Money Market Accounts in Sri Lanka (2026): Compare Bank Rates, Minimum Deposits & Returns
Imagine you have Rs. 1 million sitting in a regular savings account earning 2.5% annual interest.
That’s approximately Rs. 25,000 in gross interest per year.
But what if you could earn 7.5% while keeping your money accessible through a bank savings account?
At that rate, your Rs. 1 million could generate approximately Rs. 75,000 in gross annual interest, assuming the rate remains unchanged.
That’s an additional Rs. 50,000 before taxes.
Several Sri Lankan banks offer money market savings accounts designed for customers who want potentially higher returns without committing their money to a traditional fixed deposit.
However, not every money market account offers the same interest rate, minimum deposit or withdrawal conditions.
Let’s compare eight banks, examine how these accounts work and calculate what you could actually earn.
Rates researched on 25 September 2026. Money market rates can change weekly, and some banks publish different rates for different account balances. Always check the latest rate directly with the bank before depositing.
What Is a Money Market Account?
A money market account is a type of savings deposit offered by certain banks. Its interest rate is generally linked to short-term money market conditions rather than remaining fixed for several months or years.
Many Sri Lankan banks calculate interest daily and credit it monthly.
Unlike a conventional fixed deposit, a bank money market savings account generally allows you to withdraw money when needed, subject to the bank’s account terms and transaction limits.
However, there are three important differences from an ordinary savings account.
First, money market accounts often require a higher initial deposit, sometimes Rs. 500,000 or Rs. 1 million.
Second, the advertised interest rate may apply only while your balance remains above a particular threshold.
Third, the interest rate can change. A bank offering 7.5% this week might offer a different rate next month.
Also, don’t confuse a bank money market savings account with a money market unit trust fund. A unit trust is an investment product with different risks, redemption arrangements and investor protections. The products compared here are bank deposit accounts.
Money Market Account Interest Rates in Sri Lanka
Here is a comparison of eight banks based on their published product information and rate schedules.
| Bank | Initial Deposit | Published Rate at Rs. 1 Million |
|---|---|---|
| Commercial Bank | Rs. 100,000 | 7.50% |
| Sampath Bank | Rs. 500,000* | 7.25% |
| HNB | Rs. 500,000 | Confirm current rate |
| NDB Bank | Rs. 1,000,000 | 7.50% |
| Seylan Bank | Rs. 500,000 | 6.25% |
| DFCC Bank | Rs. 500,000 | 6.25% |
| Nations Trust Bank | Rs. 1,000,000 | 7.25%** |
| Union Bank | Rs. 200,000 | 3.75% |
All rates are nominal annual rates before tax.
*Sampath’s Rs. 500,000 opening requirement was reported in July 2026; reconfirm it with the bank.
**Nations Trust’s published rate card shows 7.25%, while its product page displays 6.25%. Confirm the applicable rate before depositing.
Commercial Bank’s displayed rate is reviewed weekly. DFCC’s quoted rates apply from 21 to 27 September 2026. The latest clearly dated rate schedules located for NDB, Seylan and Union Bank were published on 24 August, 26 May and 1 July 2026, respectively. HNB’s publicly accessible page still shows 6.5%, last reviewed in June 2025, so it should not be treated as a confirmed September 2026 rate.
Let’s examine the actual conditions behind these figures.
1. Commercial Bank Money Market Account
Commercial Bank offers a money market account with a comparatively accessible published initial deposit requirement of Rs. 100,000.
According to its official key facts document, customers must maintain at least Rs. 100,000 to earn interest.
The bank’s published rate schedule showed 7.5% annually when researched for this article. The rate is reviewed weekly.
Interest is calculated daily and credited monthly.
Customers can access their money through the bank’s digital banking services, ATMs and branches, subject to applicable transaction limits and charges.
An attractive feature is that the published minimum balance is considerably lower than the Rs. 500,000 or Rs. 1 million required by several competing accounts.
However, you should reconfirm the applicable weekly rate and whether any additional conditions apply to your account.
Commercial Bank – Current Interest Rates
Commercial Bank – Money Market Account Key Facts
2. Sampath Bank Money Market Account
Sampath Bank offers a money market account with interest calculated on the daily account balance and credited monthly.
Its published September rate information shows the following balance tiers.
| Account Balance | Annual Interest |
|---|---|
| Below Rs. 1 million | 2.00% |
| Rs. 1 million to below Rs. 20 million | 7.25% |
| Rs. 20 million and above | 7.50% |
The minimum initial deposit has been reported as Rs. 500,000, although you should verify the current opening requirement directly.
The difference between the first two interest tiers is particularly important.
If your balance is Rs. 900,000, the lower published rate applies. Once your qualifying balance reaches Rs. 1 million, the published rate increases substantially.
This makes the minimum qualifying balance especially relevant when deciding how much money to maintain in the account.
