HNB Fixed diposits

Frequently Asked Questions (FAQ)

Secure your Financial Future

Fixed Deposit FAQ

What are the Eligibility criteria to open a Fixed Deposit?

• A citizen of Sri Lanka above 18 years of age holding a valid National Identity Card (NIC) / valid Passport or Driving License.
• A Sri Lankan citizen residing temporarily outside Sri Lanka.
• A person holding dual citizenship.
• Non-resident who possesses a resident visa.

Other than an individual who else could open a Fixed Deposit?

Term Deposit Accounts can be opened by Individuals singly or jointly and in addition it could be opened by Partnership firms, Private and Public Limited Companies, Specified Associations, Societies, Trusts.

Can individuals open joint Fixed Deposit?

Yes, Deposit accounts can be opened by an individual in his own name or by more than one individual in their own names.

In case of a jointly held fixed Deposit who could operate the account

Operation of Joint Accounts – The Joint Account opened by more than one individual can be operated by a single joint holder if the joint holders have agreed in the mandate under operating instructions (EITHER PARTY OPERATION). If not, by more than one individual/jointly as specified in the mandate. The change for operating instructions can be modified only with the consent of the joint account holders.

I am a Sri Lankan citizen residing outside of Sri Lanka, how can I open an account?

You can forward the relevant scanned documents through e-mail and funds could be transferred to one of our designated bank account in Sri Lanka. The original documents will have to be submitted to us subsequently.

Can a holder of a power of attorney sign the deposit application form?

Yes. At the time of opening the account the original power of attorney should be submitted along the copy.

What are the documents needed to open a Fixed Deposit?

• For individuals – A duly completed Deposit application, copy of NIC/copy of valid passport/copy of driving license, if the depositors address differs from the NIC a utility bill or a copy of a bank statement with the current address of the depositor issued within 3 months of the date of deposit and a KYC form (Know Your Customer)
• For Others (Partnership firms, Private and Public Limited Companies, Specified Associations, Societies, Trusts) Duly completed Deposit application, copy of the registration of the entity, KYC form of the entity, Copies of NIC’s of Directors/Authorized signatories and their individuals KYC forms, resolutions/ minutes confirming decision taken to place a fixed deposit with HNB FINANCE. Other relevant documents are to be obtained as mentioned in the application form.

Why is the KYC form important?

Know Your Customer Form – In order to prevent identity theft, identity fraud, money laundering, terrorist financing. The Central Bank of Sri Lanka has directed all banks and financial institutions to complete a KYC form before opening an account. This involves verifying customer,s  identity and address by requesting documents that are accepted as relevant proof .
Mandatory details required under KYC Forms are proof of identity and proof of address, NIC, valid Passport, or Drivers’ License are accepted as proof of identity. proof of residence can be by way of electricity or telephone bill or a letter from the Employer or any recognized public authority certifying the address.

Will this information be confidential?

Yes, under Section 61 of the Finance Business Act No 42 of 2011, strict confidentiality has to be observed by all officers of the company in respect of all customer transactions unless it is required to be disclosed by a Court of law or in compliance with any other written law

What will happen if I do not provide the required KYC information or documents to HNB FINANCE?

HNB Finance will have the right to reject the deposit.

Is there provision for Nomination for a Deposit?

Yes. You can nominate any person/s as you wish. If you are nominating more than one person you should indicate each person’s share. If not, we will consider on equal share basis. The full name/s of the nominees and their identification numbers such as NIC/PP/DL should be submitted by the depositor.

Can I change the nominees?

In the case of a new deposit the mandate provides provision for nomination. For all other subsequent changes, we need a written confirmation from the depositor/s. For subsequent changes you could obtain a nomination form the company.

In a case of a joint account could any one of the joint holders change the nominee?

No. In a joint account all joint holders consent is necessary to change the nomination.

In a case of a joint account if one of the joint holders are deceased can the surviving holder/s operate the account?

