The Bank said it will now allow customers to build up a minimum balance of Rs 500,000 instead of Rs 1 million as originally envisaged, or multiples of Rs 500,000 with no upper limit on the targeted investment.
Holders of Commercial Bank Millionaire Accounts will also be eligible to borrow an equivalent of up to 75% of their account balances, a new feature introduced with the re-launch of the product.
Originally launched in 2015 as an aspiration-linked investment plan that enables account holders to build up a target amount within a specific period without a high initial investment, the ‘Commercial Bank Millionaire Account’ is designed principally to cater to a segment that needs to fast track savings for specific purposes such as the purchase of assets, children’s or own education or weddings.
The product is a flexible, easy to manage investment plan that generates expected returns within a targeted period of time.
It guarantees the depositor a balance of Rs 500,000 or multiples of Rs 500,000 in two, three, four, five, or six years, depending on how much he or she is willing to deposit each month.
Available to any Sri Lankan over 18 years of age, the Commercial Bank Millionaire Account that generates a balance of Rs 500,000 in two years requires a monthly deposit of Rs 19,155 per month.
A deposit of double that – Rs 38,310 per month – over two years guarantees the depositor a balance of Rs 1 million.
Depositors can nominate beneficiaries to receive the total amount invested without any penalty charge, in the event of their demise before maturity.
Sri Lanka’s largest and most profitable private bank and the country’s most-awarded financial institution, Commercial Bank plays a significant role in the national economy.
The Bank accounted for 4.31% of the total market capitalisation of the Colombo Stock Exchange (CSE) in 2016 with a market capitalisation of US$ 790 million at the end of the year.
The Bank is the largest lender in Sri Lanka to SMEs, having disbursed Rs 952 billion to the sector over the past five years, and channels 17.82% of the country’s export volumes and 8.36% of its import volumes.
For FY 2016, Commercial Bank reported Assets of Rs 1.012 trillion, Gross Income of Rs 93.143 billion, Net Profit of Rs 14.513 billion, a Deposits base of Rs 739.563 billion and a Loan Book of Rs 633.391 billion.
Commercial Bank’s overseas operations encompass Bangladesh, where the Bank operates 19 outlets, Myanmar, where it has a Representative Office in Yangon, the Maldives, where the Bank opened a fully-fledged Tier I Bank in September 2016 and Italy, where the Bank launched its own money transfer service in November 2016.