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Want to meet people who have doubled their money in time deposits.

I am still excited with the news proffered by theprofessor and someone here by the name of philbank something about rural banks of a Legacy Finance Group offering interest of 20% in time deposit of five years, tax exempt, insured by PDIC, and with interest payable every month, so that at the end of five years you should have acquired earnings totaling a double of your original placement.

Do we have anyone who have survived five years of this scheme and is now richer by another million for having invested a million in the rural banks offering that 20% interest product?

Otherwise I guess it's all a scam or a myth or an urban legend.


My apologies to everyone who is fed up with my inquiries about this 20% interest. I got acquainted with it at the PinoyMoneyTalk forum, but I could not get anything by the way of more rational explanations, or less emotional outbursts over how certain the scheme is, and how unfair it is to the proponents to be overly dubious about the scheme.

That is why I brought it up here in the present forum, believing that people here are more objective, less credulous, and not easily stirred up by the lure of big interest rates.


Susmariosep
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Comments

  • Naruto KunNaruto Kun Member PExer
    it's alright. the power of greed is hard to resist for most of us
  • noriebnorieb Batanguena PExer
    I am still excited with the news proffered by theprofessor and someone here by the name of philbank something about rural banks of a Legacy Finance Group offering interest of 20% in time deposit of five years, tax exempt, insured by PDIC, and with interest payable every month, so that at the end of five years you should have acquired earnings totaling a double of your original placement.

    Do we have anyone who have survived five years of this scheme and is now richer by another million for having invested a million in the rural banks offering that 20% interest product?

    Otherwise I guess it's all a scam or a myth or an urban legend.


    My apologies to everyone who is fed up with my inquiries about this 20% interest. I got acquainted with it at the PinoyMoneyTalk forum, but I could not get anything by the way of more rational explanations, or less emotional outbursts over how certain the scheme is, and how unfair it is to the proponents to be overly dubious about the scheme.

    That is why I brought it up here in the present forum, believing that people here are more objective, less credulous, and not easily stirred up by the lure of big interest rates.


    Susmariosep

    If 20% sounds too good to be true..it usually is! :bop:

    Ingat lahat tayo!
  • m_ke2m_ke2 Member PExer
    EastWest Bank offered this (double your money in 5 years) 6 years ago since they were just a small bank before, my mom invested P200K and got P400K dec. last year, since we are 4 in the family my mom gave each of us P100K as a gift (My wife just gave birth and used this money for her delivery).

    She said that she could have invested more but the insurance from PDIC is only 250K, in case something happens to the bank, you only get that amount that is why she invested only 200K because of the risk, but we can't find anymore banks who are now offering this, maybe in provinces.
  • KukuruKukuru Member PExer
    m_ke2 wrote: »
    but we can't find anymore banks who are now offering this
    Because most of them have closed.
  • susmariosepsusmariosep Member ✭✭
    m_ke2 wrote: »
    EastWest Bank offered this (double your money in 5 years) 6 years ago since they were just a small bank before, my mom invested P200K and got P400K dec. last year, since we are 4 in the family my mom gave each of us P100K as a gift (My wife just gave birth and used this money for her delivery).

    She said that she could have invested more but the insurance from PDIC is only 250K, in case something happens to the bank, you only get that amount that is why she invested only 200K because of the risk, but we can't find anymore banks who are now offering this, maybe in provinces.

    Congratulations for your mom's good luck from which you also profited.


    Yes, what I have read so far is that banks can offer irresistible interest rates in order to hoard up big cash in their vaults, so that they can do what banks do best for their owners, making money with other people's money -- of course they also keep other people's money safe from their (other people's) own loss of memory where they hid the money, and from theft, fire, flooding, anays, cockroaches, rats, and other insects and rodents, not excluding the two legged kinds. [Forgive my cynicism.]

    Those big irresistible interest rates are promotional incentives to people to turn over their money to the banks.


    Making money from other people's money is not illegal not dishonest and not immoral provided you get their consent.

    And if you lose their money, they can't blame you because they consented in the first place

    And why would you consent to other people using your money to make money for themselves? Because they promise to share their gains with you.

    And that is very good for the economy of a country. That is why government encourages people to let other people use their money to make money for themselves, going into business undertakings which develop the resources of the country and provide jobs.


    But suppose the banks lend money to people who lend it to other people who lend it further to other people, and no one ever uses the money to undertake activities to develop the resources of the country thereby providing jobs for otherwise unemployed folks?

