Fixed Deposit Bond: An innovative investment product from Lanka ORIX Finance

Wednesday, 9 July 2014 00:22 - - {{hitsCtrl.values.hits}}

Being true to its innovative spirit, Lanka ORIX Finance PLC (LOFC) recently became the first in the non-bank financial services sector to introduce a trailblazing new investment product named ‘Fixed Deposit Bond’ to new and existing clientele. Incidentally, this is the first time that a transferable term investment product has been introduced to the financial services sector in Sri Lanka. Lanka ORIX Finance Fixed Deposit Bond is a secure and long term investment option, which yields higher returns whilst making it an easy and hassle-free financial product, and can be used in any number of transactions or for ownership transfers. As its first step, the company has made this product widely available to the individual and corporate customer segment for a 3-5 year term on fixed interest rates. The most attractive feature of this product is that it is a tradable instrument and can even be gifted. Lanka ORIX Finance Fixed Deposit Bond can be transferred or sold to a third party anytime between the date of deposit and maturity, whilst maintaining the original investment value intact.

The maturity value is stated on the certificate together with the relevant ownership information and time period, thereby, ensuring that the transaction is trustworthy, transparent and secure at all times. The transfer of ownership does not require additional costs or lengthy processes. All it requires is the existing owner’s signature together with instructions and the new owner to register him or herself with the nearest LOFC branch. This makes it an easy and accessible investment which can be used for over a number of different transactions. Highly secure long term investment Commenting, Lanka ORIX Finance Managing Director/CEO Brindley de Zylva said: “The difference between a regular fixed deposit and the Fixed Deposit Bond is that ownership can be transferred without impacting the conditions applicable at the time the deposit was made. In addition, this highly secure and long term investment will grow yielding a higher return at maturity, whilst enabling the customer to fulfil his or her desired transactions anytime he or she wants. The hassle of waiting for the maturity date to arrive to fulfil a desired transaction or seek monthly interest therefore will not be applicable here.” Explaining further, Deputy General Manager Marketing (Savings & Deposits) Roshani Weerasekera said: “The most convenient aspect of the Fixed Deposit Bond is that it acts as an instant transferrable instrument, which means that the transaction itself does not require actual cash being exchanged; this guarantees that your hard earned money is handled and maintained in a safe and transparent manner. Certain mandatory protective measures are also put in place to ensure that even if the certificate is misplaced or stolen, the customer’s investment continues to be intact and safe with us.” Ideal for gift giving The minimum deposit amount for investment begins at Rs. 7,600, Rs. 6,800 and Rs. 6,300 for 36, 48 and 60 months respectively, with provisions to invest higher. Hence, Lanka ORIX Finance Fixed Deposit Bonds are ideal and safe for gift-giving, whether it is for a wedding, a birthday or even as a gift for a minor. This product can also be used for various high value transactions such as settling suppliers by businesses and corporates. By introducing pioneering products and services such as the Fixed Deposit Bond, LOFC has contributed immensely to the growth of the NBFI sector in Sri Lanka. In the recent times, the company launched new product extensions for its Speed Draft short term loan facility and introduced Al-Falaah Ladies Islamic Financial Services via its Islamic Business Unit – Al-Falaah. In addition, as a Registered Finance Company of the Central Bank of Sri Lanka, LOFC is authorised to dispense financial products and services such as leasing, hire purchase, savings and fixed deposits and foreign currency business among others. Since inception in 2001, the company has been deeply active and committed to financially powering the SME and large corporate segments in Sri Lanka, earning the trust of people, stakeholders and the industry alike.