Daily Mirror (Sri Lanka)
Cargills Bank revolutionizes minor savings with new FD scheme
Cargills Bank recently announced the launch of its newly crafted fixed-deposit scheme tailored towards minors, with the aim to encourage and inculcate the habit of long-term savings among children, as well as adults.
Giving genuine value to minors compared to any other bank, Cargills Bank states that the concept of this scheme is to assist the financial aspect of the child’s future through assurance of security and an obligation to protect the child’s rights.
The fixed-deposit for minors is placed on a one-year renewable basis, which will renew each year until the minor reaches the age of 18. Until such, it will be assured security for the child as the funds will not be withdrawable until the necessary age is reached.
Any minor, considered to be aged up to 18 years, is eligible for this minor fixed-deposit scheme which offers unrivalled interest rates compared to other banks. Interest rates for the minor fixed-deposit scheme are the same interest rates as applicable for normal fixed-deposits and not reduced or modified.
“We feel this is the best way to encourage savings and give value to minors, because it entails an unmatched interest rate. If an adult is placing a fixed deposit on behalf of a Minor that Fixed Deposit will attract the same interest rate the adult will enjoy if the Fixed Deposit is placed for him.
“There is no differentiation between Minor Fixed Deposit Rates and other Fixed Deposit Rates,” said Buddhika Perera, Assistant General Manager for Retail Business at Cargills Bank.
“At the moment, we are offering up to 10 percent which is the highest rate, per annum. The interest rate will change on annual renewal of the fixed deposit, based on the bank’s renewal policy, but at any given time it is the same interest rate offered to any other customer so we will ensure that the Minor Fixed Deposits are earning the same rate of interest as other Fixed Deposits” he added. While majority of other banks in Sri Lanka attract minors through numerous gifts schemes for children linked to per deposit and available balance, Cargills Bank believes that the minor fixed-deposit scheme will be the best investment for the child’s future.
The process of placing a fixed-deposit for a minor requires just a simple exercise of an adult - parent or guardian - coming to any Cargills Bank branch and opening one. Necessary documentation includes details and identification of the parent/ guardian and the birth certificate of the minor.
Cargills Bank’s minor fixed-deposit scheme is already open to the general public, enabling guardians/parents to open fixed-deposits for their minors.
In another attempt to foster the habit of saving among minors as well as adults, the bank encourages guardians/parents, when purchases are made at any Cargills Food City, to transfer the balance amount directly to the minor’s savings account, through the Cargills Food City Cashier and gradually secure the financial strength for the minor’s future .