Money in Banks - talk about deposits and interest rates

[Gambit]

Hey guys,
I heard that some banks here are offering 15-16% interest rates in money market placements. Is this true? Which banks are these? How much should we invest? and more importantly, is it safe?

[KuyaDanny]

Those were the rates for the Cash Management Bills (CMB) sold by the Philippine Treasury several weeks ago. CMBs are not always available. In fact, they're not available today.

Today's placement rates were hovering around the 12-14 range (gross of taxes, P1.0 million and up investment).

[lupuS]

15% (gross) was the best rate (30-90 days) offered by both UCPB and Security this morning. Other major banks were paying less.

Best rate usually applies to placements over P1.0 million.

[ng@k]

Sa tingin nyo anong bangko ang pinakamaganda magservice? may pinakamataas na interest?

[Ms.U]

pag magta-time deposit ba ko do i have to open another bank acct. for that?

for ex. i'd go for a time deposit acct., pera ko is 2000 US, how much wld. it profit for a yr?

my acct. is at PNB.

thanks peeps!:)

[KuyaDanny]

A time deposit is an account. You don't need to open a savings or current account along with it, if that is what you are asking.

I don't know what rate PNB will pay you, but interest rates for 360-day TDs range from 3.0-6.0% per annum, depending on which bank you talk to. These rates are subject to 7.5% withholding tax.

[BabyFATS]

KuyaDanny, tanong ko din...

Do you think it would be wiser to divide the money and (time) deposit in different banks?
Would it earn less? Mas mababa ba yung rate pag ganon?

[KuyaDanny]

In general, the bigger your balance, the higher your rate.

BUT

Banks tend to set their rates in tiers, e g:

P1-P999 2%
P1000-P4999 2.25%
P5000-P9999 2.5%
P10000-P24999 2.75%

and so on.

So if your total balance amounts to P4000, for example, it might not matter if you placed it in one bank or two. You must go through the numbers.

There is also another important consideration, and that is PDIC insurance. Every depositor is covered by PDIC for up to P100,000. So if this coverage is important to you, and your money is more than P100,000 it might make sense to keep at most P100,000 in any one bank.

[oyii]

anong bank ang pinakamataas ang interest pero secured naman ang money mo? let's say i have a 100K san ko sya dapat ilagay..

[oyii]

ah clarification sa previous post ko.. INTEREST FOR TIME DEPOSIT po ang kailangan ko.. :) thanks..

[balanuS]

Pinakamataas ang interest sa mga rural bank. Kung P100,000 lang naman ilalagay mo secured yan dahil protektado ng PDIC kahit saang bangko.

[simonesez]

Originally posted by Ms.U
pag magta-time deposit ba ko do i have to open another bank acct. for that?

for ex. i'd go for a time deposit acct., pera ko is 2000 US, how much wld. it profit for a yr?

my acct. is at PNB.

thanks peeps!:)

I recently opened a time deposit account at PNB. Yes it's another account aside from your regular savings account or what have you and they give you a separate booklet for it.

I don't have the exact rates but I can tell you that for P100K time deposited for say six months you get a 10.5% interest. The interest goes to your savings account and the original amount is "rolled" again on maturity if you decide not to touch it. They also give you 8.5% interest for the same amount range but the interest is entered in your time deposit account. For exact interest rates, etc. you can get an actual list at your nearest branch.

[Ms.U]

thank you sa mga replies nyo.

Simonsez, pwede kayang ipa-open ko sa mom ko yung time deposits acct., kase wala ako dyan sa Pinas eh.

meron pa kong isang acct, sa Maybank naman, anybody na may alam kung mas mataas ang interest nila dun compared to PNB?

salamat ulit.
:)

[BabyFATS]

I'm not sure pero... malamang under her name, not yours, since they'd need signatures and all. :)

[PUGSLEY]

Originally posted by Ms.U
pag magta-time deposit ba ko do i have to open another bank acct. for that?

for ex. i'd go for a time deposit acct., pera ko is 2000 US, how much wld. it profit for a yr?

my acct. is at PNB.

thanks peeps!:)

Used to work with PNB. :D

To compute interes for 1 month its:
PxRxT/360 x witholding tax

As of April 10, 2001 the FCD rate is 5%, for Peso it was 9.5%

[jdelac80]

Originally posted by PUGSLY


Used to work with PNB. :D

To compute interes for 1 month its:
PxRxT/360 x witholding tax

As of April 10, 2001 the FCD rate is 5%, for Peso it was 9.5%

Using that formula:
P is principal (the money you deposited)
R is rate (the per annum interest rate)
T is term (no. of days deposited)

If P is 100,000
R is 9.5%
T is 30 days
use .8 for the withholding tax factor of 20%

(100000 x .095 x 30 x .8) / 360 = 633.33 interest earned for the month

Plantersbank has pretty good interest rates and they seem stable enough. It's best to shop around for best rates though.

[PUGSLEY]

Originally posted by jdelac80


Using that formula:
P is principal (the money you deposited)
R is rate (the per annum interest rate)
T is term (no. of days deposited)

If P is 100,000
R is 9.5%
T is 30 days
use .8 for the withholding tax factor of 20%

(100000 x .095 x 30 x .8) / 360 = 633.33 interest earned for the month

Plantersbank has pretty good interest rates and they seem stable enough. It's best to shop around for best rates though.

Right you are there, except with the witholding tax rate.

Dollar rate witholding tax is 7.5%
Peso witholding tax is 20%

:D

[Lianne Ysabel]

There are some other "products" that banks sell aside from time deposits that will give you a higher yield. However, your money is not insured with PDIC...meaning kapag bumagsak ang bangko, bye bye din sa pera mo. Higher yield, higher risk. But you can always get a good and stable bank.

I know banco de oro offers good rates for their dollar account. Meron silang tinatawag na SMDF whichi is different from their time deposits. Para siyang "stocks".

If you get the time, go to a bank, sit down with the personnel in-charge and you can learn a lot. Iba na siyempre kapag chummy kayo nung bank personnel. Special treatment ka pa!

[dekra3]

I have a time deposit at UCPB and for me they give the biggest interest among the other banks.

[Ms.U]

Originally posted by Lianne Ysabel
There are some other "products" that banks sell aside from time deposits that will give you a higher yield. However, your money is not insured with PDIC...meaning kapag bumagsak ang bangko, bye bye din sa pera mo. Higher yield, higher risk. But you can always get a good and stable bank.

I know banco de oro offers good rates for their dollar account. Meron silang tinatawag na SMDF whichi is different from their time deposits. Para siyang "stocks".

If you get the time, go to a bank, sit down with the personnel in-charge and you can learn a lot. Iba na siyempre kapag chummy kayo nung bank personnel. Special treatment ka pa!

so what does SMDF means? I don't really have a chance to go to a bank, siguro sa mom ko na lang kase nga wala ako dyan sa pinas kaya lang gusto ko syempre under my name bale i have an authorization letter sa PNB and MAybank nga, so if ever mas maganda ang offer sa Banco de oro I'll ask her to open another pero siguro joint kami, kase di yata pwede pag wala ako. Coul do explain further abt sa SMDF?

[Ms.U]

Originally posted by Lianne Ysabel
There are some other "products" that banks sell aside from time deposits that will give you a higher yield. However, your money is not insured with PDIC...meaning kapag bumagsak ang bangko, bye bye din sa pera mo. Higher yield, higher risk. But you can always get a good and stable bank.

I know banco de oro offers good rates for their dollar account. Meron silang tinatawag na SMDF whichi is different from their time deposits. Para siyang "stocks".

If you get the time, go to a bank, sit down with the personnel in-charge and you can learn a lot. Iba na siyempre kapag chummy kayo nung bank personnel. Special treatment ka pa!

so what does SMDF means? I don't really have a chance to go to a bank, siguro sa mom ko na lang kase nga wala ako dyan sa pinas kaya lang gusto ko syempre under my name bale i have an authorization letter sa PNB and MAybank nga, so if ever mas maganda ang offer sa Banco de oro I'll ask her to open another pero siguro joint kami, kase di yata pwede pag wala ako. Coul do explain further abt sa SMDF?
thanks!:)

[Ms.U]

Originally posted by dekra3
I have a time deposit at UCPB and for me they give the biggest interest among the other banks.

how big? i mean for ex nga i have 2000US how big wld. the interest be after a yr.?
thanks:)

[KuyaDanny]

Rate at UCPB this morning was 3.625%. Your net interest earnings after one year at this rate would be $67.06

[RitaB]

Remember a few years ago, when almost every bank offered to "Double your money in 5 years"?

Does anyone know if there are banks that still offer this? =)

[KuyaDanny]

I remember at least PNB, Citibank, Union, and BPI did, once upon a time. So I asked them today and the answer is NO.

The effective interest rate on such a package is 14.87% per annum. That is too expensive these days. The best one can do today, I think, is 9-10%. At 10%, your money would double in 8 years.

[RitaB]

Thanks, Kuya Danny.

I heard Planters Bank as a program for 5 years and it's ALMOST double.

