Limit raised to Rs. 1.5 Mn @ 15% for senior citizen FDs

15 February 2017 01:03 pm - 16 - {{hitsCtrl.values.hits}}

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The Finance Ministry said today it had increased the upper limit to Rs.1.5 million for senior citizens fixed deposits at the interest rate of 15% per annum from March 1.

The previous limit qualifying for this special interest rate at Commercial and licensed Specialized were fixed deposits up to Rs.1 million.

The ministry said in a statement that on the instruction of Finance Minister Ravi Karunanayake, Treasury Secretary R.H.S. Samaratunga had informed the Central Bank to notify all banks that the previous circular in this regard had been amended.

Full Statement

The present Government, under its 100-day programme, in the Budget - 2015 for the first time introduced a 15% special interest scheme for senior citizens’ fixed deposits up to one million rupees maintained by senior citizens over the age of 60 years. Accordingly, the Government pays the difference between the 15% and the market standard interest rate offered by commercial banks.

Treasury has incurred Rs.13,000 million for this purpose in 2016. As a result of this offer to senior citizens, the number of fixed deposits by senior citizens rose to 450,000 in 2016 from 91,000 in 2015.
The number of fixed deposits maintained by senior citizens is reported to have risen today to 500,000 since the Minister Ravi Karunanayake announced the continuation of the senior citizens deposits scheme which guarantees an interest of 15 percent for deposits with the increase of the upper limit up to Rs 1.5 million.

Director General of Department of Development Finance said that with the increase of the upper limit, Treasury has to spend Rs.18,000 million to pay the 15% interest during this year.

Meanwhile, Finance Minister Ravi Karunanayake said that this Government introduced various facilities to assist senior citizens after 2015 as the ageing population is on the increase in the island.
In addition to the 15% interest, which was introduced in the country for the first time in 2015, the benefit of Agrahara Insurance Scheme available for the public servants was extended up to 70 years for the benefit of those who are retiring from the public sector. In the Budget 2017 the Minister Ravi Karunanayake announced the extension of the insurance cover for the full life time of the retiring public servants from this January

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Comments - 16

ceylon Wednesday, 15 February 2017 02:01 PM

great service for the older genetation.well thought meaningfull help.thank you mr ravi. via DM Android App

Bala Wednesday, 15 February 2017 02:22 PM

Great news. Unfortunately the good deeds seldom get advertised. Evil is good news ... and the good is often interred with their bones. Shakespeare.

lawry Wednesday, 15 February 2017 07:45 PM

That brought a smile on my face! Thank you.

MP Wednesday, 15 February 2017 07:47 PM

This is really good news. Thank you FM.

Kadiya Wednesday, 15 February 2017 08:17 PM

Hooray, great news!!! But will we be pushing our luck if we urge the authorities for a 50% reduction on medicines for senior citizens?

Lal Wednesday, 15 February 2017 08:34 PM

Better late than never I guess

cedricillasinghe Thursday, 16 February 2017 01:27 AM

UNDER RAJAPAKSA REGIME SENIOR WAS 55

Sunil Thursday, 16 February 2017 05:17 AM

Undoubtedly a great deed for the "senior citizens".

Old man Thursday, 16 February 2017 07:19 AM

Not enough. Please give 15% for up to 2.5 million. Cost of living is too high. Need subsidized medicine as well.

Desmond Jeromme Thursday, 16 February 2017 09:20 AM

Good news anyway, but this would have been done long ago.

Kiris Baba Amaray Thursday, 16 February 2017 09:21 AM

Good decision by our Finance Minister.

Bubble Banda Thursday, 16 February 2017 09:22 AM

Rajapakshe did not care for Senior Citizens anyway.

Kadupol Jothywansa Thursday, 16 February 2017 09:24 AM

MR did not care for Senior Citizens, he did the best only for young women.

Bubble Banda Thursday, 16 February 2017 09:27 AM

Hope Mr. Ravi will consider a special allowance at least 5000/= added to Senior Citizens (Pensioners)

Nirmal Thursday, 16 February 2017 09:38 AM

Government should also provide Health Insurance facility to Senior Citizens who were not former Public Servants at a reasonable fee. Why all preferential treatment only for Public Servants? Self Employed and Private Sector workers should also should be treated fairly. Not asking it for free, but for a special rate.

Sue Thursday, 16 February 2017 10:05 AM

It's alwaysGive, give, give. A country that's never satisfied

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Limit raised to Rs. 1.5 Mn @ 15% for senior citizen FDs

Comments - 16

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