    Some people get richer and richer and more and more dishonest while some overly trustful people get poorer, but the country goes from bad to worse, with government printing more and more paper to make money but money getting to have less and less buying power.


    Have I got the picture correctly?


    Susmariosep
  • susmariosepsusmariosep Member ✭✭
    From stock knowledge I am aware that a bank is a corporate entity, it is a being created by law but operated by some individuals.

    What we call owners of a bank are actually the people who have decisive power in managing the banks, from the highest levels of corporate hierarchy like the board of incorporators, board of trustees, board of directors, chairman of this and that board, presidents, vice presidents, executive officers for all kinds of functions with all kinds of discretionary powers, and what have you, and lastly the people who have bought shares in the bank.

    Now, also from stock knowledge I am sure all the gentlemen and ladies of the categories mentioned above have fat salaries and plenty of benefits besides, except the shareholders unless these are also holding positions in the categories of operators mentioned above.


    When a bank folds up, the depositors lose money and the simple shareholders, but not the owners of the bank which we call them for being in the categories of hierarchical officers and functionaries mentioned above in the second paragraph of this message.


    Lesson to be learned: if you have a few millions and you know others also to have a few millions, then go into banking. You can run the bank down even intentionally but before you have run it down, you should have already made a lot of money from depositors in the way of fat salaries, per diems, etc., and from all the privileges and opportunities that come your way from being incorporators, trustees, directors, presidents, vice presidents, top level executives, etc.


    So, do IO get the picture correctly?


    Susmariosep
  • susmariosepsusmariosep Member ✭✭
    m_ke2 wrote: »
    EastWest Bank offered this (double your money in 5 years) 6 years ago since they were just a small bank before, my mom invested P200K and got P400K dec. last year, since we are 4 in the family my mom gave each of us P100K as a gift (My wife just gave birth and used this money for her delivery).

    She said that she could have invested more but the insurance from PDIC is only 250K, in case something happens to the bank, you only get that amount that is why she invested only 200K because of the risk, but we can't find anymore banks who are now offering this, maybe in provinces.

    Can you ask your mom to keep a good watch on banks doing promotionals in the way of offering irresistible interest rates like that 20% on five years period with tax exemption and also if possible monthly interest payment which you can withdraw and likewise tax exempt.

    Or any other promotionals which offer some interest rates greater than the routine ones of 1% or a little above.


    I will think of starting a thread which will invite members here to share information about what banks today are going into promotional products with better interest rates, and to discuss these products.

    Susmariosep
  • AgapitoAgapito Member ✭✭✭
    ^ You know, promotions are promotions. It seems like your mind is really fixed mainly on the high interest offers. It's like a juicy carrot on a stick for you.

    The "double-your-money" promotion has been around for quite some time. It's a gamble tactic by the banks. But there have been more losers there, than winners.

    Reading from earlier threads which you described yourself as a "very conservative" person when it comes to your financials, it's hard to comprehend that you still keep talking about "risky" investments like "double-your-money".

    I think you are just being wishy-washy. You want to get rich fast, and yet you want to play it safe. You can't have your cake and eat it too (or the other way around). You'll just end up in a perpetual loop of daydreaming about hitting it big.

    Just snap out of it.
  • turmoilturmoil Member PExer
    Just snap out of it.

    :eek:

    I know of guys that are doing rather well with these capital guaranteed(250.000) deposits paying 20% for over two years now.
    Thats one hell of a promotion period !!:lol:
  • susmariosepsusmariosep Member ✭✭
    My original concern was with "Safest ways to make money earn most money."
    I need advice and tips to put my life's savings in any kinds of plans by which my savings will be most safe and yet earn the most money in the least time.

    I have realized that there is no least time to make big easy money honestly and legally and with the kind of safety that I would like to enjoy.

    However, in the process of reading and writing about making money earn money, big, easy, quick, and safe, I have learned a lot of things about bank interest rates and banking practices.

    Then also I truly enjoy reading, thinking, and writing; and the best place to write so that some people will read your writing is in a web forum.

    Yes, you are justified to say that I am being wishy washy, but not so very correct; because I am finding out the least risky and the most productive manners and the fastest time to make money earn money.

    So far the criterion of ease as in making money the easiest way is satisfied by putting money in bank time deposits earning big interest.

    This is the most easy way to make money, because you just have to do some paper work and wait after you have handed over your money to the possession of another party, that is the bank. Handing over your money, that is the most risky part because it might not come back, much less with more money than you handed over.


    Therefore at present I am actually studying how to reduce the risks and lessen the time period on the consideration that I will make money earn more money easily with time deposits.

