Govt. rolls out high-yield fixed deposit scheme for senior citizens

Thursday, 19 June 2025 03:31 - - {{hitsCtrl.values.hits}}

Cabinet approves special fixed deposit scheme for citizens aged 60+, effective 1 July to 31 December 2025
Offers 3% interest premium above AWFDR or bank’s declared rate—whichever is more beneficial to depositor
Maximum deposit limit set at Rs. 1 m per individual for a 12-month term
Cabinet Spokesman and Minister Dr. Nalinda Jayatissa says scheme aims to enhance financial security for retirees relying on savings-based income amidst ongoing economic reforms
Notes Govt. allocates Rs. 30 b to fund higher interest payments

By Charumini de Silva

Cabinet Spokesman and Minister Dr. Nalinda Jayatissa

The Government has decided to implement a special fixed deposit scheme for senior citizens aged 60 and above, offering higher interest rates to support their financial security.

As proposed in the 2025 Budget, the move was approved by the Cabinet of Ministers on Monday to ensure a stable and enhanced return on savings to provide greater financial security for senior citizens during a period of economic reform and transition.

Speaking at the weekly post-Cabinet meeting media briefing yesterday, Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said the scheme will be operational for fixed deposits opened from 1 July to 31 December 2025.

Each eligible individual will be allowed to deposit up to a maximum of Rs. 1 million for a term of 12 months.

The scheme guarantees a higher return by offering an additional 3% annually either above the Average Weighted Fixed Deposit Rate (AWFDR) or the bank’s declared fixed deposit rate, whichever is more beneficial to the depositor.

“The intent is to offer a guaranteed premium return above prevailing market rates,” he explained.

Dr. Jayatissa said the Government has allocated Rs. 30 billion to fund the higher interest rate offered under this scheme.

“This measure is expected to ease the financial burden on thousands of retirees who rely heavily on savings-based income,” he pointed out.

When asked if the Government intends to increase the maximum deposit threshold beyond the existing Rs. 1 million, he said it will depend on the public response and the number of accounts that will be opened in the next six months.

“Depending on the resilience of the banking system also the Government could explore options to extend the relief further,” Dr. Jayatissa added.

The proposal to this effect submitted by President Anura Kumara Disanayake in his capacity as the Finance, Planning and Economic Development was approved by the Cabinet of Ministers.

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