“Garusaru”, the specialised Fixed Deposit for Senior citizens which was launched exactly one year ago by Capital Reach Leasing has shown a remarkable growth during the year and has managed make new in-roads into the senior citizens market. The Deposit focuses on and caters to the retired population of the Island. “Garusaru” has managed to, go a long way to bridge the gap existing in today’s market for a properly structured retirement plan for senior population.

The managing director commenting on the product said that Capital Reach Leasing has looked into the needs of senior citizens when designing the product. He further said “there are three broad factors important to this sector and popularity of ‘Garusaru’ lies in Capital Reach fulfilling these.

First and foremost, being the concern regarding the security of the deposit; This is a very legitimate concern for any depositor. What makes some companies safer than others ? What are these critical indicators laymen should look at ?

Primarily check whether it is a Registered Finance Company, legally allowed to accept deposits. The Central Bank of Sri Lanka publishes the list of registered institutions every quarter. All potential depositors should go through this list

Whether the company is profitable and has been in operation for some time.

Where does the company invest depositor’s money ? This is another factor that should be looked into. If it is on unsecured loans, it should be a concern for the depositor.

The non performing loan (NPL) ratio of the company, which can be gathered from the published accounts of the company every 6 months. (It is compulsory for the Finance Companies to publish their accounts every six months under Central bank directions.)

The more educated you are on the financial risks, the better you will be able to make a correct decision. The fact that Capital Reach Leasing is among the 32 registered finance companies in Sri Lanka with eight years of profitable operation behind it in the leasing market is a significant achievement. The strong balance sheet with sound capital adequacy / liquidy ratios combined with the company’s above industry average NPLs(Non Performing Loans), Net Profit Margins, sound corporate governance and comprehensive risk management practices makes Capital Reach Leasing an institution that can offer every stability combined with higher returns to the depositor. Further the depositor’s money is 100% invested in lease and hire purchase facilities of Capital Reach Leasing, all of which are backed by tangible assets of high security value.

The second factor is the attractive interest rates offered by Capital Reaching Leasing to the senior citizens. Capital Reach has recognised senior citizens as deserving the highest returns for the services rendered to the country during their productive years and now in their retirement they deserve to have a good quality of life. That is why every Capital Reach Leasing senior account carries additional interest of 1% if the citizen is over 55 years and additional interest of 2% if over 70 years of age. We believe that the retired population of a country should get the best value for their hard earned money. Hence Capital Reach ‘Garusaru’ Fixed Deposit, has been tailor made to meet these requirements. Today ‘Garusaru’ is becoming immensely successful for recognizing these factors.

Third factor is the flexible and the personalised service provided by Capital Reach Leasing. The excellent service has attracted most number of senior citizens to Capital Reach. If necessary Capital Reach staff is trained to provide “door-step” service to the depositor. The deposit interest maybe collected personally, or directly deposited to each account, posted or even delivered personally to all depositors. Many other benefits are given to the depositors; over the counter loan facilities as well as yearly draws which offers gifts, air tickets and many more benefits.

Commenting on the concern among depositors regarding the reliability of finance companies, the managing director said “the era of failed finance companies are long past. A few bankruptcies in this sector happened in early 1980s, when the finance companies were not properly regulated. Some companies operating with inadequate core capital, and low liquidity combined with bad management inevitably lead to crashing of few companies. Today’s Registered Finance Companies, by contrast are not only required to have a minimum core capital, but they are also required to keep enough liquid assets to absorb the shocks of the economy.”

The lack of retirement planning has impeded the most senior population from enjoying the benefits of their retirement fully. Proper planning can enhance the quality of life as well prepare for any unknown risks like sickness. The retired life span of the today’s population has increased significantly with people living longer. Therefore, it is imperative that everyone plan their retirement which can be as long as 1/3 rd of ones total life span!