Anyway, I think there are some premium funds that let you earn more than 10% (for a 100K minimum) -- but it's different from a time deposit plan.

Anybody else have any suggestions for banks that are offering interesting gimiks? =)

[Krakista]

To determine how long your money will double, simply divide 72 by the net interest rate.

[hansel]

any updates on current peso TD rates?

:)

[jdelac80]

Originally posted by Ms.U


so what does SMDF means? :)

Super-Mega-Duper Fund? :D

[almightyge]

hi,

am just here helping my girlfriend who is looking for clients..

she works at HSBC and part of their services are as follows:
1.) savings, current and time deposits
2.) homeloans
3.) mutual funds..

you should ask her about the rates though.. coz i dont know anything about them.. all i know they have the best or should i say lowest interest rate in home loans!

you may call 8305119 ( her direct line )

[the_ace]

Hello Pexer's,

I am planning to Time Deposit my money in the Bank. Any suggestions as to which banks has the highest interest rates per annum? Of course the bank should also be stable.

[diwata28]

east-west bank offers 8.5% in TD

[KuyaDanny]

Tip:

If your deposit is P100,000 or less, it is insured by the PDIC. Check to see that the bank is a member of the PDIC (most are). That should take care of the safety/stability issue, at least for the first P100,000.

[nance]

Many local banks now post their time deposit rates on their web sites. Here's a list of the sites:

http://www.inq7.net/specialfeatures/onlinebanking/industry/ind_01.htm

Also, DFNN.com (now Inq7Money) has a comparison table for peso TD rates (http://www.dfnn.com/banking/td_rates.asp), but some of the entries are not updated.

Your best bet is to go to the branches yourself and ask for their latest TD rates. Not only will you get the most updated figures, you'll also get a sampling of the kind of customer service that each bank (or branch) offers. That, to me, is almost as important as high interest rates.

[lupuS]

New products from iBank brought to my attention today

iTime Plus - 5-year time deposit; current interest rate 13.33% pa payable at maturity. Interest earnings are not compounded before maturity, and are not withdrawable until maturity. If the deposit is held for five years, interest earnings are tax free. Minimum deposit P60,000.

iTime Prime - 5-year time deposit; current interest rate 9.5% pa payable in 30 days. Interest rate is repriced every 30, 60, or 90 days at the investor's option. Rate is based on the higher of 91-day T-Bill or "top board rate". Interest is withdrawable anytime. If the deposit is held for five years, interest earnings are tax free. Minimum deposit P100,000.

[jdelac80]

Originally posted by lupuS
New products from iBank brought to my attention today

iTime Plus - 5-year time deposit; current interest rate 13.33% pa payable at maturity. Interest earnings are not compounded before maturity, and are not withdrawable until maturity. If the deposit is held for five years, interest earnings are tax free. Minimum deposit P60,000.

iTime Prime - 5-year time deposit; current interest rate 9.5% pa payable in 30 days. Interest rate is repriced every 30, 60, or 90 days at the investor's option. Rate is based on the higher of 91-day T-Bill or "top board rate". Interest is withdrawable anytime. If the deposit is held for five years, interest earnings are tax free. Minimum deposit P100,000.

Plantersbank has similar/comparable products but the minimum deposit required is lower yata.

[lupuS]

Re: iTime Plus / iTime Prime

I forgot to mention that the product includes accident insurance coverage (written by Beneficial Life) equivalent to the principal amount up to a maximum of P5.0 million, for no extra charge.

[burman]

How does Time Deposit work ? Will you make a profit out of it ? Give me some tips how to invest my money through time deposit ?

[NoisyCricket]

Which bank gives the highest dollar deposit rates, and are there banks that can insure your dollar savings? :)

In Citibank, ur money safe and sound, kaso last I heard, their rate was 0.93% interest. Yikes! :eek:

KD also suggested the Philam Dollar Mutual Fund thingee (pwede rin) but for less risk (or as much risk as a savings account nalang), what banks do you guys suggest? :)

[summit012]

I heard Philtrust gives highers interest rates.

[NoisyCricket]

thanks! Would you know how much? :)

[summit012]

Originally posted by NoisyCricket
thanks! Would you know how much? :)


nope, ask the branch manager. if u have much, consider putting it outside of rp :)

[NoisyCricket]

Oo nga ano! Cool! How do I do dat? :) You can get higher rates ba abroad, but don't you have to pay taxes or something like that? :D

[summit012]

Originally posted by NoisyCricket
Oo nga ano! Cool! How do I do dat? :) You can get higher rates ba abroad, but don't you have to pay taxes or something like that? :D



think as if you r a politician. y s it that they put their "hard earned" money outside of rp? there must be something wrong with our banking system or the banking system of other country is lot better than their counterpart here or they don't trust our banking system.....lots of reasons.

Try asking a banker, let me know. ok?

[Superunknown]

pa-post naman kung sino may alam :p

[lupuS]

I got this offer from a telemarketer today.

Limited time only, and available only to selected clients (although I am not currently their customer).
Standard Chartered Bank
1 year time deposit
Rate 8.00% pa (gross, subject to 20% withholding tax)
Minimum placement: P200,000
Interest paid monthly
Bank pays for doc stamps

This is above market, and quite high by SCB's standards.

[Carpe_Diem_Z]

*bump*

[argonaut83b]

Okay mag save sa bank, for short-term and medium term purposes. Kaya lang, consider the following:

1. If you want higher rate for your money, you got to put in more.

2. Walang kamatayang, withholding tax. The more your money earns, the more tax.

3. PDIC na P100K. E di ba you want higher rate, kaya you put in more, ex. P1M, tapos pag may nangyaring masama sa banko, what you get is, korek ka dyan, P100,000. Is that fair?

Paano naman iyong ordinary Pinoy who can save as much P1,000 a month lang. Wala na be silang karapatan mag earn ng 8-10% per annum?

Syempre meron! And there are a lot of savings programs out there na bukod sa it earns 8-10% per annum na, tax free pa, may libre pang insurance. And what's even better, is that the product provider has been doing business in the Philippines for more than 50 years already, and leads the financial services industry today. Talk about stability. :-)

Gusto nyo bang malaman kung ano itong mga savings program na to?

Just email me at argonaut83b@hotmail.com

[thehitman]

Hanep sa plugging!!! :wow:

:cool:

[Wittygurl]

AMW SLAH Bank [Checkspell]

Their annual interest is 18%.. you can get dividends every 6 months. So if you have 100k, you'll earn 9k every half of the year.

Last year, the annual interest is 20%.. Sayang nga nagdecrease...

[thehitman]

AMW SLAH? Hindi ba ito yung bank ng mga military personnel?

:cool:

[Wittygurl]

Originally posted by thehitman
AMW SLAH? Hindi ba ito yung bank ng mga military personnel?

:cool:

yep :)

[lupuS]

Pwede bang maglagay ng pera diyan kahit wala kang kamag-anak na sundalo?

[Wittygurl]

Originally posted by lupuS
Pwede bang maglagay ng pera diyan kahit wala kang kamag-anak na sundalo?

I don't think so..

[Barok5]

To the bankers in this forum,

Do any of you know any bank that is offering these LTNTDs? I am interested in investing in one.

Read about it in the archives of thetrustguru.com.

http://www.thetrustguru.com/today111201.htm

[Bea19]

Ilang years ba ang plan mo as the term for your investment?

[Barok5]

Hi Bea19,

Seven to 10 years. But any decision to invest would depend on the rates. Does Philam Savings Bank have such time deposits?

[franklin sq]

Originally posted by Bea19
Ilang years ba ang plan mo as the term for your investment?

5 years

[Bea19]

Ahhh, pag ganyan katagal I would suggest funds na may stocks na ksma since long term naman ang investment horizon mo. Sayang naman kse pag tinime depsoti mo lang e.Ma lolock in ka sa ibibgay nilang interest rate although pag ganyang more than 5 years ang term exempted ka sa witholding tax, pero di naman liquid ang money mo.

[Barok5]

Hi Bea,

Pero sa US ang historical rate of return ng stocks eh nasa 10%. Eh kung ang bonds at time deposits eh nag-offer ng same rate tapos may PDIC at sovereign guarantee pa eh di mas safer pa rin sila.

Problema kasi sa mutual funds eh yung high risk of losing your principal. Sa time deposit at gov't bonds mas mababa yung risk na ito.

[Bea19]

BArok5...it depends sa portfolio ng pag iinvestan mong mutual fund. Kse before you invest titingnan mo kung san nila ilalagay *** investment mo para maibigay nila *** ginarantee nilang interest rate. Kaya nga merong mga fixed-income funds na itinatapat sa time deposits e. The problem with PDIC is depende pa sa naging problem sa bank kung maibabalik ang money mo. Ang prob din kse sa bank spread-based *** system e. Hindi mo alam kung kanino nila ipinapahiram *** money mo.

