Combank launches ‘Loan on FD’ to offer emergency cash to fixed deposit holders

Thursday, 3 August 2017 00:42 - - {{hitsCtrl.values.hits}}

The Commercial Bank of Ceylon has launched a fixed deposit linked facility that provides depositors with credit that can be drawn and utilised in full or in part at their discretion while their deposits earn interest.

This facility has been devised in consideration of customers who may encounter a monetary emergency, but do not wish to uplift their fixed deposits and lose accumulated interest, the bank said.

Customers who open a fixed deposit with Commercial Bank can register for the Loan on FD facility and receive a debit card as well. Under this scheme 90% of the deposit value will be available for them to withdraw, even through ATMs.

The customer can deposit money in the current account in settlement of the funds drawn on the overdraft facility, before his or her fixed deposit matures.

In an event the FD matures before the outstanding is fully settled, the bank will deduct the outstanding and release the balance amount of the FD.

Commercial Bank’s Loan on FD facility is available for fixed deposits with a value of Rs. 100,000 or above and a deposit period of one year, the bank said.

Commenting on this new facility, the bank’s Chief Operating Officer S. Renganathan said, “We are aware that there are many customers who would like to enjoy the higher interest rates paid on fixed deposits, but are concerned about having easily accessible funds for emergencies. This facility is designed for this customer segment.”

Holders of a Loan on FD facility can view all their transactions on the overdraft facility via Commercial Bank’s online banking platform or via e-Passbook.

The only Sri Lankan bank to be ranked among the Top 1000 banks of the world for seven years consecutively, Commercial Bank operates a network of 256 branches and 700 ATMs in Sri Lanka. The bank won 10 major international awards in 2016 and has over the years won multiple awards as Sri Lanka’s Best Bank, Best Trade Bank, Strongest Bank and Most Respected Bank from a number of local and international institutions and publications. It has also been adjudged one of Sri Lanka’s 10 best corporate citizens by the Ceylon Chamber of Commerce for several years.

Commercial Bank’s overseas operations encompass Bangladesh, where it operates 19 outlets, Myanmar, where it has a Representative Office in Yangon, the Maldives, where it opened a fully-fledged Tier I Bank with a stake of 55% in September 2016 and Italy, where the bank launched its own money transfer service in November 2016.

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