Financial Times

Commercial Bank offers new rates on NRFC/RFC accounts
The Commercial Bank of Ceylon is offering floating interest rates for NRFC and RFC account holders who maintain stipulated amounts in their Foreign Currency accounts, the bank said.

This new product would pay foreign currency account holders a rate that would be even higher than overseas deposit rates. Branded "FC Plus", the new scheme makes NRFC and RFC accountholders eligible to receive interest over and above the London Inter Bank Offered Rate (LIBOR) for maintaining an account balance in excess of either 5000 US Dollars, Sterling Pounds, Euros or Australian Dollars. Under 'FC Plus', the interest will be calculated on a daily basis and credited at the end of each month.

The interest rates applicable for each currency will increase depending on the quantum of the balance. Deposits up to 5000 would receive the foreign currency savings rate while deposits between 5,001-25,000 will receive the one month LIBOR rate, deposits of 25,001-50,000 the one month LIBOR rate plus 0.10 per cent, deposits of 50,001-100,000 the one month LIBOR rate plus 0.15 percent, and deposits of over 100,001 the one month LIBOR rate plus 0.25 percent. The interest rates applicable for each month will be communicated on the last working day of the month, the Bank said.

Commercial Bank's Assistant General Manager - Treasury Dula Weeratunga said the Bank has envisaged the importance of attracting more foreign currency investments at a time the country is in need of such investments. " The higher the NRFC or RFC account balance, the greater the return on their foreign currency investment due to these floating interest rates," he said.

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