Finance Money Saving
Invest in Fixed Deposits for higher returns

The main reason for investing in the Fixed Deposit is to get the high interested rates. While you are keeping your money with Savings Account, you will get 4.5% p.a. (It is standard for all the banks) as the interest rate for your money. It is very low compare to the Fixed Deposit (FD). Keeping money in the Savings Bank account is good when you have urgent needs, but if you know that there is no spending for the money, moving it to FD is the best option to get the highest rates. People tend to invest their money in property, share market and on purchasing vehicles commencing from last six months in the previous year as the interest rates offered by the commercial banks were relatively low.

Rupee liquidity in the financial market begun to tight from the beginning of the year 2012 and the financial institutions compelled to offer higher interest rates to attract customer deposits to bridge this liquidity gap. So it’s high time that you should consider investing your hard earn money on Fixed Deposits to get maximum benefits. Now most of the banks offer decent interest rates on Fixed Deposit and you can now invest money in a fixed deposit and draw interest on a monthly basis or alternatively make investments for a period of 1 month, 3 months, 6 months, 1 year, 2 years, 3 years, 4 years or even stretch the investment up to a period of 5 years. I will write about few banks where you can get the high return for your investment.

Comparison of Interest Rates offered to LKR Fixed Deposits

Term Of Deposit

Bank of Ceylon

People’s Bank

National Savings Bank

Commercial

Bank

Hatton National

Bank

Sampath Bank

Seylan

Bank

1 Month 12.00% 11.00% 9.00% 8.00% 9.50%
2 Months 10.00% 11.00% 10.00%
3 Months 12.50% 12.00% Negotiable 11.50% 10.00% 12.00% 11.00%
6 Months 12.00% 11.00% Negotiable 11.50% 10.00% 12.00% 11.00%
9 Months
1Year Maturity 11.50% 11.50% Negotiable 12.00% 12.00% 12.00% 12.00%
1Year Monthly 10.50% 10.50% Negotiable 11.39% 11.35% 10.50% 11.00%
2Year Maturity 12.00% 12.00% 14.0% 11.00% 11.50% 12.50% 12.00%
2Year Monthly 10.50% 10.50% Negotiable 10.48% 10.40% 10.50% 10.50%
3 Year 12.50% 12.50% Negotiable 10.71% 12.00% 12.50% 13.00%
4 Year 12.75% 13.00% 12.95% 10.00% 12.75%
5 Year 13.00% 13.50% Negotiable 13.70% 11.00% 13.25%
Fitch Rating

AA+(lka)

AA(lka)

AAA(lka)

AA(lka)

AA-(lka)

AA-(lka)

A-(lka)

I have given the Fitch Rating each bank got, so that you can assess the risk involved in investing in the particular institution. The three State Banks offer 100% Government guarantee for your money in addition to the credit rating. Fitch Ratings Lanka is fully committed to serving you by providing the highest quality credit ratings. Credit Ratings clearly convey the default risks of various fixed income investment products offered to the public. Therefore, investors would be able to compare the risk and return offered by one investment against risks and returns of all other investment opportunities, and selects the most appropriate investments that meet the individual risk tolerances.

Higher Interest for Senior Citizens

The senior citizens of ours are to be taken care of by offering a good return for their savings as they are the most important segment of our society. So the rate of Interest paid to them is higher than the normal Interest paid on Fixed Deposit.

Term Of Deposit

Bank of Ceylon

People’s Bank

National Savings Bank

Commercial

Bank

Hatton National

Bank

Sampath Bank

Seylan

Bank

1Year Maturity 12.50% 12.50% 12.50% 13.00% 12.50% 12.00%
1Year Monthly 11.50% 11.50% 9.50% 11.84% 12.25% 10.75% 12.00%
2Year Maturity 13.00% 12.50% 12.75% 12.00%
2Year Monthly 11.50% 12.50% 11.00% 11.50%
3Year Maturity 13.00%
3Year Monthly 11.50%
4Year Maturity 14.00%
4Year Monthly 11.50%
5Year Maturity 14.00%
5Year Monthly 11.50%

In this Awurudu Season all the financial institutions offer gifts and surprises bundle with more benefits to your savings. Step in to an Institution of your choice at the auspicious time for “Awurudu Ganudenu” with your loved ones and invest your money for a better tomorrow.

Sandun W

Sandun joined Lanka Help Magazine as a contributor in June, 2011. He has been consistently writing articles to our magazine. Many useful articles of this site are under Sandun's name.

About the author

Sandun joined Lanka Help Magazine as a contributor in June, 2011. He has been consistently writing articles to our magazine. Many useful articles of this site are under Sandun's name.

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6 Comments

  1. mr.ajith lowe

    it is very useful the informations given about the banks. i would like you to ask more about the share market. as i am living in italy, which is the better way to invest my money?. fixed depopsit or share market in sri lanka.please be kind to give me some informations.
    thanks!

  2. Thenuwara

    Are these interest rates are still the same? 

  3. Tharaka

    I just want to know whether these rates are still applicable. I prefer to save with NSB than the other commercial banks.

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