NTB’s new money market linked FDs

Nations Trust Bank said it is offering investors a unique opportunity to take advantage of the highly volatile money market interest rates that have prevailed recently.

An attractive investment opportunity has been structured in the form of a Fixed Deposit with a floating rate which is linked to the daily overnight Sri Lanka Inter-Bank Offered Rate (SLIBOR). SLIBOR has recorded significant increases averaging 20.65% in March and trending even higher in April, the bank said in a press release.

“This is the most attractive product for investors in the market right now as we guarantee investors a minimum rate on their investment, which is commensurate with the current Fixed Deposit rates. The investor is thus protected from any downward trend in money market rates,” said Renuka Fernando, DGM Retail.

The minimum value per deposit would be Rs 500,000 while the interest rate would be linked to overnight SLIBOR minus 1.5% per annum. Investors could earn upto 40% p.a. for payments at maturity and 30% p.a. for monthly interest payouts, subject to fluctuations of the money-market. The Fixed Deposits are also protected by minimum floor rates at 14.5% per annum for 12 month deposits 14.0% for 6 month deposits and 13.5% for 12 and 6 months deposits where interest is paid monthly.