Higher interest rates enable depositors aspiring to be millionaires to reach the milestone with lower investments
A committed fixed monthly deposit of just Rs 4,280 can begin the journey to millionaire status following an upward revision of the interest rate applicable to the popular aspiration-linked ‘Millionaire’ Investment Plan of the Commercial Bank of Ceylon to 15% per annum.
Reflecting the upward movements of interest rates, Sri Lanka’s benchmark private sector bank has announced the new monthly deposit requirements for two to six-year plans. Plans culminate in the depositor amassing the milestone million-rupee account balance, under this unique investment plan originally launched in 2015.
Accordingly, a fixed monthly deposit of Rs. 35,600 over two years, guarantees the depositor an amount of Rs 1 million, and a deposit of half that value – Rs 17,800 a month – will enable the depositor to accrue a balance of Rs 500,000 in two years, or to become a millionaire in four years, the Bank said.
Designed to be a flexible, easy-to-manage investment plan that generates expected returns within a targeted period of time, Commercial Bank’s Millionaire account enables customers to build up a minimum balance of Rs 500,000 or multiples of Rs 500,000 with no upper limit on the targeted investment over a period of two, three, four, five or six years.
The product retains another popular feature – the eligibility of the depositor to borrow an amount equivalent to up to 75% of his or her cumulative balance for any urgent requirement during the term of the investment plan.
Described as an aspiration-linked investment plan that enables account holders to build up a target amount within a specific period without a high initial investment, the ‘Commercial Bank Millionaire Investment Plan is designed primarily to cater to a segment that needs to fast track savings for specific purposes such as purchase of assets, children’s or own education or weddings.
Available to any Sri Lankan over 18 years of age, the investment plan also allows depositors to nominate beneficiaries to receive the total amount invested, without any penalty charge, in the event of their demise before maturity.
Sri Lanka’s first 100% carbon neutral bank, the first Sri Lankan bank to be listed among the Top 1000 Banks of the World and the only Sri Lankan bank to be so listed for 12 years consecutively, Commercial Bank operates a network of 268 branches and 940 automated machines in Sri Lanka. Commercial Bank is the largest lender to Sri Lanka’s SME sector and is a leader in digital innovation in the country’s Banking sector. The Bank’s overseas operations encompass Bangladesh, where the Bank operates 19 outlets; Myanmar, where it has a Microfinance company in Nay Pyi Taw; and the Maldives, where the Bank has a fully-fledged Tier I Bank with a majority stake.