Official Sampath Bank Money Market Account
Sampath Bank Rates and Charges
3. HNB Money Market Savings Account
Hatton National Bank offers a money market savings account for individuals, businesses and institutions.
The bank advertises a minimum initial deposit of Rs. 500,000 and interest rates linked to interbank money market conditions, with weekly revisions.
It also advertises unlimited withdrawals, subject to the account’s applicable terms and banking transaction limits.
HNB’s publicly accessible interest-rate page showed 6.5% annually, but its stated review date was 17 June 2025.
Because that is not a recent rate confirmation, prospective depositors should contact HNB for the currently applicable interest rate rather than rely on the older published figure.
Also ask whether the bank has changed its minimum balance requirements or introduced any additional account charges.
HNB Money Market Savings Account
HNB Published Savings Interest Rates
4. NDB Money Market Savings Account
NDB offers a money market savings account with a minimum initial deposit of Rs. 1 million.
Its published rate schedule dated 24 August 2026 shows two interest tiers.
| Account Balance | Annual Interest |
|---|---|
| Below Rs. 1 million | 2.00% |
| Rs. 1 million and above | 7.50% |
But there is an additional condition worth understanding.
NDB’s key facts document specifies a minimum monthly average balance of Rs. 1 million. If this requirement isn’t maintained, the bank may charge a minimum-balance fee according to its tariff.
Therefore, having Rs. 1 million on the day you open the account isn’t necessarily enough if you regularly withdraw large amounts.
The account also provides access to supported digital banking and fund-transfer services.
Before opening one, check the current weekly interest rate and the charges applicable when the average-balance requirement isn’t met.
5. Seylan Bank Money Market Savings Account
Seylan Bank’s money market savings account has a published minimum initial deposit of Rs. 500,000.
The bank’s rate schedule, last updated for this product on 26 May 2026, provides several interest tiers.
| Account Balance | Annual Interest |
|---|---|
| Below Rs. 10,000 | 0% |
| Rs. 10,000 to below Rs. 500,000 | 2.50% |
| Rs. 500,000 to below Rs. 1 million | 5.25% |
| Rs. 1 million to below Rs. 10 million | 6.25% |
| Rs. 10 million and above | 7.00% |
Seylan allows any number of withdrawals under its advertised product features and provides internet banking and account statements.
For someone maintaining approximately Rs. 500,000, the published 5.25% tier is an important figure to compare against the returns offered by other banks at the same balance.
However, the account’s rate changes as your qualifying balance moves between tiers.
Confirm the latest rate card before making a deposit.
Seylan Money Market Savings Account
6. DFCC Xtreme Money Market Account
DFCC offers its Xtreme Money Market Account in Sri Lankan rupees and selected foreign currencies.
Its minimum initial deposit for a rupee account is Rs. 500,000.
The published rupee rates for 21–27 September 2026 are:
| Account Balance | Annual Interest |
|---|---|
| Below Rs. 500,000 | 0% |
| Rs. 500,000 to below Rs. 1 million | 2.00% |
| Rs. 1 million to below Rs. 50 million | 6.25% |
| Rs. 50 million and above | 7.50% |
The rupee account’s rate is linked to the Average Weighted Call Money Rate and reviewed weekly.
Interest is calculated on the daily balance and credited monthly. DFCC also advertises debit-card access and other banking facilities.
Notice the difference between maintaining Rs. 500,000 and Rs. 1 million.
A person maintaining Rs. 750,000 would fall into the published 2% tier rather than the 6.25% tier.
The higher published rate for balances of Rs. 50 million and above is relevant to much larger depositors and shouldn’t distract smaller savers from the rate applicable to their actual balance.
DFCC Xtreme Money Market Account
7. Nations Trust Bank Money Market Savings Account
Nations Trust Bank offers a money market savings account with a published initial deposit of Rs. 1 million.
Its current online rate card displays 7.25% annually for balances of Rs. 1 million and above, with zero interest below that threshold.
However, the bank’s product description still displays a 6.25% rate for the qualifying tier.
Because these two official pages differ, you should obtain the applicable rate from the bank before opening an account.
The account provides digital banking access, daily interest calculation and monthly interest credits.
Nations Trust also advertises no withdrawal restrictions under its product terms.
The zero-interest threshold is particularly important if you intend to withdraw from the account regularly.
Official Nations Trust Money Market Account
Nations Trust Published Savings Rates
8. Union Bank Money Market Account
Union Bank offers a money market savings account with a published initial deposit requirement of Rs. 200,000.
Its rate schedule, last updated on 1 July 2026, shows the following tiers.
| Account Balance | Annual Interest |
|---|---|
| Rs. 200,000 to below Rs. 2 million | 3.75% |
| Rs. 2 million to below Rs. 5 million | 6.75% |
| Rs. 5 million to below Rs. 10 million | 7.25% |
| Rs. 10 million and above | 8.00% |
Union Bank states that interest is calculated daily and credited monthly.