Yes. The surviving holder/s can operate the account without the consent of the nominee. Nominee will come in to effect only in the event of demise of all depositors.

What happens in the case of the death of a depositor? How will the payment be made?

Upon the submission of the following documents by the nominee, payment or transfer could be made to the nominee;

• Deposit certificate
• Certified copy of the death certificate of the depositor
• Identification of the Nominee
• Duly completed Affidavit by the nominee
• Instruction letter from the nominee

When I open an account do I get a fixed deposit certificate?

Yes, you will be given a certificate with the following information. Deposit account number, Date of deposit, Date of maturity, Value of deposit, Names of the depositor/s with their identity details, Mode of interest payment, Terms and conditions governing the deposit.

What happens if I lose or misplace my certificate?

To perform any transaction, you need have the certificate. In such instances you could request for a duplicate certificate with the following documents. Request letter from the depositor/s, duly perfected Affidavit attested by a Notary/ JP, (A specimen of an affidavit could be obtained from the company)

 

What are the present rates of interest?

Click here for the present rates of interest.

What happens if the interest rate changes during the contracted deposit period?

There will be no change to the terms since, we are contracted to the rate until its maturity as per current rules.

What are the periods for which deposits are accepted at present?

12 Months, 18 Months, 24 Months 36 Months 48 and 60 Months.

Can I make a deposit for a short period?

Yes. You could make a fixed deposit for a minimum period of 12 months or if it Is less than 12 months you could open a Savings account.

How do make payment for the deposit?

The deposit can be made to your nearest HNB Finance Branch, by means of Cash; fund transfer directly to a HNB FINANCE designated Bank account or Cheque/ bank draft issued in favor of “HNB Finance Limited”

Can funds be deposited from time to time as additions to the existing deposits?

Additions/part payments could be made only at the date of Maturity. Alternatively, you could open a new deposit account.

 

Can deposits be made by way of cheques issued favoring the depositor or third party and endorsed in favor of HNB FINANCE?

Cheques favoring a third party (not the depositor) are not accepted. However, uncrossed cheques drawn in favor of the depositor could be accepted. All deposits made by cheques are subject to realization of the proceeds.

Can I withdraw my Fixed Deposit before maturity?

Yes. You could at any given time. However, you could obtain a FD agent’s Loan without withdrawing your deposit.

Who is eligible to open a Senior Citizens account?

Customers who are 60 years of age or above are eligible to obtain a HNB FINANCE Senior Citizens account

Can a joint account be opened with a Senior Citizen where one of the Citizens account holders is below the qualifying age?

No, At the time of opening the account all joint holders must complete the age of 60 Years.

What happens to my account when I reach the age of a Senior Citizen (60 years)?

Talk to your customer care officer, and you could make necessary changes when renewing / opening a new deposit or savings account.

What other benefits are available for HNB FINANCE Depositors?

• Loan facilities against the deposit.
• Letters of guarantee (Bank Guarantees)
• TR facilities through ATM’s

 

Interest Payments

Do you pay monthly interest on deposits?

Yes, interest can be paid monthly or at maturity

What are the modes by which interest is paid?

As per the instruction given by the depositor the interest payment can be arranged as follows;

• Payment to the account designated by the customer (E.g. HNB FINANCE Savings account or other bank accounts)

Can you pay interest to the second depositor or a designated person?

Yes, with the instructions of deposit holder/s the interest can be paid either to one of the joint holders or to a third party with a written consent of the deposit account holders.

 

When do you intimate the maturity of the deposit?

A computer generated renewal notice is sent 14 days in advance of the maturity date.

What I should do to get my deposit renewed?

The completed renewal notice and the matured term deposit certificate should be sent to us or you may hand over these documents to any of our Branches to issue a new certificate on renewal.

 

Are the signatures of all the joint depositors required on the renewal form?

This is subject to the operating instructions given at the time of opening the account.

If I do not respond to the renewal notice, what will happen to my deposit?

