15% interest rate for senior citizens unchanged: FinMin

Although the Central Bank has reduced the rates for the deposits maintained in commercial banks, the special interest rate of 15 percent offered by the government for senior citizens has not been changed, the Finance Ministry said in a communiqué.

“There is no truth in the media reports published by different media saying that the 15 percent special bank interest rate, which has been granted by the government for senior citizens, has been reduced.

The special interest rate of 15 percent that has been granted for the fixed deposits, which are maintained by senior citizens, was introduced by Budget 2015 and it has been continuing with effective from March 3, 2015, without any change to it,” the communiqué stated.

Budget 2015 exempted income from the interest of senior citizens up to Rs.1 million from the withholding tax. 

Budget 2018 increased the threshold of this interest income for senior citizens up to Rs.1.5 million.

The Treasury has been paying nearly Rs.16 billion annually to commercial banks to provide an increased interest rate of 15 percent to senior citizens, the Finance Ministry said.