Senior citizens’ preferential interest rates unchanged, says Fin. Min.

The Finance Ministry yesterday said preferential interest rates given to senior citizens’ accounts had not been changed and requested the public not to be misled by inaccurate reports. 

The Finance, Economy and Policy Development Ministry releasing a statement yesterday said that reports of a change to interest rates on fixed deposit accounts held by seniors, which were initially introduced in 2014 and then continued by the former Government as well, remained unchanged. 

“From 1 January the Government has removed Withholding Tax (WHT) on interest payments and earnings up to Rs. 3,000,000 per year or Rs. 250,000 a month of interest payment earnings have also been released from taxes. Senior citizens have been requested not to be alarmed by reports of interest rates being changed,” the statement said. 

The Finance Ministry also said preferential interest rates were introduced in recognition of the services rendered by senior citizens and to provide them with a stable income in their retirement years. The Government has taken multiple steps over the last few weeks to bring down interest rates to provide relief to COVID-19 related businesses.