Special interest scheme for FDs of senior citizens from today

The Special Interest Scheme for Senior Citizens, which grants 3% higher interest for 12-month fixed deposits will be in effect from today (01), the Ministry of Finance has announced.

The scheme was approved by the Cabinet of Ministers under the Budget 2025 proposals.

The scheme aims to provide additional financial support to senior citizens by offering enhanced returns on their fixed deposit savings, the Finance Ministry said in a statement.

The decision to provide relief was made in response to several critical factors, including the high cost of living, reduced market interest rates, and the increasing financial challenges faced by senior citizens, particularly in managing essential expenses like healthcare costs. Recognizing the need to support this vulnerable group, the government has prioritized the facilitation through this scheme, the Ministry noted.

Accordingly, the Special Interest Scheme for Senior Citizens – 2025 is open to resident Sri Lankan citizens aged 60 years or above. Fixed deposits under this scheme can be opened during the period from July 1, 2025 to December 31, 2025, and all such deposits must have a 12-month fixed deposit tenure. The total value of deposits under the scheme should not exceed Rs. 1 million per depositor, regardless of the number of participating banks.

The Finance Ministry said senior citizens will be entitled to receive the higher of the published fixed deposit rate of the bank or the Average Weighted Fixed Deposit Rate (AWFDR) plus 3% per annum. Interest under this scheme must be withdrawn monthly.

The scheme will be implemented through the 17 licensed commercial banks; five (05) government banks and twelve (12) private banks that have confirmed participation. As part of the process, customers are required to provide a declaration confirming that the funds deposited are their own, their monthly income is less than Rs. 150,000, consenting to the sharing of relevant information with the Ministry of Finance, Planning and Economic Development for verification purposes, agreeing that any false information provided will result in disqualification from receiving the interest subsidy.

The government has allocated Rs. 15 billion under Budget 2025 to provide the interest subsidy to participating banks in order to ensure senior citizens receive the additional interest benefit without delay.

The statement said, senior citizens who wish to benefit from the scheme should visit the nearest branch of the participating banks from July 1, 2025, with their National Identity Card (NIC) and other required documents, including the TIN issued by the IRD, to open a fixed deposit under this scheme.

The Ministry of Finance has also noted its commitment to safeguarding the welfare of senior citizens and ensuring that this program is implemented efficiently and transparently.