Special Deposit Accounts / SDA

[KuyaDanny]

Most likely, also through the closed bank, which will at that time be supervised by PDIC representatives. Since the SDA is not a deposit with the bank, the verification process will be simpler than claiming a regular deposit.

[KuyaDanny]

http://www.bsp.gov.ph/publications/media.asp?id=2789

Monetary Board Cuts Policy Rates

01.19.2012

At its meeting today, the Monetary Board decided to reduce the BSP's key policy interest rates by 25 basis points to 4.25 percent for the overnight borrowing or reverse repurchase (RRP) facility and 6.25 percent for the overnight lending or repurchase (RP) facility, effective immediately. The interest rates on term RRPs, RPs, and special deposit accounts (SDAs) were also reduced accordingly.

The Monetary Board’s decision is based on its assessment that the inflation outlook remains comfortably within the target range, with expectations well-anchored. Latest baseline forecasts indicate that average annual inflation rates are likely to fall within the lower half of the 3-5 percent target range up to 2013. Pressures on global commodity prices are seen to continue to abate amid weaker global growth prospects. However, the impact of strong capital inflows on domestic liquidity and the effect of geopolitical tensions in the MENA region on global oil supplies will continue to pose upside risks to inflation.

What this means is that the SDA interest rate will now be 4.4375% pa (before deducting taxes and trust fees).

[freelancer_babe]

^ That increase looks good. Wag lang lakihan ng banks ang trust fees nila.

[KuyaDanny]

Unfortunately, it is a decrease, not an increase. The previous gross rate was 4.6875% pa.

[freelancer_babe]

^ Hoops mali, LOL. I based it on the typical net rates by banks.

Pero yes, I noticed that the interest rates are getting lower. Bumaba na naman.

[KuyaDanny]

It looks like the BPI branch people have been briefed that the interest rate outlook will turn lower in the near term. They sent me an email informing me of the reduction in SDA rate, and suggested that I switch some funds into the ALFM Peso Bond Fund to improve my returns.

[freelancer_babe]

People will start pulling out their deposits na from their SDA's!

[Hicham]

http://www.bsp.gov.ph/publications/media.asp?id=2789



What this means is that the SDA interest rate will now be 4.4375% pa (before deducting taxes and trust fees).

Yes, I was informed too during the rollover of my account. I'm not an expert on interest rates... I think I need to educate myself on these things.

But it seems the government is encouraging people to borrow rather than to save. Is that right Kuya Danny?

[KuyaDanny]

Not exactly "borrow rather than save". The BSP is changing its stance from fighting inflation to pushing growth. Low interest rates encourage borrowers (businesses, mostly) to borrow more and use the money to invest in their businesses, helping them grow. But at the same time, they encourage savers to move more of their money from deposits into other investments with longer maturities, and more risk.

BTW, the financial community is anticipating another rate reduction next month.

[KITHE ORTIZ]

Try other options or investment vehicle to increase the purchasing power of your money..

[KuyaDanny]

http://www.bsp.gov.ph/publications/media.asp?id=2818

Monetary Board Cuts Policy Rates Anew

03.01.2012


At its meeting today, the Monetary Board decided to reduce the BSP's key policy interest rates by 25 basis points to 4.0 percent for the overnight borrowing or reverse repurchase (RRP) facility and 6.0 percent for the overnight lending or repurchase (RP) facility, effective immediately. The interest rates on term RRPs, RPs, and special deposit accounts (SDAs) were also reduced accordingly. This rate cut follows the 25-basis-points reduction in policy rates that was implemented in January of this year.

The Monetary Board’s decision was based on its assessment that the inflation outlook remains within the target range, with well-anchored inflation expectations. Latest baseline forecasts have continued to indicate that inflation is likely to settle within the lower half of the 3-5 percent target range in 2012 and 2013. The risks to the inflation outlook also appear to be broadly balanced, with the subdued pace of global economic activity expected to temper the rise in commodity prices. Meanwhile, the upside risks to inflation stem mainly from volatility to oil prices due to geopolitical tensions in the Middle East and from the impact of strong capital inflows on domestic liquidity growth.

What this means is that the SDA interest rate will now be 4.1875% pa (before deducting taxes and trust fees).

[trailblazer_boy]

http://www.bsp.gov.ph/publications/media.asp?id=2818




What this means is that the SDA interest rate will now be 4.1875% pa (before deducting taxes and trust fees).

Not good... liliit kita. Haaay

[xyphrus]

@ Kuya Danny - sir ask ko lang po, diba may savings account po na nakalink sa SDA natin, yung paglalagyan nila ng money mo in case gusto mo munang ipa-stop yung roll-over. What if po magdeposit ako ng pera sa savings account ko, kapag maturity date po ba maisasama na rin yung nilagay ko dun sa roll-over? BTW, naka-automatic roll-over po ako. TIA..

[KuyaDanny]

Yes, yung settlement account yon. I am only familiar with the procedures of BPI, Citibank, and BDO Private Bank. I think you have to specifically instruct the bank every time you want to add to your SDA placement. Hindi automatic.

Maski yung automatic rollover ng principal plus interest hindi pare-pareho ang implementation. Doon sa tatlong example ko, BPI lang ang gumagawa. Sa Citibank at BDO Private hindi.

[xyphrus]

Ah, so kung hindi pala sya automatic ok lang pala na gawin ko muna syang parang isang ordinaryong savings account din? Tama po ba? Kase i'm thinking na baka pag naglagay ako ng pera dun tapos dumating na pala yung maturity date, baka makuha sya or maisama sa pag roll-over.

[KuyaDanny]

You are correct. The bank will place in SDA only what you instruct it to place, and nothing more.

[xyphrus]

Ah, ok. Kuya Danny, thank you very much..

[cuz05]

kakaopen ko lang ng SDA today sa BPI, net indicative yield is 2.85685%. Ang baba na.

[shane_jhan]

hi may way ba na makita ang interesr rate ng SDA sa BPI onine?

[KuyaDanny]

http://www.bsp.gov.ph/statistics/keystat/keystat.htm

The SDA rate is provided by the BSP, not BPI. The BSP link is poseted above. To get the rate paid to you, first deduct 20% from the gross rate provided by BSP, then deduct the TRUST FEE charged by your bank. For BPI, the trust fee is 0.5%.

So, if the gross rate is 4.1875%, the net rate to you is (4.1875% * 0.8) - 0.5 = 2.85% pa.