Funds flowing from savings to FDs affects profits - NSB chairman

by Surekha GALAGODA

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Chairman Upali Gunaratne	GM/CEO Sunil Perera Pix by Sumanachandra Ariyawansa

At present there is a wide gap between savings accounts and Fixed Deposits (FDs) as there is a flow of funds from savings accounts to FDs, due to attractive interest rates, said Chairman, National Savings Bank (NSB) Upali Gunaratne.

This scenario has affected the profits but not the income, said Gunaratne at the launch of Ithurum Themasa or Savings Quarter.

NSB, the premier savings bank in the country will launch the first ever Ithurum Themasa or Savings Quarter from October 1 - December 31 to coincide with the World Thrift Day, which falls on October 31.

Money invested within the country circulates and helps to develop the economy.

The rationale for introducing this campaign is to show people how they can improve their quality of life and save more by minimising extravaganzas.

General Manager/CEO Sunil Perera said that under this campaign a person who saves a certain amount of money within a month is entitled to double the amount provided the customer wins the draw which will be held monthly during the three months.

During the Ithurum Themasa Hapan savings account for children, provision to open Sthree accounts at post offices with additional benefits will be launched, said Perera.

NSB in partnership with VISA and MasterCard also launched the NSB Debit card which can be used at 27 mln VISA or MasterCard outlets worldwide instead of cash.

The Hapan savings account launched in 1998 will be re-launched with additional benefits, which includes a higher interest rate and a gift scheme whereby depositors are rewarded according to the amount in the savings account.

The Sthree account which was introduced in 2002 will be launched at post offices named Sthree Thapal Ithurum Ginuma with additional benefits such as a life insurance cover up to Rs. one mln, 1% lesser interest when pawning jewellery to the value of Rs. 10,000 or less and the provision to open an account with Rs. 250 while a person who initially deposits Rs. 500 will be entitled to a free recipe book.

The depositor base of NSB is 15.6 mln while assets have increased from Rs. 224 bln in 2006 to 260 Bln as at present.

The bank recently won the Gold award for the most innovative design in the savings and Loan category at the recently concluded International ARC awards. It is the most prestigious awards scheme in the world to reward the Annual Reports and was held in the USA.