Further clarity on confusing 15% interest to senior citizens

Commercial banks have been instructed to accept deposits of up to Rs. 1 million at 15 per cent interest from senior citizens over 60 years with no other limitations on periods, the Sri Lanka Banks Association said in a newspaper advertisement on Wednesday. The notice (in the Daily News) said that “Under the new regulation any Sri Lankan citizen above 60 years of age will be entitled, to open an one year rupee fixed deposit/deposits up to Rs. 1 million in total, in licensed banks on an individual basis”. This rule is applicable effective from January 16, 2015. The latest circular provides more clarity to the confusion and also that any person can open multiple accounts (not one single account) as long as it is within the prescribed Rs. 1 million. However the rule about the facility being restricted only to those who have up to Rs. 1 million in all banks, still applies. Senior depositors who have funds exceeding a total Rs.1 million are not eligible. This is about the third amendment/clarification to the offer of 15 per cent interest rates to senior citizens as announced in the new Government budget. The proposal triggered a lot of confusion (it still does) as customers were given different versions by their banks. – ENDS -