    What about buying stocks or joining mutual funds? When I have made more money as to be comfortable with risks, because my present and future needs are assured, then I might go into that direction, by then I would not mind losing some money which I can spare for trying to earn more money which I don't really need except as a luxury.


    Thanks, everyone, for your contributions of ideas, information, and experience.

    And do we have more people here who have doubled their money with time deposits in banks? So far, only one has come forward.


    Susmariosep
  • metropolitanmetropolitan the truth hurts, does it? PExer


    And do we have more people here who have doubled their money with time deposits in banks? So far, only one has come forward.


    my money did not double because i took the interest in advance. i was issued post dated checks for the monthly interest payouts. if you would add the checks i received it is exactly 100k.
  • AgapitoAgapito Member ✭✭✭
    Yes, you are justified to say that I am being wishy washy, but not so very correct; because I am finding out the least risky and the most productive manners and the fastest time to make money earn money.
    The problem is, you seem to be moving in circles. After you have analyzed a promotion and concluded it to be risky, you start all over again analyzing the same promotion because you seem to be very hypnotized by the high gain and you are having trouble of letting it go.

    Make up your mind.
    So far the criterion of ease as in making money the easiest way is satisfied by putting money in bank time deposits earning big interest.
    Everytime you say "earning big interest", you should always mention the associated risk the comes with it. Everybody here has been telling you that your "double-your-money" scheme is very risky. The fact that only a few people are telling you that they actually have doubled their money, it should be a sign telling you your probability of hitting it big yourself. Make your final call: BITE THE BULLET or JUST LET IT GO. You can't be stuck analyzing something forever.
  • turmoilturmoil Member PExer
    Everybody here has been telling you that your "double-your-money" scheme is very risky.

    Could "Everbody" or even just you please explain why depositing P250.000 in a rural bank 5 year TD is "risky" when it is obviously insured by PDIC?
    Have you heard of a bank registered correctly with PDIC that has gone bankrupt and depositors cash (up to the insured amount) not being returned?
    Its very easy to be sceptical but not always so easy to justify your skepticism..
    Lets see.
    Btw. I agree with your assessment of the shall I?- shan't I? guy.*okay*
  • ako_toitzzako_toitzz Member PExer
    turmoil wrote: »
    Could "Everbody" or even just you please explain why depositing P250.000 in a rural bank 5 year TD is "risky" when it is obviously insured by PDIC?
    Have you heard of a bank registered correctly with PDIC that has gone bankrupt and depositors cash (up to the insured amount) not being returned?
    Its very easy to be sceptical but not always so easy to justify your skepticism..
    Lets see.
    Btw. I agree with your assessment of the shall I?- shan't I? guy.*okay*
    as those financial expert always says, high gain high risk, low gain low risk. its a little kind of gambling, you know guys, about those rural banks. they give you high interest becoz they need money to finance their businesses and investments , to attract more people to deposits their money with them. the problem is, if bancrupcy occurs, bank closure happens. what will happen then to your money???

    yes, it is insured by pdic. but you know guys, most of this rural banks are owned by ex. government officials e.g. ex generals ex. politicians, ex cabinet member. only a little percent by a real businessman specially foreign like chinesses, which they uses it as their front. that their bank is owned by legit businessman.
    now, we go back to bank closure or bancrupcy, you know guys how this ex. government officials or politicians can manipulate the sysytem. sure your money is insured with pdic, but the question is, how long will you gonna get it back? how much time and energy will you consume to get your money back? you know how the justice sysytem works here in the philippines.
  • turmoilturmoil Member PExer
    how much time and energy will you consume to get your money back?

    I seem to remember that the PDIC guarantee money back within 6 months but can't be bothered to go and re check this fact.
    You can if you like.;)
    However I do know of someone that had money in the Bank of Cebu which went bankrupt last year and his 250.000 was returned in less than a month.
    This is fact and not pure conjecture based on ignorance or hearsay.

    Most high yielding investments or business ventures are high risk along with trading on the PSE etc. Your capital can be wiped out in a single day without recourse or refund.
    Investors know the risks before they invest.

    I`ll ask again. Does anyone know of any investor not recieving his deposit back (up to 250K limit) from PDIC on bank closure ?
    Answer that convincingly and you may well have a case for using the word "risk" when addressing this rural bank product.*okay*
  • ako_toitzzako_toitzz Member PExer
    turmoil wrote: »
    I seem to remember that the PDIC guarantee money back within 6 months but can't be bothered to go and re check this fact.
    You can if you like.;)
    However I do know of someone that had money in the Bank of Cebu which went bankrupt last year and his 250.000 was returned in less than a month.
    This is fact and not pure conjecture based on ignorance or hearsay.

