PAB launches 'Blue Chip' Money Market Savings product
Sri Lanka's fastest growing commercial bank, Pan Asia Banking
Corporation PLC (PAB) recently launched its newest savings account
designed for the corporate clientele to park their excess funds while
enjoying one of the highest interest rates on offer in the market.
Pan Asia Bank's Blue Chip - Money Market Savings Account offers any
corporate in the country to send their excess moneys to Pan Asia Bank
and earn an interest rate of 6.25% per annum in the current context
(rates are subject to change weekly) and offer the flexibility to remit
their monies back with interest even on the very next day.
Besides, this account also offers the ability for a company to
operate the account combined with a current account with an inbuilt
'sweep-in, sweep-out facility' where automatic fund transfer between the
savings account and the current account are made possible.
At a time when such investment opportunities are extremely rare for
the corporate in Sri Lanka, Pan Asia Bank's 'Blue Chip - Money Market
Savings Account' offers an ideal opportunity for the Lankan businesses
to earn an extra return on their money, which otherwise would have been
idling in their current accounts.
Explaining the reasons for coming up with a savings product for the
corporate clients, the bank's Deputy General Manager (DGM), Treasury,
Richie Dias said although there are many savings products in the market
offering higher interest rates for the retail customers, there are not
many products that cater exclusively to meet the requirements of
corporate clients.
"This is an ideal opportunity for companies who operate with excess
liquidity to earn an extra income by transferring funds to us as an
enhanced interest rate returns can be obtained as opposed to keeping
money in a current account. Since 'Blue Chip - Money Market Savings
Account' offers tiered bases interest rates, higher the amount invested,
the higher the rate of return would be for the customer." Dias said.
Above 6% Savings interest rate
Another notable feature in the account is that the interest rate
offered is fixed for a week, based on prevailing inter-bank money market
interest rates.
Every Monday, the bank advertises the interest rate on the Press so
that those companies which intend to invest in the account are able to
know in advance the rate which will be applicable on their funds.
Investments can be made for periods as short as a single day and then
get the funds transferred back.
The bank will also soon start an e-mail campaign to all companies
communicating the interest rates offered on the account.
A company which maintains a balance between Rs.5 million and Rs.25
million in the account will earn a minimum interest rate of 6.25% while
a balance exceeding Rs.25 million will earn an interest rate over 6.50%
(There are current interest rates. Rates are subject to change weekly).
The bank will calculate the interest on the daily balance and credit
to their account on a monthly basis.
"There are many occasions where companies find themselves in cash
rich positions due to the seasonality of their working capital cycle or
sudden realization of their stocks. So, until they start their next
working capital cycle, these moneys won't earn any income if they just
lie idle in a current account. That is why the 'Blue Chip - Money Market
Savings Account' is an ideal solution for such companies that look to
optimize returns on their funds." he remarked.
Sweep-in, sweep-out facility
The inbuilt 'sweep-in, sweep-out' facility in the account enables the
bank to transfer funds between the savings account and the current
account of the company without having to give instructions each and
every time such a transfer is required.
"We take care of the management of the funds on behalf of the
company. For instance, if you receive a cheque to your current account,
the funds will automatically be transferred to the current account from
the Blue Chip - Money Market Savings Account and at the end of the day
the entire collection of your current account will be transferred back
to Blue Chip - Money Market Savings Account for which you will earn an
interest income," Dias added.
The bank will soon launch its state-of-the-art internet banking
platform and the mobile app which will bring the operating and the
monitoring of the account to the company's accountant's or the owner's
fingertips.
Any corporate entity registered in Sri Lanka can open an account at
any of Pan Asia Bank's 79 branches scattered across the country to enjoy
these hassle free benefits while enjoying the highest interest rate
available for a corporate savings deposit.
Understanding the Sri Lankan Corporate clientele
The product was designed after closer understanding of the
requirements of the corporate clientele of the country.
"This is in line with our bank's ethos of understanding the customer
better than anyone else. We have successfully done this in our retail
banking segment and we are now testing our strengths in the corporate
banking segment. Since the launch of the product recently, we have
received an extremely positive response from the market" Dias said.
Pan Asia Bank has been at the forefront of introducing innovative
value added products to the market due to its commitment to understand
real customer requirements.
In 2014, the bank was adjudged as the most innovative bank in Sri
Lanka by the United Kingdom's Global Banking & Finance Review while in
2015 Pan Asia Bank was ranked among the top three banks in Sri Lanka at
the coveted National Business Excellence Awards organized by the
National Chamber of Commerce of Sri Lanka.
Pic Caption : Richie Dias
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