The Commercial Bank of Ceylon has launched a fixed deposit linked facility that provides depositors with credit that can be drawn and utilised in full or in part at their discretion while their deposits earn interest.
This facility has been devisedin consideration of customers who may encounter a monetary emergency, but do not wish to uplift their fixed deposits and lose accumulated interest, the Bank said.
Customers who open a fixed deposit with Commercial Bank can register for the Loan onFD facility andreceive a debit card as well.Under this scheme 90 percent of the deposit value will be available for them to withdraw, even through ATMs.
The customer can deposit money in the current account in settlement of the funds drawn on the overdraft facility, before his or her fixed deposit matures.
In an event the FD matures before the outstanding is fully settled, the bank will deduct the outstanding and release the balance amount of the FD.
Commercial Bank’s Loan on FD facility is available for fixed deposits with a value of Rs. 100,000 or above and a deposit period of one year, the bank said. Commenting on this new facility, the bank’s Chief Operating Officer S. Renganathan said. “We are aware that there are many customers who would like to enjoy the higher interest rates paid on fixed deposits, but are concerned about having easily accessible funds for emergencies. This facility is designed for this customer segment.”
Holders of a Loan on FD facility can view all their transactions on the overdraft facility via Commercial Bank’s Online Baking platform or via e-Passbook.