CB makes public maximum deposit rate directive to finance companies
Wednesday, 2 April 2014 00:21
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The Central Bank yesterday made public its directive to finance companies with regard to the maximum deposit interest rates payable.
The move was in furtherance of the policy announcement originally made at CB’s Road Map for 2014 in January this year. Finance companies have been issued with similar directives in the past but it was the first time it is going public.
In its statement yesterday, the Central Bank informed the public that the maximum interest rates that could be offered for deposits accepted, maintained or renewed by the finance companies licensed under the Finance Business Act No. 42 of 2011 has been revised with effect from 1 April 2014, as follows:
a. The maximum interest rate that could be offered for savings deposits accepted or maintained shall be 7.58% per annum.
b. The maximum interest rates that could be offered for deposits accepted or renewed shall be as follows,
i For maturity period of one year or less – 11.01% per annum.
ii For maturity period of over one year and up to three years – 12.01% per annum.
iii For maturity period of over three years – 13.51% per annum.
In case where a savings or fixed deposit is made by a person who is over fifty-five (55) years of age, a finance company may pay an additional interest rate of 1% above the maximum interest rates as specified in (a) and (b) above.
