HNB’s new 3-year foreign currency deposit product

Hatton National Bank, the Sri Lanka’s premier private commercial bank which was awarded ‘the Bank of the year 2006’ by the prestigious publication - The Banker -, is launching a three year foreign currency fixed deposit product denominated in US dollars for a limited period up to 31st March 2007.

Under this scheme, deposits are accepted in multiples of US$ 50,000. For the minimum deposit amount of US$50,000 the scheme offers the London Inter Bank Offered Rate (LIBOR) the rate at which the banks lend to other banks, a statement from the bank said. The interest rate offered also increases depending on the amount of the deposit. Deposit amounts over US$100,000 will attract an interest rate of 0.25% over the LIBOR rate, deposits of over US$ 500,000 would be paid an interest rate of 0.50% over the LIBOR rate and the deposits over US$ 1,000,000 will attract an interest rate of 0.75% over the LIBOR rate. Based on the current LIBOR rate of 5.36% the interest on deposits would increase upto 6.11%.

The bank said it will also ensure that the benefits of any future interest rate increases are passed on to the customer by offering floating interest rates. The interest rates will be adjusted on January1 and July 1 of each year based on the six months LIBOR rate applicable, two working days prior to the commencement of the interest rate period.

“The budget proposal for 2006 includes giving duel citizenship to expatriate Sri Lankans who has citizenship in other countries on condition they deposit US$ 50,000 in a fresh account in Sri Lanka for a period of three years. This product caters to this requirement as well,” the statement said.