[sweetie_sacha]

i suggest you put it in a trust placement instead of a regular bank placement. tutal 5 years mo din naman iple place eh. bigger return. just contact any bank's trust department.

for banco de oro: 6366060 loc 546

[Bea19]

ANg Trust fund naman para din syang mutual fund but instead of getting shares you get units of participation atska you don't know kung san nila iinvest *** money mo. kumabaga bahala na sila.

[Barok5]

Hi Sweetie_sacha,

If I can get a fixed rate of 10.76% for a 7-year time deposit placement today, can this be outperformed by a trust placement with Banco de Oro?

Hi Bea19,

I think what you are referring to are common trust funds. I am not sure what Sweetie_sacha is offering, but I know from Erap's impeachment trial that there are other types of trust placements that do not have units of participation. It is also not true that investors have no knowledge of where the bank's trust department lends his/her money. As a matter of fact, it is the investor who decides where his money should be invested. Jose Velarde, for instance, ordered EquitablePCI's trust dept to lend his money to William Gatchalian.

[sweetie_sacha]

hi, barok

actually, i'm not from the trust department. just call and ask them.

regards,
sacha

[treefingers]

which of those banks has the best deal for a Php200,000 time-deposit account?

thanks!

[zimdude]

Open 2 100,00 accounts, to fit within PDIC insurance... just in case something happens. (Not likely with Metrobank.)

[sara falls]

why not try BPI? :*)

[zimdude]

conservative banks == lower interest rates

[raged]

Originally posted by sara falls
why not try BPI? :*)

yeah why not?

[treefingers]

so...u suggest bpi offers the best benefit for this amount? :)

[KuyaDanny]

Originally posted by zimdude
Open 2 100,00 accounts, to fit within PDIC insurance... just in case something happens. (Not likely with Metrobank.)

This might not be necessary for long, if the bill raising the ceiling to P250,000 becomes law.

[treefingers]

Open 2 100,00 accounts, to fit within PDIC insurance... just in case something happens. (Not likely with Metrobank.)
------------------------------------------------------------------------what's the benefit of opening 2 separate 100K accounts than just open a single 200K account?thanks! :)



This might not be necessary for long, if the bill raising the ceiling to P250,000 becomes law.

--can u pls explain, danny? thanks! :confused:

[sweet_7326]

why not put it in a trust placement where you will have a higher yield?

[singaporesling]

Why not try Planter's Bank? They have this promo called High 5.

Iyon nga lang you have to keep your money with them for 5 years at 9.5% interest.

[KuyaDanny]

Originally posted by treefingers
--can u pls explain, danny? thanks! :confused:

Under current law, PDIC insurance covers all deposits up to P100,000 per depositor. So if you had P200,000 in a time deposit and the bank were closed by the Monetary Board, only P100,000 would be protected. But if you split the money and made two deposits (one in your name and another in the name of someone you can trust and who does not himself have any other deposits with the bank), that would count as TWO depositors, and therefore P200,000 would be protected.

There is a bill pending in our legislature which will raise this insurance coverage to P250,000. If that bill becomes law, this splitting business will not be necessary.

[Bea19]

How long ba *** duration ng plan mong time deposit?

[spicyham]

Mine is at Metrobank, 5.9% net per year, renewable every 30 days.

[treefingers]

How long ba *** duration ng plan mong time deposit?
--------------------

not sure with the duration yet. it's retirement lump-sum money.

do u have a table of some sort as to the banks deposit duration and corresponding interest rates? i suppose short terms = lower rate.

thanks!

there's no plantersbank branh in our locality.


:)

[foxman74]

Meron pa bang ganito sa philippines? Aling mga banks at alin dito ang pinaka okay?

[BingoWingo]

meron pa, email me at architect_@hotmail.com, ill send the information there.

[thehitman]

why not just post it here?

:cool:

[Kirsten_v]

yup meron...UCPB offered this scheme late last year --> i heard hanggang May na lang 'to this year --> not sure though...contact their main office in makati avenue...

minimum is P100K and maturity date is after 6.6 years --> try it, ok sya as in! :)

[zimdude]

UCBP! Of course, they need all the cash they can get...

[BingoWingo]

Originally posted by thehitman
why not just post it here?

:cool:

its in the form of an attachment, if I post it here, de kakasya ang space ng pinoyexchange.
and I dont think, the moderators would agree to that.

[singaporesling]

Planter's Bank's HIGH 5 product. Minimum of 30K ang placemtn for 5 years TD at 9.5% interest monthly credited sa account mo.

[treefingers]

meron kaya sa mga mentioned banks nag o-offer ng interest higher than inflation rate?

sweet_7326:

pardon me-- whats a trust placement? how is it compared to time deps in ters of interest and security?

:)

[foxman74]

Salamat sa mga nagreply. Bingo, paki e-mail naman ang info sa foxman74@hotmail.com. Thank you very much.

[zimdude]

9.5% a month? What's the catch?

[KuyaDanny]

No, sir. That would be 9.5% per annum, but paid monthly,

[fossil7]

ang east west had it up to last year only... ngayon, wala na... :D

[zimdude]

now that's realistic. :)

[sweet_7326]

treefingers - trust placements are investment type placement.

sample ko lang:

i have a Smart Money Fund (this is a Banco De Oro common trust fund product).


as of 2/23
a 10k peso is approximately equivalent to: 2.855 units.

1 unit = 3501.6450

to compute your increase, you can check their website (www.bdo.com.ph/nav.asp). usually increases at about 1peso per day.

just multiply the NAV with your units. so kung tomorrow (SAMPLE langTO!!! ) ang NAV is 3,502.xxx eh di multiply mo lang yung number of units mo with the current NAV.

parang ang labo ng explanation ko. hehehe


anyway, i also placed my retirement fund (from my previous company) in a Smart Money placement :)

[Zeratul]

MERON!!!!

MULTI-TEL!!!! Tol ilagay mo ang life savings mo kina Rose Baladjay! DOBOL YOUR MONEY TALAGA!!!! :D :D

Moral: Huwag magpaloko sa mga "new business opportunities" at double your money cash instruments. Deal only with REPUTABLE people and financial institutions. :) :)

[KuyaDanny]

Originally posted by Kirsten_v
UCPB offered this scheme late last year

These products are currently available from UCPB:

1) 6x6
- Double your money in 6 years and 6 months (10.71% pa effective)
- Minimum placement P100,000 plus increments of P10,000
- PDIC cover, subject to ceilings
- No withholding tax if held until maturity
- No doc stamps
- All interest earnings payable at maturity only.

2) 60/100
- Every P60,000 placement matures at P100,000 after 5 years and 1 month (10.09% pa effective)
- Minimum placement P60,000 plus increments of P10,000
- PDIC cover, subject to ceilings
- No withholding tax if held until maturity
- No doc stamps
- All interest earnings payable at maturity only.

[foxman74]

Thanks a bunch.

[byby]

this is interesting stuff..

[treefingers]

i was told it has higher yield than time deposit. mas mataas ba yug interest dito than inflation rate?

[treefingers]

teehee...sorry mejo di ko makuha *** explanation. :glee:

..but anyway, mas ok ba talaga to than time dep? in terms of yield. meron di kayang ganito ang ibang mga banko?

[CaRaMBa]

Another option is to buy dollars, if you feel that it's still going to go up. :)

[KuyaDanny]

It is money "entrusted" to a trust company, or the trust department of a bank. It is technically not a deposit. The trust department then invests the money for you, and depending on the assets invested in, may have a higher yield than a time deposit.

Please note that a time deposit promises to give you back your principal plus a predetermined amount of interest at maturity. A trust placement does not usually make that kind of promise. In fact they don't usually tell you how much your money will make until it's time to pay you. If all or part of your money is invested in something like stocks, and if you decide to "withdraw" at the "wrong" time, your yield might even be negative.

[ako si..]

in chinabank, this is one of our trust products.. if you want you can inquire in our trust group.. trunkline:885-5555 tapos paconnect ka na lang sa trust department :)

eto rin site namin: www.chinabank.com.ph
Common Trust Fund (CTF)

Features:

CTF is a fund operated shere small to medium-sized trust funds are pooled together for the collective investments in fixed-income securities, government securities and prime loans/mortgages.
CTF can be classified as either:
Personal/Individual/Joint Account
Corporation
Investments accepted are not insured with the Philippine Deposit Insurance System (PCID)
For individual trustors, trust fee is collected monthly based on the book value of the tust fund, in addition to the out-of-pocket expenses, consel's fees and other expenses computed according to the schedule on the next page:

Selling Points
Free trustor of the burden of financial management
Pooling of funds allows clients to invest in high-priced and high-return and high-return of investments for relatively low placement amounts.
Provides fund security, safety and stability through investment diversification.

or you may be interested in this..

5-year Money L.i.f.t.

The 5-year Money L.I.F.T. is a combination of a high yield long-term deposit account and a savings account or a checking account to provide access to the investment earnings. Prospective clients will be enjoined to open this new product together with either a China Check Plus or Savings Account to which interest earned shall be credited and thus providing a liquidity window even for a 5-year and 1 day term placement.

The 5-year Money L.I.F.T. earns tax-free quarterly re-priced tiered interest based on the average 91-day Treasury Bill rate.