Its account is particularly worth including in a comparison involving larger deposits because the rate changes significantly as the balance moves through the published tiers.
For example, the advertised rate on Rs. 1 million is considerably different from the rate available when maintaining Rs. 10 million.
As with the other banks, verify the latest interest rate and any minimum-balance or withdrawal conditions directly.
Union Bank Savings Interest Rates
How Much Interest Can You Actually Earn on Rs. 1 Million?
Let’s calculate an example using a money market account paying 7.5% annually.
Assume you maintain Rs. 1 million throughout the year, the interest rate stays at 7.5%, and the bank deducts 10% Advance Income Tax (AIT) from your interest.
| Description | Amount |
|---|---|
| Deposit | Rs. 1,000,000 |
| Illustrative annual interest | 7.50% |
| Gross annual interest | Rs. 75,000 |
| Average gross monthly interest | Rs. 6,250 |
| Estimated 10% AIT | Rs. 7,500 per year |
| Net annual interest | Rs. 67,500 |
| Average net monthly interest | Rs. 5,625 |
This is a simplified calculation, not a guaranteed return or an actual monthly bank statement.
Money market interest is generally calculated daily. Month length, balance changes, weekly rate revisions and any interest retained in the account will affect the actual amount credited.
If interest remains in the account, subsequent interest calculations may also include earlier interest credits, subject to the bank’s rules.
What If You Deposit Rs. 500,000 Instead?
At smaller balances, the interest-rate tier can make a significant difference.
For example, suppose two banks offer 7.5% and 5.25% respectively on a qualifying Rs. 500,000 balance.
| Account A | Account B | |
|---|---|---|
| Deposit | Rs. 500,000 | Rs. 500,000 |
| Annual interest rate | 7.50% | 5.25% |
| Gross annual interest | Rs. 37,500 | Rs. 26,250 |
| Net annual interest after 10% AIT | Rs. 33,750 | Rs. 23,625 |
The annual difference would be approximately Rs. 10,125 after the assumed tax deduction.
But compare the complete account terms before making a decision.
For example, an account with a high published rate might impose a minimum monthly average balance, additional service fees or limitations that don’t suit your circumstances.
And because rates can change, today’s interest difference might not remain the same throughout the year.
The Biggest Mistake: Ignoring the Minimum Balance
Imagine opening an account that offers 7.5% once you maintain Rs. 1 million, but pays only 2% when your balance falls below that amount.
You initially deposit Rs. 1 million.
A few weeks later, you withdraw Rs. 100,000 to pay an unexpected expense.
Your remaining balance is Rs. 900,000.
If the account’s published tiers apply to the entire qualifying balance, your annual rate could drop from 7.5% to 2% while you’re in the lower tier.
At a constant balance and rate, the illustrative annual gross interest would change from Rs. 75,000 on Rs. 1 million at 7.5% to Rs. 18,000 on Rs. 900,000 at 2%.
That’s a substantial difference.
Some accounts can also impose fees if you don’t meet their monthly average-balance requirements.
For this reason, don’t deposit every rupee you have into an account whose attractive interest rate depends on maintaining an amount you’re likely to withdraw.
Keep enough accessible money separately for your immediate expenses and financial emergencies.
Money Market Account vs Fixed Deposit: Which Should You Choose?
A money market account and a fixed deposit serve different purposes.
| Feature | Money Market Account | Fixed Deposit |
|---|---|---|
| Interest rate | Usually variable | Usually fixed for the agreed term |
| Access to money | Generally flexible | Early withdrawal subject to bank terms |
| Interest calculation | Often daily | Depends on deposit product |
| Interest credit | Commonly monthly | Monthly, at maturity or as agreed |
| Minimum deposit | Often relatively high | Varies considerably by bank |
| Main consideration | Balance thresholds and rate changes | Lock-in period and early-withdrawal terms |
Suppose you have Rs. 1 million that you won’t need for the next twelve months.
A one-year fixed deposit offering an illustrative 10% annual rate would produce Rs. 100,000 in gross interest at maturity, assuming simple interest.
A money market account maintaining a constant illustrative 7.5% rate would generate Rs. 75,000 in gross interest before any compounding.
That’s a Rs. 25,000 difference before tax.
However, the fixed deposit provides a contractual rate for the agreed term, while the money market rate could rise or fall during the year.
And if you unexpectedly need to withdraw the entire amount after two months, the fixed deposit’s early-withdrawal conditions could become important.
You can compare fixed-deposit returns using Peak Lanka’s Sri Lanka Fixed Deposit Calculator.
For a discussion of longer-term investment considerations, also read Why Fixed Deposits May Be a Poor Long-Term Investment Once You Have an Emergency Fund in Sri Lanka.
