Although the Central Bank has reduced rates for deposits maintained in commercial banks, the special interest rate of 15% offered by the Government for senior citizens’ savings accounts remains unchanged, the Ministry of Finance said.
Issuing a statement, the Finance Ministry said that the special interest rate granted for fixed deposits of senior citizens is in effect from the year 2015 without any changes.
“There is no truth in media reports that the 15% special bank interest rate which has granted by the Government for senior citizens has been reduced,” the Ministry said.
Interest income of senior citizens up to Rs. 1 million was exempted from withholding tax by the 2015 budget, while the 2018 budget increased the threshold of this interest income 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% to senior citizens,” the Finance Ministry added.