Features

Tenor is 5 years and 1 day
For individuals only
Minimum deposit is P50,000.00. Increments should be in multiples of P1,000.00 ONLY (e.g. P53,000.00, P76,000.00, P124,000.00, etc.)
Interest rate shall be re-priced quarterly, based on the known weekly average 91-day Treasury Bill rate auction that immediately precedes the payment of interest.
In case of auction rejection, the previous auction result shall apply as the bank's regular certificate of time deposit rate, whichever is higher.
Interest shall automatically be credited quarterly to either China Check Plus or a Savings Account.
Interest is guaranteed by the Bank.
Pre-termination is allowed but the account will be subject to final tax for the account of the Bank.
Deposit of up to P100,000.00 is insured by PDIC
Benefits

The product provides a tax shield, provided the account is maintained for 5 years and 1 day.
A liquidity window is made available as clients are given access to interests through their China Check Plus os Savings Account

[ako si..]

tama si caramba.. sa bank namin 56.65 na ang dollar.. wny not open a time deposit in dollar?

yun nga lang hanap ka ng mabibilhan ng dollars kse pinagbabawal ng BSP na you'll buy and deposit dollars in the same bank

we are even joking na dapat lahat kme sa bank mag-open na ng dollar account kse pag si FPJ (sori sa mga maka-FPJ) daw ang nanalo lalo na tataas ang dollar.. :) so by that time we could close our dollar accounts and sell the dollars.. malaki rin kita :)

[treefingers]

uhmm...o nga ano... although volatile parin *** US$. ma consider nga yan. thanks! :)

[Renee]

Mutual funds can also be an alternative to time deposits. If you're looking for potentially higher interest income :)

[CaRaMBa]

Renee is right, but consider the risk also.

For the dollars, there are some banks that require only a minimum of P$1,000 to open a time deposit. But if you wanna do this, I suggest you do it soon 'cause it might go up. But then again, it might go back to P55. If you can ask a friend who understands the dynamics of forex, that would be great. :)

Good luck!

[the_BuGs]

Originally posted by CaRaMBa
Another option is to buy dollars, if you feel that it's still going to go up. :)

hmmm mas ok Euro ang bibilhin mo....

[CaRaMBa]

The Bugs - actually, that's true. But it's easier to buy dollars. Also, not a lot of banks have Euro savings accounts, and the requirements for time deposits are very high.

Yup, Euro is another option. A really good one.

[treefingers]

im considering all your suggestions guys.. thanks!

[kerb]

i heard academic plan daw (even w/o a kid to use it) = higher yield. sabi nila kahit within 5 yrs mas mataas sa makukuha mo compared to TD.

[KuyaDanny]

Our good friend and new father mac_bolan00 recently went shopping for educational plans and calculated the yield, which he found quite low. Visit this thread over at Mommy Academy (http://www.pinoyexchange.com/forums/showthread.php?s=&threadid=131251).

[sweet_7326]

treefingers... sorry at napaka labo ng explanation ko :) PM mo ako, i'll try to call you and explain in details. hehe

[KuyaDanny]

treefingers, your question was also answered in another thread you created:

what's TRUST PLACEMENT? (http://www.pinoyexchange.com/forums/showthread.php?s=&threadid=161526)

It is easier for everyone if all the answers to the same question are in one place. Do you want me to merge your other thread with this?

[nailbiter]

Which banks still offer Passbook with ATM savings accounts?

[sweet_7326]

here's for banco de oro:

INVESTMENT FUNDS

Premium Growth Fund
This is a tax-free peso-denominated common trust fund designed for individuals with a longer - term investment outlook. The fund provides higher returns than the regular investment instruments. Read more...

Premium Income Fund
This is a tax-free peso-denominated common trust fund ideal for individuals who want a regular income stream from their investment. Read more...

Premium Monthly Earner
This is a tax-free, five year, fixed rate peso time deposit. Minimum investment amount is P100,000.00. Read more...

Smart Money Fund
A common trust fund designed for small investors seeking a sound, high yielding and liquid portfolio. These investment goals are met by pooling the funds of investors for investments in diversified fixed income securities that an ordinary investor cannot tap alone. Minimum and subsequent investment is P10,000.

Smart Money Dollar Fund
This is a dollar-denominated common trust fund wherein funds are pooled and invested in high yielding fixed income securities like dollar-denominated government securities, time deposits, Euronotes, Euro commercial papers, Eurobonds and other similar securities. Minimum and subsequent investment is US$2,000.

Smart Money Dollar Fund Gold
This is a dollar-denominated common trust fund for high networth dollar investors. Minimum and subsequent investment is $10,000.

Smart Money Investment Fund
The fund is specially designed for medium-sized investors. Invested in diversified investment outlets. Minimum placement is P100,000.

Two-Year Dollar Fixed Rate Time Deposit
This is a two year fixed rate dollar denominated instrument that carries a higher yield than a regular time deposit. Read more...

CUSTOMIZED PORTFOLIO MANAGEMENT

Investment Advisory Services
Our team of seasoned investment managers will provide you with expert advice for your investments and financing needs.

Investment Management Agreements
Set the objectives, strategies and guidelines and let Banco de Oro's investment managers manage your funds for you. Ideal for busy people with limited time to manage their investments daily. Minimum investment is P3,000,000.

Wealth Planner
Banco de Oro’s Wealth Planner is a unique banking service. Doing your investments via BDO Wealth Planner will give you the opportunity of earning more than just directly placing your money in any other bank product since it can provide you Tax-Free returns. It can also be used as an estate planning tool which takes care of you and your loved ones’ present and future financial needs. Read more...

TRUST ADMINISTRATION

Capital Gains Tax Escrow Account
The Capital Gains Tax Escrow Account is an Escrow Arrangement wherein BDO-Trust acts as an intermediary between the Bureau of Internal Revenue (BIR) and a Seller/Transferor of property for the proper disposition of the amount held in escrow in accordance with Republic Act 8424 Section 24 (D)(2).

BDO-Trust, as the Escrow Agent, will see to it that the deposit in escrow, equivalent to the capital gains tax due from the sale of the Seller/Transferor's principal residence, will be released to the Seller/Transferor only when the condition of acquiring a new principal residence within the prescribed eighteen (18) month-period is met. Otherwise, the Escrow Agent will release the escrow amount to the BIR as payment of the Capital Gains Tax. While the Escrow Agent is holding custody of the funds, the funds will be invested in an interest bearing account that takes advantage of the best investment options available. Read more...

Custodian Services
As custodian, let Banco de Oro safe keep and preserve your property, such as important documents and valuables. BDO will keep all properties and items in custody, collect interest or dividend income, if any, and in due time return them upon the owner's order or instructions.

Escrow Agency Services
Banco de Oro oversees your deals from start to finish, the bank acts as an escrow agent to protect the interests of the contracting parties while conditions upon which their contract is contingent are being fulfilled. Avoid taking unnecessary risks. Call us now! Read more...

Living Trust
For those who want to preserve and earn from their properties and eventually distribute the properties to their beneficiaries, avail of the Banco de Oro Living Trust. It is a type of personal trust used as an initial step for estate planning which covers the administration, investment and disposition of your assets.

Trust Agreement
For individuals or corporations that cannot devote their full time in managing their investment portfolio, or those who wish to be assured that their properties will accrue to the benefit of their heirs and beneficiaries, Banco de Oro will act as trustee to manage and administer your properties (cash and securities).

[summit012]

Escrow Agency Services & Escrow Agency Services

can u give details on this? how much does the bank charge for this service?

[KuyaDanny]

Normally, an escrow agent is a "trusted party" who is hired by two parties who cannot trust each other.

Let's say A wants to buy a house B is selling. A doesn't want to pay B the money unless he is sure the papers (title, etc) can be transferred to his name. B doesn't want to release the papers unless he gets paid by A. Ordinarily, this might result in a stalemate and the house doesn't get sold.

So they hire a bank whom they both trust to act as the escrow agent. A hands over the money to the bank, and B hands over the papers. Someone (not necessarily the bank) takes care of registration and transfer and when all is done, the bank gives the papers to A and the money to B. If the transaction is not completed by a certain date, the escrow could expire and the bank returns everything to the original parties.

Fees are based on the amount and duration of the escrow.

[Bea19]

I still feel that mutual funds are in a way better. Mas minimal ang intial investment tska it's very liquid.

[ako si..]

to nailbiter.. sa china bank we don't offer a savings account with a passbook and atm at the same time but you could open it separately then you can link your passbook account to your atm account :)

[treefingers]

K.Danny: yeah, go merge them. :) thanks

im thinking to save in US dollars. im really not really for big return.

saking lang:
safety/security + interest thats higher than inflation = ok na!

magkano nga pala inflation rate natin ngayon?

[Kirsten_v]

tanong din po: san nga ba mas maganda i-invest ang US$s? thanks! :)

[wandawoman]

question po: regarding sa dollar saving accounts or dollar time deposit accts, are they still covered by PDIC?