On a Monthly Interest payment fixed Deposit the capital will be renewed automatically with the prevailing interest rate for the same period. And, if it is a maturity deposit the capital will be renewed with the accrued interest and will be renewed for the equal period at the prevailing rate.
Payments/ Withdrawals

At maturity how can I withdraw my deposit?

You have to surrender the original deposit certificate duly discharged with the payment instructions. Refund could be by way of either:

• Cash
• Cheque
• Remitting to a bank account.

Do I need to give notice of withdrawal?

No notice of withdrawal is necessary. However, In a case of a withdrawal through a branch it is advisable to give one days’ notice as the payments are processed at a central location.

In case I need money urgently, can I withdraw the deposit?

Yes, you can. The Deposit could be withdrawn on request of the depositor and at the discretion of the company, subject to a discounted interest rate. In a case of a joint account withdrawal will be allowed as per the operating instructions given by the joint holders.

Can I get part payment prematurely?

Yes. The same procedure is applicable as for a full premature withdrawal. However, in such cases, the depositor can also consider obtaining a loan up to 90.00% on maturity deposits and up to 70% on monthly deposits of the deposit amount.

Is the signature of one of the depositors sufficient for payment at maturity or prematurely?

This depends on the operating instructions given at the time of opening of the account, as in some cases it could be both/all or either party.
Loans /Temporary refund against the deposit

Will you allow a loan on the deposit?

Yes – you are eligible to apply for a loan against your deposit ranging from 70% to 90% of the capital value according to the category of the deposit

What notice is necessary to obtain a temporary loan?

No notice is necessary.

What are the documents needed to obtain a loan?

Original Fixed deposit certificate

• Loan application form signed by the depositor/s as per the operating instruction given in the deposit application

Can the loan be repaid in installments?

Yes. Until the Maturity of the Deposit takes place the loan can be repaid. Thereafter, if you wish the loan balance could be carried forward subject to renewal of the deposit.

 

Leasing FAQ

What are the advantages of financing through leasing?

• Facilities can be obtained much faster than traditional forms of financing
• Requires less documents
• Known monthly commitment
• Frees up bank lines
• Repayment plans according to your requirement (Structured and Residual Lease Facilities)

What are the types of equipment are financed?

Motor vehicles, three wheelers, motor cycles, tractors, construction equipment, plant and machinery, computers etc.

Are used vehicles/equipment financed?

Yes, used assets are financed subject to there being an established value for such assets. It is also a necessity for there to be a clearly identifiable owner for such assets.
We finance popular vehicles which are up to 20 years old subject to conditions

Who can obtain a lease facility?

Any individual, partnership or limited liability company could obtain a facility subject to the financier’s assessment of the applicant’s creditworthiness

Does one have to be a tax payer or a current account holder to be eligible to obtain a lease facility?

No. These are no pre requisites.

Do you need to pledge assets as collateral?

No. Leasing facilities are generally extended without additional collateral. However, there could be instances where additional collateral may be requested for especially when it comes to financing of equipment

What documents do I have to submit when applying for a lease facility?

• Invoice from the person selling the vehicle/equipment
• Valuation from a company approved value. Valuations could be obtained through our branch network (Except Brand New Vehicle).
• Proof of income of applicant and guarantors. If documents are not available, we could still consider based income/projected income assessment derived from discussions and onsite inspections
• Documents certifying/confirming sources of projected income.
• Project proposals in the case of equipment financing.
• Copies of NICs of the applicant and the guarantors

Can the payment plan be structured to meet my cash flow?

Yes, if income is seasonal.

How much would I have to pay as pre payments?

This would depend on the age of the asset, marketability of the asset, credit worthiness of the applicant etc.

Can a lease facility be repaid prematurely?

Yes. There would be a rebate for pre termination.

How long would it take to obtain a lease facility?

We are committed to finalizing an application within a day subject to all required information/documents being submitted.

