ComBank raises interest rate on ‘FC Plus’ foreign currency accounts to 4.5% per annum

The Commercial Bank of Ceylon has announced a significant increase in the interest rate offered to Sri Lankan Personal Foreign Currency (PFC) account holders, via the Bank’s ‘FC Plus’ account.

Individuals who open an FC Plus foreign currency account at Commercial Bank will be eligible to receive an interest rate of 4.5% per annum for US Dollar deposits, the bank said in a statement.

Interest will be calculated on the daily balance and credited to customers’ accounts monthly, enabling them to earn interest on interest, resulting in their foreign currency savings growing faster than other foreign currency accounts and earning a higher return than overseas deposit rates.

The bank said the interest rate for FC Plus accounts is linked to the LIBOR (London Inter-Bank Offered Rate) – the internationally-accepted benchmark for foreign currency interest rates – and is structured so that the higher the balance, the higher the rate of interest earned. The rates are reviewed monthly.

Customers can now deposit foreign currency notes too to this account, after validating the source of funds according to the stipulated criteria, and funds can be withdrawn at any time, the bank said.

FC Plus accounts can be opened with a minimum deposit of 5,000 in any of four foreign currencies, the US Dollar, Euro, Sterling Pound or Australian Dollar, and progressively higher rates of interest will be paid on account balances that are within the slabs of up to 50,000; 50,001 - to 100,000; and above 100,001, the bank said.