converted into a normal FD account, they can get an interest rate of 14.5 percent.
Under the senior citizens’ special interest scheme, a person aged 60 years or above could open an FD account with a maximum deposit limit of Rs. 1.5 million. That account will be subjected to the special 15 percent interest rate. Only one such special FD account can be opened and opening multiple accounts coming under the scheme at different banks is prohibited by law.
At the Treasury bond issuance held on Thursday, most of the bonds closed steady. A bond maturing on 15.01.2028 closed at 31.12 percent while another one maturing on 01.07.2032 ended at 29.80 percent.
According to the adjusted policy interest rates fixed by the CBSL on August 17, the Standing Deposit Facility Rate is fixed at 14.5 percent while the Standing Lending Facility Rate is maintained at 15.5 percent.
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