The Commercial Bank of Ceylon has announced the launch of a special Foreign Currency Fixed Deposit (FD) program as a further response to the requirement to attract investment from foreign sources.
The new program, dubbed Forex Plus, offers interest rates of up to 9.5% per annum for terms of up to five years on term deposits in four international currency denominations.
Forex Plus was introduced to encourage investments in currencies that are crucial to the Sri Lankan economy while giving customers the opportunity to save their hard-earned currencies in a competitive and reliable instrument, the bank said.
These fixed deposit accounts can be opened by non-nationals, Sri Lankan nationals with dual nationality and Sri Lankans with permanent resident status or citizenship of another country, who reside in Sri Lanka or abroad, as well as by Sri Lankans employed abroad and by companies incorporated abroad. .
Eligible clients can start their Forex Plus account with a minimum deposit of $5,000 or the equivalent in other designated currencies – Euros, British Pounds or Australian Dollars – for terms of three, four or five years. Interest rates earned will depend on currency and term and fixed deposits under this program will roll over automatically, the bank said.
While US dollar deposits for a period of five years will earn an interest rate of 9.5% per annum, Euro and British Pound will earn 6% per annum and Australian dollar deposits will earn 7% per annum for the same duration. The bank has stated that these rates are applicable at the time of product launch and are subject to change from time to time at the bank’s discretion.
Credits for Forex Plus include remittances through the banking system, in foreign currencies, originating from the account holder’s own overseas account and in favor of the account holder, from an Inward Investment Account (IIA) or an Offshore Banking Unit (OBU) account maintained in the name of the account holder, on proceeds received in the form of inward remittances and foreign currency imported into Sri Lanka by the account holder upon declaration to the Department of customs.