[KuyaDanny]

Yes, up to P100,000 or in today's exchange rates, $1,775.41 per depositor. If you have dollars and pesos in the same bank, they will add up both accounts and cover only P100,000.

[Bea19]

For dollar investments, i would suggest our dollar bond fund. Minimum is $2000 then 1 yr ang term with a conservative projection of 5%net of taxes. Last year we performed 5.75% net.

[cloud7]

hey guys, any updates on what banks offer these days? say you have 100,000 pesos. thanks.

[gumacanian]

What are the best rates HSBC offer these days??
PNB say they have a 5 yr time deposit tax free...

[BabadSaComputer]

P100k? Why not invest in treasury bills? They offer better rates in a relatively short time frame. :D

[weasley]

for a 100k investment.. you could open a 30-day statement savings at CHINABANK.. it's their latest product.. you earn interest every 30days and you can add our investment with i think increments of 10k. the higher the principal amount. the hingher reward rate :)

[sweet_7326]

ndi ba volatile ang tbills ngayon?

[BabadSaComputer]

sweet_7326: Di masyado.... no volatility-inducing news recently.... tsaka mkt interest do not fluctuate the same extent as the stock mkt. :)

[franklin sq]

Originally posted by Bea19
Ahhh, pag ganyan katagal I would suggest funds na may stocks na ksma since long term naman ang investment horizon mo. Sayang naman kse pag tinime depsoti mo lang e.Ma lolock in ka sa ibibgay nilang interest rate although pag ganyang more than 5 years ang term exempted ka sa witholding tax, pero di naman liquid ang money mo.

thanks Bea,

Okey ba yun Honey Pot being sold by Metro dollar based daw?

[gumacanian]

Does anyone know details of HSBC 5 yr plus plans?

[gumacanian]

Anyone??I cant find details on their site.

[KuyaDanny]

HSBC in Manila?

All they could give me was a five year time deposit at 6.6% pa, interest payable monthly. Minimum amount is P1,000,000.

[thehitman]

Isn't that kinda low for an investment that big and a period that long?

:cool:

[KuyaDanny]

Yes, it is. But that's HSBC.

You can get 8.0%, same period and same amount, at PSBank.

[aajao]

how about EPCI's MoneyMax? do they still offer it? Its a five-year term deposit and you get the interests at a higher rate (than the normal peso time deposits) and as far as i can recall, the interests in MoneyMax are tax free to be credited monthly in its affiliate savings or checking account.

[KuyaDanny]

Originally posted by KuyaDanny
You can get 8.0%, same period and same amount, at PSBank.

I am mistaken. You can get 8.0%, for ONE YEAR and same amount, at PSBank.

[gumacanian]

5 years is a long time to put in the kind of money I want to deposit when all Im insured for is P100 k..
The reason I asked about HSBC is because of the low risk of losing it all.

[aticus]

PSBank is a great bank. It's the No. 1 Savings bank in the country, and it belongs to the Metrobank group, so it definitely will be stable.

Of course, I have to mention that my dad's working there, so I am biased to some degree. ;)

[jembo]

which bank(s) has the highest interest rates on time deposit? or which one has the best features/service? thanks

[elao2]

Note to the poster from the moderator:

This is a DISCUSSION thread. If you want to sell something, proceed to Classifieds.

- KuyaDanny

[bachelor_zone]

I want to put my 100k on time deposit for 1 year. What bank do you recommend that has a high interest rate? Thanks.

[charmedPrue]

PNB :)

but... if u have 100K, why not go for the money market instead..?

[bachelor_zone]

I dont want to play with my money. just want to put it bank and wait for the interest. this is for my emergency fund. I dont want to think that much. quite busy here.

[rains_delight]

If I were you I will place my money in a government bank like PNB or Landbank. Or better yet, invest that in money market or purchase t-bills.

[vinta18]

Money market is not like the stock market. Parang time deposit din yun, FYI.

[gumacanian]

What is the maximum amount of time you can lock it away for?
Ive heared on this forum that in some banks you can get as much as 10% PA in a 5 yr time deposit(TAX FREE)..But thats when its locked away for 5 yrs..

[bachelor_zone]

1 year only. I will renew it if satisfied with the result

[Carpe_Diem_Z]

I've researched this before. Compared BPI, Metrobank, RCBC, Landbank & Plantersbank. Plantersbank provides the highest interest rate both for dollar and peso TD. If you have a 5-year horizon, try to put it at Plantersbanks' 5-year High Earner, 9.5% interest NET or 11.875% gross, not sure if interest is credited monthly or quarterly to a separate account. Try to check with them as well. Please post if they are still offering this...

[Bea19]

try mo na lang sa bond fund namin 1 year lang yung period nya tapos 8-9% net ang ieearn ng fund mo. Very liquid sya since sinabi mo nga na emergency fund mo ito.last year it earned 9.4%

[bachelor_zone]

Do the banks allow me to withdraw the interest monthly so that I can use it to pay bills? Another thing how do I compute the money I can have for the end of the year

is it?
the amount deposit x interest for the 1st month
following months will be the amount deposit +last month interest x interest and so on.

For all the replies above thanks so much.

To Bea:Is it a sure money that I dont need to monitor the interest or what's going on with my money.I don't want to have a risk in my hard earned money.I better put up a business if am willing to take the risk.Just asking.BTW thank you for the offer.Pls. give us a concrete example. Like if I deposit my 100k to your bond fund how much will I have at the end of the year?Sorry I'm slow in accounting :)

[Cherie]

uy interesado din ako dito...
may pera din akong gustong ideposit.

[Krakista]

Originally posted by bachelor_zone
Do the banks allow me to withdraw the interest monthly so that I can use it to pay bills? Another thing how do I compute the money I can have for the end of the year
I have TD account in China Bank that credits the monthly interest to my savings account and is not rolled over to the principal. The interest rate varies per month though.

[pissed_at_you]

so which bank is the most secure with really good interest rates for time deposit?

[Bea19]

it is safe kse invested lang sya sa fixed income instruments like government securities, corporate papers etc...kumbaga risk free instruments ang gamit kaya Philam Bond FUnd ang tawag sa kanya...Yung p100K mo may entry fee lang na 1.5% so papatak na ang investment amount mo ay P98500, you multiply that by the conservative projected interest na 8% tapos yung result nun around P7880 ang makukuha mo...yan ang conservative projection pero since 1997 ang performance ng bond fund namin ay hindi pa bumababa sa 8.5%, last year we performed 9.4% net. So lahat ng earnings mo exempted sa withholding tax.Pls Pm me na lang you email so I can send you some materials.Thanks

[CaRaMBa]

Convert to US dollars or Euro, then place it in time deposit.

Leigh suggested t-bills also, sounded good, but I'm not sure how that works.

[bachelor_zone]

to krakista: ok ba ang china bank.Balita ko kasi kung sa maliit na bangko malaki daw interest. Kindly confirm if it's true.TY.

[floreno]

Originally posted by CaRaMBa
Convert to US dollars or Euro, then place it in time deposit.

Leigh suggested t-bills also, sounded good, but I'm not sure how that works.


Mas advisable to kasi di masyado stable ang peso nowadays...

Pero does this scheme can lead to Money Laundering? not sure

[mac_bolan00]

TD's do not compound interest within the term.

[KuyaDanny]

Originally posted by CaRaMBa
Convert to US dollars or Euro, then place it in time deposit.


Proceed with caution when considering this alternative. The return on this type of investment is influenced by many factors - chiefly, the exchange rate fluctuation, and the interest rate in the foreign currency.

Example:

If you had P100,000 to invest one year ago, you could have used the money to buy $ at 55.15. That would be $1,813.24, placed in a TD at, say 2.00% per annum (approximately the prevailing rate at the time). Upon maturity today, you would receive $1,849.50. Let us ignore withholding taxes in the meantime. Supposing you sold your dollars today at P55.85, you would get P103,294.58 - a return of 3.29% per annum in pesos.

Had you stayed in pesos and invested for one year at 7.00%, you would have P107,000 today. Even if you deducted 20% withholding taxes, you would still be ahead.

[mac_bolan00]

my money is basically 60% in various peso TDs and 40% in a dollar passbook account. i've been bottom-fishing the dollar since the start of last month. right now i'm averaging 55.9 (i hate these banks with their Php 0.25/1$ charges!)

i don't plan to sell when it goes past 56: i'll just buy some more whenever it goes below my average.

[CaRaMBa]

KD, wow, galing ng explanation. :) My dad kasi bought at P26 and P30+, then put everything in TD so 10 (?) years yata. So it was more of a long term thing. I'm thinking kasi na tataas pa rin yung dollar in the future, and di na makakabawi ang peso. (I can be totally wrong ehehehe.)

Yung Euro naman, just 2 (?) years ago it was P50 is to one Euro. Ngayon, P68 na. (Just a few months ago, when I opened the dollar account, it was just P66! Ang bilis!) Any thoughts on the Euro?

[bachelor_zone]

Our company products are all from Germany.Our headquarters projection of euro is from 72-76 this coming year (2005).I'm thinking of converting my cash to euro also but I don't know where to buy.