    Most high yielding investments or business ventures are high risk along with trading on the PSE etc. Your capital can be wiped out in a single day without recourse or refund.
    Investors know the risks before they invest.

    I`ll ask again. Does anyone know of any investor not recieving his deposit back (up to 250K limit) from PDIC on bank closure ?
    Answer that convincingly and you may well have a case for using the word "risk" when addressing this rural bank product.*okay*
    very nice story, but im not convinced, i can give you a dozen's stories that may conflicate your point of view, but you may not convinced as well by it. but hey wake up to reality, what im just tryin to say to fellow pexer's investors is to become aware of where to put their money. im not sayin that rural bank is bad, im just sayin the possibilities that might happen, as you said bank of cebu become bankrupt.
    the fellow that had return his money in less than a month might be a influential person. what about those ordinary people. as i have said the justice system in our country can be bought or manipulate by anyone influencially and financially.. how many of our ofw's have been victimized by some pyramid scam, they're still waiting for the justice that they deserve. some still waitin a decade or more. well i think its up to our fellow pexers where to put their money, where they most comfortable. if your confident about those rural bank fine, just wonder why even those big banks, like bdo and equi are merging. and i've heard that china bank would merge with them too.
    fact : rural bank possibility of bankrupcy is high.. you just gave an example above.
  • susmariosepsusmariosep Member ✭✭
    My apologies to guys here who are 'fed up' with me, for trying to find out more and more and more in details about risks in monetary placements.

    You know what? maybe in the end I will not put any money in any scheme of money earning money operation; but I would have had a good time and an enlightening one about how money makes money, and what are the risks inevitable bigger or smaller in every combination possible.

    Right now, I am really enriched by the opinions and information and knowledge and experience from people who really want to share, even though at the risk of losing their patience over some wishy washy guy, and his never ending rumination and further exploration from fellow members here about big easy quick safe money.

    So, to apapito specially and another one here who has the same assessment about my wishy washy character, just be tolerant; if you have anything more to offer here of your knowledge and experience aside from being annoyed with my wishy washy brooding, then let's have it.

    What about telling us how you were 'lucky' to have made money with money, just doing some documentation work, turning over your money to another party, and waiting, and of course having calculated the risks and having made the right conclusion that the probability of gain is as high as say 80%, like a surgical operation where the doctor will assure the patient that he has an 80% probability of a successful operation which will improve his life, otherwise he would continue to deprive himself of so many activities a healthy person can undertake.


    ==================

    What have I learned in the last messages here? This one, that the PDIC is not really so reassuring a factor for neutralizing the risks in putting your money in banks.


    If you look up the PDIC website, you will read this statement from its FAQS:

    Q. What specific risks to a bank does PDIC cover?

    A. PDIC covers only the risk of bank closure ordered by the Monetary Board. Thus, bank losses due to theft, fire, closure by reason of strike or existence of public disorder, revolution or civil war, are not covered by PDIC.

    http://www.pdic.gov.ph/faq.asp

    So, I have another thread coming up, aside from that one about collecting news where we can read about the promotions launched by banks offering bigger interests than customary; this one about when and how and under what circumstances will the Monetary Board close a bank and thereby the PDIC would reimburse frustrated depositors.

    =============

    Again, my apologies to agapito and everyone else who are annoyed with my never ending inquiries about the big interest on the one hand and not being receptive to the idea of risks on the other. In fact, I am receptive to the idea of risks, that is why I am trying my most to learn how to reduce them to the barest minimum; how? by getting additional and more extensive information, knowledge, and opinions born from experience of members here who also like myself love to write messages.

    =============

    Tip to guys here who are in the business of selling anything or any service: You have got to keep explaining the benefits of owning something or getting the service of some experts, to your prospective customer or client.

    If your merchanise or service is truly more benificial and desirable, and you can convince your listeners that there is the highest probability of their life improving or getting more enhanced with that product or service than otherwise; then, as I said above, like a doctor promising his patient that an operation for the patient has 80% or more probability of success, the customer will buy your product or your service.


    Ah, yes, no one is selling nothing to no one here, least of all to one Susmariosep; but guys who are into selling, here is the place to practice.


    Susmariosep
  • susmariosepsusmariosep Member ✭✭
    turmoil wrote: »
    From agapito:
    Everybody here has been telling you that your "double-your-money" scheme is very risky.

