Senior citizens request a 2% increase on Fixed Deposits
View(s):The Central Bank’s imposition of a ceiling on interest rates of finance companies is very good, but has overlooked its effect on the fixed deposits of senior citizens.
In accordance with this imposition, the finance companies and NSB have reduced the interest rates on deposits from a double figure to a single figure, so much so, NSB and finance companies that were paying 14 per cent interest a few years ago have suddeny reduced it to 8.5 per cent and NSB to 7.75 per cent with effect from 17th April 2014, which is like a 50 per cent pay cut to the poor investors.
The investors in finance companies are mostly poor and feeble senior citizens whose only income is the monthly interest on their savings in fixed deposits. With this drastic reduction on their earnings they are in distress not knowing how to meet their bills. Cost of living is skyrocketing every month and medical bills are devastating.
Mr. President, please do authorise NSB to pay the senior citizens an additional 2 per cent interest over the existing rates to enjoy the few years of their existence, God willing.
D.L.Sirimanne,
Kohuwela