[bachelor_zone]

Pardon my ignorance. Why is it that if you put your money in time deposit there is another tax for it to think that this is the net of our salary after deducting tax.Is it because it earns through time deposit. If yes, then 20% deduction is too much. Please explain. Thanks so much.

[bachelor_zone]

Sorry I was just pissed about the tax thingy hehehe.

[KuyaDanny]

Taxes do tend to piss people off. ;) But it's the law.

So you think the tax on interest on deposits is double taxation? Well, so do I. How will this encourage savings and investments? I have absolutely no idea.

Soon this government will be taxing methane from human sources. Go figure.

[KuyaDanny]

Originally posted by CaRaMBa
KD, wow, galing ng explanation. :)

Hi, Cha. Your dad made good money, but remember he made those spectacular gains over a long time. The reason I made the illustration was to also make the point that when investing in foreign currencies, the time frame of the investment matters when anticipating gains.

The fellow who asked the first question stated some objectives with regard to his investment - he wanted to place his money for a year, he did not want to "play" with his investment, he did not want to think that much, and he was investing his emergency fund. In my business, the investor's objectives are very important when deciding where to place money and given the thread starter's stated objectives, I would not have recommended a foreign currency investment. In fact, I thought he chose his financial instrument quite well when he started shopping for time deposit rates.

As for the Euro, I can't answer your question without knowing how long you are ready to stay invested. Keep in mind that Euro interest rates are very low now and will probably continue to remain low until their economy needs to be slowed down. There is little inflation in the Euro economies at the moment. As for the exchange rate, consider that exports from the Euro zone aren't exactly flooding the world at the moment. There are also new countries who will soon join the economic union and will need to adjust their economies. Will the monetary authorities tolerate a strong currency for long?

[Krakista]

Wasn't that 20% withholding tax a presidential decree by Marcos?

[mac_bolan00]

we put that tax in simply to weasel out more money from the people.

the correct reason (fiscal) for taxing interest income is when the population already has too much money stashed in deposits that the consumer sector of the economy is in danger of dying out. people are encouraged them to spend more.

in some communist countries (like cuba), interest income was taxed (along with a maximum ceiling on deposits) to discourage people from LOI (living off interest). in communist countries, everyone is encouraged to work.

[bachelor_zone]

May I know if all time deposit has 20% interest or it starts only for those deposits amounting to 100k and up? Thanks.

[KuyaDanny]

Every #$%$@%^@% time deposit in this country is $#$$@%!% taxed.


(Sorry, but you know how I feel)

[Krakista]

Originally posted by bachelor_zone
to krakista: ok ba ang china bank.Balita ko kasi kung sa maliit na bangko malaki daw interest. Kindly confirm if it's true.TY. OK naman. It has the highest interest rate among the banks within my area for the amount I deposited. I think China Bank is the most profitable bank in the country in the last 2 years.

[bachelor_zone]

Originally posted by KuyaDanny
Every #$%$@%^@% time deposit in this country is $#$$@%!% taxed.


(Sorry, but you know how I feel)

Thanks for clearing that out KuyaDanny...........BTW Happy Birthday!

Back to the topic how about if I just put my money in a regular savings account.Is it still taxable?How about if I spread to different banks say by 20k regular savings only.

Again I hate this tax scheme gggrrrr.(sorry for saying it again).

[Krakista]

May tax rin ang savings account. Kung gusto mong walang tax itago mo yung pera mo sa ilalim ng kutson.

As the old saying goes, there are two things inevitable in life--death and taxes.

[mac_bolan00]

before you decide on any time deposit, you have to consider the phenomenon of compounding. a savings atm/passbook account earns interest every month (yes, it's taxed but never mind). the interest earned in month 1 immediately becomes a deposit that will also earn interest starting month 2. a 90-day TD might earn a higher income every month but that is not compounded. only if you roll it for another 90 days will you get that chance. therefore, compare the total interest one will earn in a year for a given amount deposited into the following:

passbook @ 1.6%
90-day TD @ 2.4%
180-day TD @ 2.6%
360-day @ 3%

you will find that the one with the longest tenor (360) gives you the highest income only by a small percentage AND, only if you continuously roll it for several years.

[lilyrose]

Originally posted by bachelor_zone
to krakista: ok ba ang china bank.Balita ko kasi kung sa maliit na bangko malaki daw interest. Kindly confirm if it's true.TY.

HI:) share ko lang po, i have time deposit sa rural bank lang pero 8% ang interest. ok na di ba? :D

[bachelor_zone]

Originally posted by Krakista
May tax rin ang savings account. Kung gusto mong walang tax itago mo yung pera mo sa ilalim ng kutson.

As the old saying goes, there are two things inevitable in life--death and taxes.

this idea already crossed to my mind before hehehe.but I'm keeping my option open.My money is still in my account provided by our company (in short payroll account)

[bachelor_zone]

Originally posted by lilyrose
HI:) share ko lang po, i have time deposit sa rural bank lang pero 8% ang interest. ok na di ba? :D

thanks lilyrose for sharing...............is it fixed for the whole year?

[charmedPrue]

i have a peso time deposit in PNB. 40k for 3.5 (or 3.6)% per month.

i'm also looking for other banks who has a better offer :)

[KuyaDanny]

3.5% per month?

or

3.5% per annum for one month?

[charmedPrue]

i'm not sure.. what's the difference..?

i'm earning more or less 1k a month...

[duhboy]

A time deposit of 40 thousand pesos earning 1000 pesos per month? You MUST be a joker. Or worse. A liar. OR it could be just some mistake.
That would be something like 25% per annum. And that's not even compounded.

Whatever kind of bank would quote its interest rate on a monthly basis? Rates are usually per annum. I have yet to see a bank giving out monthly interest rates. The 3.5% rate must be per annum. If it were per month, that would have to be 42% if I'm not mistaken. Taken into consideration what you say you earn per month of 1000 pesos, means compounding the interest, you get an even more unbelievable interest rate.

Pakitingnan na lang ulit yung mga sinulat mo. May mali ata.

[duhboy]

Originally posted by mac_bolan00
before you decide on any time deposit, you have to consider the phenomenon of compounding. a savings atm/passbook account earns interest every month (yes, it's taxed but never mind). the interest earned in month 1 immediately becomes a deposit that will also earn interest starting month 2. a 90-day TD might earn a higher income every month but that is not compounded. only if you roll it for another 90 days will you get that chance. therefore, compare the total interest one will earn in a year for a given amount deposited into the following:

passbook @ 1.6%
90-day TD @ 2.4%
180-day TD @ 2.6%
360-day @ 3%

you will find that the one with the longest tenor (360) gives you the highest income only by a small percentage AND, only if you continuously roll it for several years.


Hey mac bolan00

I actually deposited my money in a passbook account earning 1% only, compounded quarterly. What bank did you get your rates from??? Lugi ako ah...

[charmedPrue]

Originally posted by duhboy
A time deposit of 40 thousand pesos earning 1000 pesos per month? You MUST be a joker. Or worse. A liar. OR it could be just some mistake.
That would be something like 25% per annum. And that's not even compounded.

Whatever kind of bank would quote its interest rate on a monthly basis? Rates are usually per annum. I have yet to see a bank giving out monthly interest rates. The 3.5% rate must be per annum. If it were per month, that would have to be 42% if I'm not mistaken. Taken into consideration what you say you earn per month of 1000 pesos, means compounding the interest, you get an even more unbelievable interest rate.

Pakitingnan na lang ulit yung mga sinulat mo. May mali ata.
such harsh words from an "intelligent" person like you. i bet you don't make mistakes huh

KD: sorry, my mistake. just checked my passbook and i think it's a per annum per month :) i'm getting 3.75% for that.

[duhboy]

I am VERY sorry that had to sound harsh. I actually wasn't being harsh. I was being paranoid. It's just that I can't stand people giving false information especially when it comes to money - somebody's got to say something to stop the smallest of mistakes or lies before anybody starts believing in them.

Yup you're right. It's 3.75% per annum. But but could you please clarify that part about getting 1000 per month on a deposit of only 40 thousand. That's 2.5% per month meaning 30% per annum.

Well I DID say it could have been a mistake, didn't I? :)

[aticus]

I'm going back to Manila for the Christmas holidays, and was thinking of investing a certain sum in US dollar long-term time deposit accounts. My dad's bank will give me 2.5% per annum. and since, long-term, I feel that the peso won't appreciate versus the dollar, I feel that this might be a decent move. It's higher than the rate I'd get in Thailand, where I work. Heck, Citibank only gives about 1%.

What do you think, KD? Anyone else? :)

[charmedPrue]

Originally posted by duhboy
I am VERY sorry that had to sound harsh. I actually wasn't being harsh. I was being paranoid. It's just that I can't stand people giving false information especially when it comes to money - somebody's got to say something to stop the smallest of mistakes or lies before anybody starts believing in them.

Yup you're right. It's 3.75% per annum. But but could you please clarify that part about getting 1000 per month on a deposit of only 40 thousand. That's 2.5% per month meaning 30% per annum.