Do I have to insure the asset financed?

Yes, the asset financed has to be insured (Full Insurance). Our fully owned subsidiary HNB Assurance will place the insurance with an insurer of your choice who is acceptable to us

Whom do I contact in order to obtain a lease facility?

Simply call your nearest branch or our customer service hotline on 0112024848 and we will assist you accordingly

Can the rental payments under lease contract be claimed as an allowable expense?

The rental could be claimed subject to the asset leased being used to generate income on a liable activity

 

Savings FAQ

What benefits do I enjoy if I open a Savings account with HNB Finance?

• You obtain a competitive higher interest rate.
• You receive an even higher interest when the account balance grows.
• You can access your account from any of our island wide network of branches. You can also access your account from any HNB ATM.
• You enjoy free standing order facilities.
• You select your desired account to suit your requirement. Refer product details on main web page.
• You can choose to have a pass book.

How can I withdraw money from a savings account?

You can withdraw the money from any of the HNB FINANCE Branch counters during office working hours or from HNB ATM’s up to a maximum of Rs. 150,000/= per day. 24×7 ( HNB FINANCE, HNB network)

Do you charge on ATM Withdrawals?

Rs.12/-will be charged on withdrawals and Rs. 7/= will be charged on Balance Inquiries. Please be aware that the Company reserves the right to amend any terms or conditions after notice.(These chargers are subject to changes)

Are your Branches Electronically Linked?

Yes, our branch network is linked which means, if you deposit money from Colombo you could withdraw your money from any HNB FINANCE Branch or vice versa.

How can I make deposits to my savings account?

You can make deposits at any branch counter by cash or cheque. If deposited by cheque , the cheque should be drawn in favor of ” HNB Finance Company PLC O/A of Account holders name & account number.” If necessary fund transfers could also be arranged

Do I have to maintain a minimum balance in a savings account?

Yes. In a Normal/Senior Citizen savings account Rs. 250/= to be maintained and In a Yalu Savings account Rs.250/= and in a Miyulasi Savings account Rs.250/=

Is there a charge if I do not maintain the minimum balance?

No

How can I obtain an HNB FINANCE ATM Card?

If you are an existing savings account holder (except Yalu) you may forward an application form to any of our branches who will make arrangements to provide you the ATM card within maximum of 5 working days.

What is required to open a “HNB FINANCE Yalu” Children’s Savings Account?

HNB FINANCE Yalu Children’s Savings Account can be opened by a parent or a Legal guardian of a child below the age of 18 year, following are the pre requests

• Account could be open with a maximum deposit of LKR 250
• A certified copy of the child’s Birth Certificate .
• A certified copy of the Parent/ Legal Guardian’s ID Card/ valid PP/ DL.

What are the special attractions for “HNB FINANCE Yalu” children’s savings accounts?

There are two types of HNB FINANCE Yalu savings accounts:

• Yalu Savings account with gift package – This account includes an attractive interest rate and a gift at account opening and as the account balance grows

 

What happens when a minor attains the age of consent / majority?

The company will send a letter requesting to convert the status of the account. The parent/guardian should make arrangement to forward a new savings application in the name of the Minor turned Major with the signature and a copy of the national identity card

Can parent/guardian withdraw the money in a “HNB FINANCE Yalu” Children savings account?

No. However in the following special circumstances withdrawals are allowed.

• If there is a necessity for the Childs benefit such as education and medical expenses a written request with proof of documents which satisfies the company will have to be submitted.
• The balance in a minor’s account may be transferred upon written instructions of the parent/guardian of the minor, to an account maintained in the name of the minor in an authorized deposit taking institution, upon completion of sixty months from the date of the first deposit or any time thereafter. The transfer should be effected by a cheque drawn in favour of the minor and crossed “account payee only”

 

Note: The company reserves the right to change any terms and conditions mentioned herein from time to time without prior notice.

Whom should I contact for further information?

HNB Finance Call Centre: 0112024848