Daily Mirror (Sri Lanka)

Cargills Bank rev­o­lu­tion­izes mi­nor sav­ings with new FD scheme

- Finance · Personal Finance · Banking · Business · Sri Lanka

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 .

 ??  ?? Bud­dhika Per­era
Cargills Bank Head Of­fice
Bud­dhika Per­era Cargills Bank Head Of­fice

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