Well I DID say it could have been a mistake, didn't I? :)
apologies accepted :) but hopefully next time, it would be better if you could choose your words properly so as not to hurt other people's feelings. you can always get the person's attention by asking questions and clarifying, not by accusing them of being a liar... :)

now that i think about it, P100-200 lang pala interest ko per month. sorry for the wrong info. i'm also not very familiar with these kinds of things so pagpasensyahan nyo nalang ako. i also want to learn :)

[KuyaDanny]

Originally posted by aticus
What do you think, KD? Anyone else? :)

Indeed, you will get better rates on dollar deposits in the Philippines than you would outside the country. People here can speculate why this is so. I will keep quiet in the meantime.

But, hey, your dad runs the bank. You can't get any more in touch than that. Go for it.

[aticus]

Thanks, KD. :) We should meet up when I get back. I'll be treating Leigh out anyway, so I'd like to invite you along. You can ask her why. ;)

Regarding interest rates, I would like to ask everyone's opinion regarding what the UP economists said recently about our possible economic meltdown. How do you see this affecting short and long-term bank interest rates? What should we do about it? And would this then make a US, or other foreign denomination, currency account a more attractive investment option for your cash?

[mac_bolan00]

i don't believe in dollar TDs. you have tou be liquid; able to throw in more dollars wheneven the peso appreciates, and able to convert to peso when ever the dollar goes up.

[Bea19]

ei if your all pissed about the witholding tax thing and the low interest a good alternative would be mutual funds.all the proceeds are net of taxes kse mutual funds are exempted sa withholding tax.;) suggestion lang...

[oyii]

SMART MONEY FUND ng BDO, holding period of 30 days, after that you can withdraw your money anytime or pwede mo i-roll ang pangit lang nde sya pdic insured.. not sure sa interest rate per annum pero last time na nag place kami its 3.5%..

[aticus]

Originally posted by mac_bolan00
i don't believe in dollar TDs. you have tou be liquid; able to throw in more dollars wheneven the peso appreciates, and able to convert to peso when ever the dollar goes up.

Good point, mac, that's why I'm only putting in a few thousand. :) I really don't want to convert to pesos, though. I'm just keeping my dollars as a hedge against the Thai baht, which has already depreciated by almost 9% in the last few months. Since I earn in baht, I wanted to stop bleeding while I could. I think their economy is on the bubble anyway, so I figure this is as safe a bet as any. I'm also going to be investing in other things, but I figured that since the dollar TD rates are highest back in Manila, I might as well take advantage of them. :)

I'm still liquid, though. I'm not putting in all my life's savings, of course. :) Just a few thousand USD to start with. I'll see from there. Period is for 12 months anyway, so I'm not too worried. Thanks for the advice.

[xxray]

Originally posted by Bea19
ei if your all pissed about the witholding tax thing and the low interest a good alternative would be mutual funds.all the proceeds are net of taxes kse mutual funds are exempted sa withholding tax.;) suggestion lang...

Pero, meyroon minimum length of time to leave money in mutual funds, dba?

Good alternative though, thanks!

:)

[Bea19]

yes sa peso and dollar bond funds minimum lang is a year pero very liquid sya pero in case of an emergency and you need to withdraw it may 1% pre-termination fee lang. ;)

[charmedPrue]

bea: san maganda mag-invest ng mutual bonds? tagal ko na kasi gusto. ang naririnig ko lang is sun life financial. and magkano minimum amount? as of now kasi hindi ko pa kaya money market :D

[mac_bolan00]

sun life and philam are basically the same: 10K bonds gnerally for a 7-year term. you have the ff. options:

standard bond (7%-9% pa)
balance (30%+)
equity (30%+)
dollar (2%-4%)

don't be too dazzled by the balance and equity funds. they sometimes lose value (as much as a 3-year stretch). the standard bond is the most reliable. if you find the 7-year term too long, you can split it to 3-yr retail t-bills.

but the dollar bond is something you might look into. any dollar fund that gives more than 3% pa is already a good bet.

[charmedPrue]

7-years? ang tagal naman... bea mentioned a year lang. or iba pa yun?

[thehitman]

You can withdraw before the seven years are up but there will be pretermination charges. This applies to funds with back-end loads. For front-end load funds, there's as much as 3% charge when you invest, but you can get the money anytime.

:cool:

[simonesez]

Originally posted by aticus

Regarding interest rates, I would like to ask everyone's opinion regarding what the UP economists said recently about our possible economic meltdown. How do you see this affecting short and long-term bank interest rates? What should we do about it? And would this then make a US, or other foreign denomination, currency account a more attractive investment option for your cash?

In light of the President's admission that we're in trouble, what should we do about large peso deposits, should we start converting to foreign-denominated deposits (dollars mostly as euro is agreeably not that reliable yet)?

[KuyaDanny]

Depends on where those foreign-denominated deposits are. If they are outside the country, it would be called capital flight and is probably not something the President (or many of your fellow Filipinos) would be happy to see you do.

[simonesez]

Originally posted by KuyaDanny
Depends on where those foreign-denominated deposits are. If they are outside the country, it would be called capital flight and is probably not something the President (or many of your fellow Filipinos) would be happy to see you do.

...foreign-denominated deposits would be. And the answer is they'd be in the Philippines, so the President and my ill-starred, hapless and ill-fated fellow Filipinos need not worry.:D

[aticus]

I'm not actually taking money out of the country. :) I'm putting more dollars back in to the system. :) I earned this money while working in Thailand, and am bringing it back with me to Manila, where it shall remain.

To be frank, based on the UP economists' assessment, and GMA's pronouncements, I see the peso free-falling versus the dollar in the medium to long-term, so an investment in US dollars might be very prudent indeed. Naturally, Philippine peso TDs would offer higher interest, but the risk-premium that's added may not cover the actual currency risk I face from a very weak financial system and anemic fiscal policy.

[mac_bolan00]

my opinion on the impending crash: yes, the peso could eventually go down to 100:1 to the dollar but that will take several years. as to local interest rates, i don't see t-bill rates going to 19% is they did in 1997. back then, practically all the banks' money was lent out. the move was to hedge on increased risk to all the businesses at the time. right now, banks still aren't lending much. don't expect lending rates to go past 18% average (right now it's averaging 12.5%). deposit rates will continue to suck.

inflation? anything past 3% will equal a bad year, anything less than that makes a good year.

again, don't lock your dollars in a TD longer than 3 months. what if the peso does a short-term appreciation? you're sunk!

[simonesez]

Originally posted by mac_bolan00


again, don't lock your dollars in a TD longer than 3 months. what if the peso does a short-term appreciation? you're sunk!

Sounds sensible.

[simonesez]

On another note, while some analysts claim that the President's mouthing of the "F" phrase (fiscal crisis) is just a ploy to win support for new tax measures, it may have actually hastened our fiscal woes. The dollar just crossed the P56 barrier at 2:50 PM. Still going...

[aticus]

Originally posted by mac_bolan00

again, don't lock your dollars in a TD longer than 3 months. what if the peso does a short-term appreciation? you're sunk!

Makes sense, mac, but I'm not in the Philippines most of the year. I accept that I may lose out in the short term, but I really don't have time to watch my money year round. What I am guessing is that the peso will not appreciate against the dollar over the next 12 months as a whole, regardless of short-term gains or other fluctuations. Of course, I could be wrong, but nonetheless I still earn at a higher rate than i would in the US, so it's all good. :) I spend my money in Thailand or in the US anyway... I rarely spend in Manila, so I guess this option fits my needs best. Are there any other possible options I can choose? I'd still like to have US dollars at the end of the day, though.

Thanks again for all the input.

[mac_bolan00]

haayy.. sa wakas! my average buying price has gone below yesterday's closing. now i'll just whistle in the wind. i'll buy more when the peso goes up.

[simpleonly]

questions:
(1) in computing the interest on time deposit, do banks in the Philippines always use "360 days" as the divisor?

(2) do banks in the Philippines have agreements whether the interest on time deposit is variable or fixed or is it always variable?

thanks :)

[KuyaDanny]

1) I think they use 360 days for deposits of one year or less, and 365 days for deposits longer than one year.

2) Interest could be fixed OR variable. Banks will sell an interest plan based on what they can afford and what the market will buy.

[simpleonly]

i see.

salamat Kuya Danny ;)

[lalaboy]

You can double your money in 5yrs and get the interest payments monthly. Text me your name and contact number at 09169649825 so that I may get in touch with you.

[Bourne Supreme]

Which bank offers the highest interest rate for a time deposit?

This is money (not that much really =) ) that I won't touch

unless it's a life or death situation. The previous posts seem to

suggest Mutual Funds are a good way to go considering the

timeframe but I want something 100% risk- free. Any advice from

you financial gurus?




"On any given Sunday you’re gonna win or you’re gonna lose. The point is — can you win or lose like a man?"
— Tony D’Amato

[racho]

There's no such thing as 100% risk free. Although government bonds and super large international corporations come close.