    Could "Everbody" or even just you please explain why depositing P250.000 in a rural bank 5 year TD is "risky" when it is obviously insured by PDIC?
    Have you heard of a bank registered correctly with PDIC that has gone bankrupt and depositors cash (up to the insured amount) not being returned?
    Its very easy to be sceptical but not always so easy to justify your skepticism..
    Lets see.
    Btw. I agree with your assessment of the shall I?- shan't I? guy.*okay*

    Actually I have learned and have ascertained the facts to a huge extent from since twenty days ago when I read about the 20% interest of rural banks with interest payable monthly, tax exempt, and risks covered by the PDIC.

    Here were my doubts and how they have been resolved to a good measure:
    1. 20% interest per annum -- there is no law prohibiting any bank from giving high interests; yes, that's true.

    2. Rural banks make money lending to small borrowers charging them 3% to 4% per month; which explains how they can offer 20% interest per annum. That is perfectly logical, and even encouraged by law, to help the countryside folks to go into entrepreneurial undertakings.

    3. If you put just 125,000 pesos in time deposit of five years, then should the bank fold up (outside of theft, fire, flooding, strike, civil war, revolution), the PDIC will pay you back up to 250,000 pesos on the balance of your deposit in the closed bank.

    4. Your interest is tax exempt by law if you let it stay for five years and one day without any interruption; yes, that is true.

    5. You can withdraw your monthly interest during the five years period, then it is not tax exempt, but the bank will shoulder the tax -- that is the additional incentive.

    6. At any rate, you stand to have your original money doubled - or more than doubled by the completion of five years (as you will see below).


    Here is the simple arithmetic:
    125,000 x 20% x 5 = 125,000

    125,000 + 125,000 = 125,000 x 2 = 250,000

    If you don't withdraw your monthly or yearly interest, and the bank rolls back your interest to the principal, then you will even get more than double your money at the start:
    336,996,27 pesos
    ...... if the bank computes interest by each month,
    ...... and rolls back your monthly interest
    ...... to the principal.

    311,040.00 pesos
    ...... if the bank computes interest by each year,
    ...... and rolls back your yearly interest
    ...... to the principal.

    [Please correct my figures if you find them erroneous.]

    ==============

    So, what am I waiting for? Waiting to have saved at least 125,000 pesos, that I don't have to use to pay for the monthly expenses in a normal household and family -- that's why.

    So, in the meantime I keep up this topic of how to earn big easy quick and safe money with rural banks or banks offering the promotion of 20% interest on five years deposit; I even entertain the idea that maybe one day I can go into this business also, i.e., rural banking, just a dream but one very possible unlike dreams while in rapid eye movement sleep.

    And also very important, I keep very abreast of bank promotions, and with making up a list of rural banks keeping a solid reputation for integrity and dependability and fidelity to their depositors.


    No, I am not into pure wishy washy occupation, but into mastering the knowledge and expertise of big easy quick and safe money making money, by just signing some papers, turning over your money, and waiting for time to pass which certainly passes without fail, inexorably.


    Susmariosep
  • altairaltair The Flying Eagle PExer
    my guess is that you are just stirring up some interest so that you could make a sales pitch

    reminds me of the itinerant "medicine" peddlers who would show some sawa in the public square and then push some toothache remedy

    you always have this annoying disclaimer that you are not connected with the banks. That makes everything very suspicious.


    in short
    goyohin mo lelang mo!
  • turmoilturmoil Member PExer
    altair wrote: »
    my guess is that you are just stirring up some interest so that you could make a sales pitch

    reminds of the itinerant "medicine" peddlers who would show some sawa in the public square and then push some toothache remedy

    you always have this annoying disclaimer that you are not connected with the banks. That makes everything very suspicious.


    in short
    goyohin mo lelang mo!

    Now this post I just love!!
    This is the reason that these rural banks must offer 20% TD's and a major reason why they are not over subscribed..
    Healthy scepticism!!
    The rich get richer and the average? Well they just stay average.
    5% of my cash portfolio is set aside for high risk products and that is what I can afford to lose.
    Personally I will not invest ANY of this 5% in such a deposit as I do not consider it to be high risk at all.. Medium risk at the very worse.
    But that's only me,thank goodness!!

    susmariosep.
    You have done your research on this product and now its time to make a decision.
    IMO you should leave well alone as your attitude to any risk whatsoever is obviously extremely conservative.
    If you cant sleep at night worrying about an investment then best just keep your cash under your pillow and sleep with one eye open.;)
    Me? I sleep like a baby!:lol:
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