Money market - linked FD’s from Nations Trust Bank

NEW PRODUCT: Nations Trust Bank, is offering investors an opportunity to take advantage of the highly volatile money market interest rates that have prevailed recently.

An investment opportunity has been structured in the form of a fixed deposit with a floating rate which is linked to the daily overnight Sri Lanka Inter-Bank Offered Rate (SLIBOR).

SLIBOR has recorded significant increases averaging 20.65% in March and trending even higher in April.

This is a unique product which caters to those investors who wish to profit from high short-term interest rates.

It is an ideal investment as the investor does not need to shop around for higher rates as the return is linked to a transparent market rate - SLIBOR.

“We believe that this is the most attractive product for investors in the market right now as we guarantee investors a minimum rate on their investment, which is commensurate with the current fixed deposit rates.

The investor is thus protected from any downward trend in money market rates”, DGM Retail Renuka Fernando said.

The minimum value per deposit would be Rs. 500,000 while the interest rate would be linked to overnight SLIBOR minus 1.5% per annum.

Depositors will also be entitled to an automatic overdraft limit for 90% of the value of the deposit at a rate of FD rate + 3%, based on the daily rate applicable to the Fixed Deposit, which would be accrued and payable monthly.