Finance
How to get higher returns for your “ BONUS” by investing in Fixed Deposits
We are in the dawn of a New Year and most of the people are getting ready to welcome the New Year while the others are busy with Christmas celebrations. December is a festive month no matter whether you are a Catholic or not, and it’s just not the New Year or Christmas that the month of December so special to us. It is the month we are getting our “BONUS”, the month we feel more generous on spending our hard earn money. Even the rest of our family members especially the kids are also waiting for this month to come in order to make their requests. It is true that the money received is not sufficient to fulfill all those requirements, but we must save a considerable portion of the money received for our future and to be taken in case of an emergency. We at Lanka Help Magazine published many articles on investment opportunities and this is an update of “Invest in Fixed Deposits for Higher Returns”.

Seylan Bank – Flexi Fixed Deposit

Unlike other traditional Fixed Deposits, Seylan Flexi FD gives you the freedom to decide the number of days for your own deposit. It's so flexible and easy to handle. As the minimum deposit period is 31 days and maximum is 365 days you are free to deposit for short term investments. The minimum deposit amount is Rs. 100,000In Interest Rates starts from 8.30% (31 – 60 Days) to 10.5%(331 Days to 365 Days). Instant Loan or Free Instant Credit Card with a lower special interest rate are entitle for investors. After the maturity of the Flexi FD, deposit will be rolled over for a period of 30 days, 3 months or 6 months as per your requirement. As Seylan Bank has advertised “Let it be a moment of cash emergency, you want to start a business, you have sold your car, house or land and you are worried that money will vanish before you buy a new car, house or land or dreaming of a higher interest for your bonus money, then invest in Seylan Flexi FD” Let me share my personnel experience; when I sold my inherited house in view of building a new house in a different location. As soon as I got the sales proceeds I divided it in to several potions and invest in fixed deposits with different maturity periods and chosen the option to receive monthly interest. It came in handy when I have to pay for the house rental (I have shifted to a house on rent till the construction of new house finish) monthly. Then I spent another month searching for a land and when I found it I withdrew a FD and settled it. Then when the construction begun I came to an agreement with the head of construction to settle the bills end of each months. For all those months I received monthly interest that I have used for my personnel monthly expenses and for other sundry expenses on construction.

Rates offered to Fixed Deposits by State Banks and other Commercial Banks

Here I will list down the highest interest paying State Bank and the private Commercial Bank. If you concern more on secure of your money, then you will have to choose one of the three State Banks. Here again you will get 100% Government guarantee for your money and interest earned for the deposits in National Savings Bank.
  1. One Month FD  - Seylan Bank offers 8.5% and all the other Banks offer 8%
  2. 3 Months FD      - State Banks offer 9.0%
  3. 6 Months FD      - State Banks offer 9.25%
  4. 12 Months (Maturity)    - State Banks offer 9.5% -  Seylan & Sampath Bank – 10.5%
  5. 12 Months (Monthly)     - State Banks offer 8.75% -  Seylan Bank – 10%
  6. 24 Months (Maturity)    - State Banks offer 10.0% -  Seylan Bank – 11.5%
  7. 36 Months (Maturity)    - State Banks offer 10.5% -  Seylan Bank – 12%
  8. 60 Months (Maturity)    - State Banks offer 11.75% -  Sampath Bank – 15.5%

Rates offered to Fixed Deposits by top rated Finance Companies

Here I have chosen three of the Finance companies who have the highest Credit Rating.  

Central Finance

Fitch Rating A+lka

LB Finance

RAM Rating A-/P2

Lanka Orix Finance

ICRA Rating SLA-

1 month

9.5%

11%

11.5%

3 months

10.5%

12.5%

12.5%

6 months

11%

13%

13%

12 months (maturity)

12.25%

13.5%

13.25%

12 months (monthly)

11.25%

12.5%

12.25%

24 months (maturity)

13.75%

14%

13.75%

36 months (maturity)

14%

14.25%

14%

60 months (maturity)

14.75%

14.75%

14.5%

Summary

National Savings Bank has the highest published interest rates in the State Banks category. Sampath Bank offers the highest interest rate for 60 months both under Banks and Finance companies categories i.e. 15.5% which is very attractive. Seylan Bank has the highest rates for the fixed deposits with maturity periods of 12months and above. In the Finance Companies, it is LB Finance which offers the lucrative interest rates. All the interest rates given above are current published rates as at 2nd December 2013. We at Lanka Help Magazine has no intention of promoting any of the institutions mentioned above and this article is solely meant to educate our readers.

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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1 Comment

  1. Dumidu

    Thanks for sharing …

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