The bank is offering senior citizens a range of benefits including, an interest rate almost double that of normal savings account rates, free annual medical checks, discounts at selected outlets and a chance to win an overseas trip through an annual draw.

Tharaka Ranwala, Assistant General Manager Marketing and Deposits, told the Island Financial Review that the bank carried out a survey to find out what exactly senior citizens required of a savings account.

"The findings suggest that many senior citizens have medical expenses they have to meet. This is the main need. There is also a second need, which is really a want. About 90 percent of those surveyed said they would like to spoil their grandchildren," Ranwala said.

"Many senior citizens have their pensions or life savings invested in fixed deposits and they live off the interest earned. With interest rates coming down they are naturally concerned that there would be pressure on their ability to meet expenses. We designed this special account for them keeping these issues in mind," he said.

He said Sampath Bank wanted to help senior citizens maximise their returns.

Called the ‘Sampath Sanhinder Saver’ the account can be opened with an initial deposit of Rs. 1,000 and the interest rate is 4.25 percent per annum. For balances above Rs. 10,000 the interest paid would be 8.25 percent per annum.

"We would pay the interest twice a month, before the 15th and month end," Ranwala said, adding that interest would be compounded daily so that depositors benefit by interest payments being included when calculating interest for the next period.

Depending on the balance in the account, senior citizens would also receive free medical checks from Asiri Hospitals. They would also be eligible for discounts at Walkers, Vision Care, Gabo Travels, DSI, Asiri Hospitals and John Keells Hotels.

Bank dealers, say if profitability is to be maintained, fixed deposit rates would have to come down to at least 6 percent in order to fall in line with lending rate of 8 to 12 percent of state banks. This means the 8.25 percent interest rate for the Sampath Sanhinder Saver does not make sense.