[elao2]

Racho is correct. Also pre-need is a good option, but you shoud invest in Philam,Prudential,Sunlife or Pacific, these being very stable companues with very big trust fund to cover maturities...

[KuyaDanny]

CIRCULAR NO. 461
Series of 2004

Pursuant to Monetary Board Resolution No. 1583 dated 28 October 2004, which authorized the removal of the minimum term of time deposits accepted/offered by banks, Section X231 of the Manual of Regulations for Banks is hereby amended to read as follows:

"X231 Term of Time Deposits. Time deposits shall be issued for a specific period of term."

This Circular shall take effect immediately.


FOR THE MONETARY BOARD:

AMANDO M. TETANGCO, JR.
Officer-in-Charge

17 November 2004

[jolog1]

If you have P100k, put it in Banco de Oro's Premium Growth Fund, it yields 7.5% and the holding period is only 30 days. Just keep rolling it every month.

If you have P564k, convert it to US dollar and put it in Banco de Oro's Smart Money US dollar time deposit, it yields 3.2% after taxes. Minimum is $10k. Holding period is only 30 days.

If you have P1 million, you could get as high as 9% annual interest through PSbank time deposit. Holding period is 1 year.

If you have over P1 million pesos and you don't plan on spending it, I recommend you convert it to US dollar and put it in time deposit. If you compare the value of peso from 2 years ago, it has devalued 10%.

[Bourne Supreme]

And if it's less than P100k? Many thanks for the replies.

[jolog1]

Less than P100k? I don't know. I think it's 6 something percent at Banco de Oro, 30 day holding period. Another option is to have a relative of yours (that you trust) to join the account with you so you can reach the P100k bracket.

If it were me, I'd buy lots of phone cards and internet cards and try to sell them slowly.

[froshie1]

Originally posted by elao2
Racho is correct. Also pre-need is a good option, but you shoud invest in Philam,Prudential,Sunlife or Pacific, these being very stable companues with very big trust fund to cover maturities...

When you say Prudential you're referring to Prudential Financial or better known here as Pramerica am I right?

[vandarkala]

Do not put your money in time deposit unless there's a particular investment in the future that it is meant for. Time deposits will only hold up your money for low returns. The best way to make more money is to invest. Time deposits are just there as an option for people who have large sums of cash who intend to invest it at a later time. Time deposits are not there for you to live on their interest unless you have something like 100 million pesos. The current market rate is around 7% p.a. for a deposit of around 10 million pesos. High interest yielding rates should be avoided. Think Urban Bank. If you don't know what happened there, you don't know what you're talking about.

[Bourne Supreme]

Where do I invest? I'm afraid I don't have time to moonlight.

Keep em coming! Thanks!

[vandarkala]

where to invest is the problem. you can bet on fx derivatives or government stocks, bonds and t-bills but it'll take quite a huge chunk of money. investing in government stocks and bonds are generally accepted as the safest investment and ensure certain returns, however they come at a hefty price. Last time I checked, it'd take at least 10m to invest in that. find a business. personally, I'd like to have a Figaro franchise. It's at least 2.5 m. or Bento Box which is less than 1m i think.

[vandarkala]

Originally posted by jolog1
Less than P100k? I don't know. I think it's 6 something percent at Banco de Oro, 30 day holding period. Another option is to have a relative of yours (that you trust) to join the account with you so you can reach the P100k bracket.

If it were me, I'd buy lots of phone cards and internet cards and try to sell them slowly.

read the fine print my friends. that's 6% p.a. and not per month. in your dreams. ask them how many days they divide the year into as well as the compounding method. that way you can compute the amount of money you'll have at the end.

[jolog1]

^ I think everyone knows it's per year. If it's 6% per month then why would anybody work these days?

[vandarkala]

maybe some people are ignorant

[wrench]

good morning!

any suggestion on which bank I should open a savings account with?
I'm looking at BPI's Maxi-One, is it any good? Are other banks offering the same account(savings/checking/atm)?

I'm planning to open an account soon, as in tomorrow.
Hope you guys can help me in my decision.

Thank you so much! :)

[wrench]

good morning!

any suggestion on which bank I should open a savings account with?
I'm looking at BPI's Maxi-One, is it any good? Are other banks offering the same account(savings/checking/atm)?

I'm planning to open an account soon, as in tomorrow.
Hope you guys can help me in my decision.

Thank you so much! :)

[raider03]

^yup, i think Maxi-One is a good product (savings-checking-atm in one account). it also earns interest. ok yung atm card ng bpi 'coz you can also use it as a debit card (may ganito din yatang feature yung atm card ng banco de oro). you can also enroll your bills in their Check-free payment, either thru their branches/kiosks, phone (magagaling yung phone bankers nila, as in, you can call 89-100 anytime) and internet. i think the other BPI accounts (those with atm cards) also have the same features (debit card and check-free payment). loyal ako sa bpi, lahat yata ng pera ko nasa kanila (duh, parang ang dami kong pera, hehe).

ok din yung deposit/investment products ng banco de oro. mas mataas yung interest rates na ino-ooffer nila compared to several other banks.

it is also wise to invest in foreign-denominated currencies (dollar or euro), pati na rin in government bonds. basta, diversify your investments. :)

[froshie1]

Could anyone explain to me what is compound Interest?

[zimdude]

Here's a nice explanation. http://en.wikipedia.org/wiki/Interest

[froshie1]

thanks zimdude!

[froshie1]

so lahat ng savings account ay may compound interest?

[froshie1]

at iyong mga ordinary payroll atm account ba may interest ba iyong mga iyon?

[vandarkala]

yes, they do. 1% p.a.

[chinkybubbles]

If you have P100k, put it in Banco de Oro's Premium Growth Fund, it yields 7.5% and the holding period is only 30 days. Just keep rolling it every month.

If you have P564k, convert it to US dollar and put it in Banco de Oro's Smart Money US dollar time deposit, it yields 3.2% after taxes. Minimum is $10k. Holding period is only 30 days.

If you have P1 million, you could get as high as 9% annual interest through PSbank time deposit. Holding period is 1 year.

If you have over P1 million pesos and you don't plan on spending it, I recommend you convert it to US dollar and put it in time deposit. If you compare the value of peso from 2 years ago, it has devalued 10%.

How about T-bills? I heard that they yield the highest interest but there's a 20% tax, regardless of the term. Assuming I have 100k to invest, which will be the better option between BDO's Premium Growth Fund and T-bills? Thanks :)

[SILENTMAX]

like dollar denominated accounts in banks does anybody know any banks which offer euro denominated accounts?

[KuyaDanny]

HSBC takes Euro deposits.

[vandarkala]

How about T-bills? I heard that they yield the highest interest but there's a 20% tax, regardless of the term. Assuming I have 100k to invest, which will be the better option between BDO's Premium Growth Fund and T-bills? Thanks :)

You can't buy a T-bill with 100K unless you're talking about greenbacks.

HSBC also takes CAD , AUD, CHF , GBP, HKD, JPY and SGD. (That's Canada, Australia, Switzerland, Great Britain, Hongkong, Japan and Singapore)

[chinkybubbles]

You can't buy a T-bill with 100K unless you're talking about greenbacks.

HSBC also takes CAD , AUD, CHF , GBP, HKD, JPY and SGD. (That's Canada, Australia, Switzerland, Great Britain, Hongkong, Japan and Singapore)

Hmm, what's a greenback? :D This is what I'm talking about:

http://www.chinabank.ph/productsServices/governmentSecurities.htm

[speQter]

For BPI's time deposit interest rates, visit this link:
http://www.bpidirect.com/deposit_products/deposit_rates.html

[vandarkala]

Hmm, what's a greenback? :D This is what I'm talking about:

http://www.chinabank.ph/productsServices/governmentSecurities.htm

A greenback's a US Dollar.

[chinkybubbles]

A greenback's a US Dollar.

Ahh, pardon my ignorance :blush: So, what do you think about the T-bills being offered by Chinabank? Thanks!

[vandarkala]

Sounds like fair game. And T-bills are, in fact, one of the most secure investment options. If the interest rates and periods work for you, then go ahead. Make sure you compute correctly the net interest you're going to earn as there is a big tax. And divide the net interest earned by the number of month in the term. You might find that it's not that enticing after all. Otherwise, T-bills are a safe and sound investment which banks regularly deal in themselves.

[KuyaDanny]

When buying T-Bills, be aware that you should be open to accepting odd/weird periods (79 days, for example), not like 30-60-90, ets which are almost always available daily for time deposits.

[Hulk]

And if you buy a Tbill, FXTN, RTB or any fixed-income security, then you should likewise open a 3rd party custodian securities acct. This account will cost you money and will further eat up your earnings.


:frank:

[chinkybubbles]

Thanks for the input, guys *okay* Now I think I can decide :)

[Carlitos]

I'm planning to put my money in a bank, where it is safe and at the same time earning .

How much do most banks offer nowadays for Time Deposits ? Interest rates ...

Do they tax those TD's?

Thanks.

[tidus1203]

Yes even a simple saving account is taxed.