NDB breaks new ground by doubling interest for ‘Real Savers’

To encourage more savings, NDB yesterday launched what it described as ground breaking unique product branded ‘Real Savers,’ offering double the standard interest rate provided a few conditions are met.

Timing the launch to coincide with the upcoming World Thrift Day, NDB is offering 10.5% annual interest (100% above the standard 5.2%) on savings accounts with a minimum amount of Rs. 1,000. Customers must limit withdrawals once a month to qualify and any additional withdrawals will convert the account to an ordinary savings account.

Customers can choose a fixed monthly savings amount and NDB will follow up with a timely reminder via call or SMS about the upcoming deposit as well. Failure to save the pre-determined amount in a month would not enjoy the additional interest. For current accounts, a free standing order will be facilitated for monthly deposits to the ‘Real Saver’ account.

Unlike some of the savings schemes, NDB Real Saver has made the minimum deposit affordable whilst a customer of this account will not enjoy a debit card with the move designed to discourage withdrawals.

As at 30 June 2012, NDB at bank level had Rs. 95 billion in deposits up by 18% from end 2011. Savings deposits amounted to Rs. 12.2 billion or 13%, up by 8% in comparison to end December 2011. Time deposits are the bulk amounting to Rs. 76.6 billion, up by 24% over end 2011.

Via ‘Real Saver’ and its benefits, NDB hopes to increase savings mobilisation, harnessing the reach from the 70 branch network in the country.

“We at NDB strongly believe that fostering the habit of saving is essential in taking our country towards prosperity,” CEO Russell de Mel told journalists yesterday.

“Given the confidence and trust both on the bank and in the value offering, we see good prospect for the ‘Real Saver’ account,” NDB Chief Operating Officer Indrajith Wickramasinghe added.

The launch of a dedicated product also comes after two years of NDB promoting countrywide the value of savings beyond mere money via a illustrations filled, easy to read small booklet in Sinhala titled ‘Ithiri Karamu, Api Hademu, Rata Hadamu’.

NDB’s Assistant Vice President and Head, Channels and Retail and SME Business Development Yasas Hewage said the ‘Real Saver’ account aims to create, encourage and reward individuals who are real savers. “Following our extensive public awareness that spanned for two years covering children and adults, time is right to launch the right product,” he added.

NDB said it has noticed that there’s a growing fragment of individuals who are catching up with the belief of ‘spending is out and simplicity is in’. NDB defines these individuals as the ‘Real Savers,’ who have found ways to create wealth not by buying things or earning more but by making a commitment to save in small ways, continuously. The ‘Real Saver’ account aims to encourage individuals to embed this savings habit into their lifestyles while being rewarded for their commitment to save.

Hewage also said ‘Real Savers’ not only save money but also try to eliminate wastage of any form. In that context the launch of Real Saver account reiterates NDB’s commitment to inculcate a savings habit in the people.

“Through ‘Real Saver’ we hope to advocate responsible consumption of resources while accumulating financial savings. We hope that the ‘Real Saver’ will be an inspiration to all Sri Lankans to drive the nation towards a sustainable economic progress” Hewage added.

NDB has been persistent and passionate in instilling the savings habit in the people of Sri Lanka. NDB’s ‘Ithuru Karana Maga’ savings proposition, points out that the savings made on essentials such as water, electricity, telephones, time and even environment, will translate into monetary savings in the long term.

NDB’s savings initiatives have been extended to all Sri Lankans through widespread educational campaigns. This Thrift month, the bank will reflect the message of a ‘Real Saver’ – the ideal savings account for saving.