Are Money Market Accounts Safe in Sri Lanka?
Bank money market savings accounts are deposits with the institution offering the product.
However, keeping your money in a licensed bank doesn’t mean every rupee is guaranteed against institutional failure.
Sri Lanka’s Deposit Insurance Scheme provides eligible depositors with coverage of up to Rs. 1.1 million per depositor, per member institution.
The limit applies to the depositor’s combined eligible deposits at the institution, including applicable accrued interest—not separately to every account.
For example, if you have Rs. 1 million in a money market account and Rs. 500,000 in a fixed deposit at the same bank, your combined deposit exposure is Rs. 1.5 million.
The current statutory coverage limit is still Rs. 1.1 million, subject to the scheme’s terms.
If you have substantially more money to deposit, consider your exposure across different licensed institutions instead of focusing entirely on the highest advertised rate.
You can read the Central Bank of Sri Lanka’s official deposit insurance information.
Remember that deposit insurance doesn’t guarantee immediate access to all your money if a bank experiences serious financial difficulties.
What About the 10% Tax on Interest?
Interest earned from Sri Lankan bank deposits is generally subject to 10% Advance Income Tax (AIT), subject to the applicable rules and exemptions.
However, certain resident individuals whose total assessable income, including interest income, does not exceed Rs. 1.8 million for the relevant year of assessment may qualify to submit an official self-declaration to avoid the deduction.
The Inland Revenue Department’s March 2026 notice explains the self-declaration process for the 2026/27 year of assessment and subsequent years.
Your actual eligibility depends on your total income, not merely the interest earned from one bank account.
If you maintain accounts with multiple institutions, check the declaration requirements applicable to each institution.
Read the IRD’s official self-declaration guidance before submitting a declaration.
Don’t assume that the 10% deducted from your interest necessarily represents your final personal income-tax liability.
Can You Use a Money Market Account for Emergency Savings?
A money market account may be useful for part of your emergency fund, particularly if you can comfortably maintain the qualifying balance.
But liquidity and interest eligibility aren’t exactly the same thing.
For example, if your emergency savings total Rs. 600,000, placing the entire amount in an account requiring Rs. 1 million to qualify for its advertised rate wouldn’t necessarily make sense.
Likewise, if you have exactly Rs. 1 million in an account and an unexpected expense forces you to withdraw Rs. 150,000, your remaining balance might fall into a much lower interest tier.
A practical approach is to maintain a separate account for immediate expenses and evaluate money market accounts for savings you expect to keep relatively stable.
Before deciding, check how quickly you can transfer or withdraw large amounts, whether your chosen account provides a debit card and what transaction limits apply.
How to Choose an Account Based on Your Savings
If you’re comparing money market accounts, start with the amount you actually expect to maintain, rather than the highest advertised interest rate.
If you have Rs. 100,000–500,000: Examine products with lower opening and qualifying-balance requirements. A regular high-interest savings account may also deserve consideration.
If you have Rs. 500,000–1 million: Compare the specific rates available in this balance range. Don’t assume that a bank advertising 7.5% will pay that rate on Rs. 500,000.
If you have Rs. 1–2 million: More accounts become eligible for their higher interest tiers. Compare variable rates, minimum-average-balance rules and withdrawal access.
If you have several million rupees: Include deposit insurance, diversification, fixed deposits and other regulated alternatives in your assessment. The highest published bank rate shouldn’t be your only consideration.
Whatever your balance, check account charges, digital banking convenience, access to branches and the bank’s current product terms.
Even a small rate difference can matter over time, but the convenience of accessing your money and the conditions required to earn interest also have financial value.
So, Are Money Market Accounts Worth Considering?
If you maintain a substantial amount of money in an ordinary savings account, a bank money market account could offer a way to earn additional interest while retaining relatively flexible access to your savings.
But three details can change the entire calculation: your minimum qualifying balance, the current interest rate and how often you expect to withdraw money.
Don’t choose an account solely because a bank advertises a rate of 7.5% or 8%.
Find out whether that rate applies to your actual balance, whether the bank can change it weekly and whether fees apply if your balance decreases.
Then compare the expected after-tax return against an ordinary savings account or fixed deposit that suits your financial needs.
The important question isn’t which bank advertises the highest money market rate. It’s which account’s actual terms fit the amount you can maintain and when you’ll need access to your money.
Do you currently keep your savings in a regular savings account, a money market account or a fixed deposit? And how important is the ability to withdraw your money without breaking a fixed deposit?
Research date: 25 September 2026. All interest rates are nominal annual rates before tax, unless otherwise indicated. Published rates and terms can change, and some bank pages have older revision dates or conflicting information. Confirm current rates, minimum balances, fees and eligibility directly with the financial institution before depositing. This article provides general financial information, not personalised financial advice.
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