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LBP’s high-yield TD for OFWs & relatives (‘til May 16, ’08)

alvintabzalvintabz RegisteredFinancialPlanne r PExer
Good news to OFWs and their relatives. You can now place your hard-earned money in a high-yielding time deposit product. The Land Bank of the Philippines (LBP) launched last week the Long-Term Negotiable Certificate of Deposit (LTNCD) which is being offered to OFWs and their relatives up to the third degree from April 28 to May 16, 2008.

The LTNCD will be issued in units of P20,000 with a maturity period of 5 1/2 years. It will be sold at a discount rate of 7%. This means that an investor only needs to invest P13,699 for every LTNCD unit. After 5 1/2 years the investor will the get the full amount of P20,000. Each investor is limited to a maximum investment of P250,000 (based on the maturity value), which is equivalent to an actual investment of P171,237. All investments are insured by PDIC and tax-free as long as you keep it until maturity.

The offering of the LTNCD is very timely because alternative investment products with high-yield potential are not doing well. Mutual funds, which had a great run last year, are being battered this year. So far, 70% of mutual funds are down; some are down by more than 20%. If you invested P100,000 in one of the equity or stock funds in January 2008, your capital would have been reduced to about P80,000 as of May 2.

With the LTNCD you will be able to lock-in a fairly high interest rate of 7% that is guaranteed for the next 5 1/2 years. Take note that the best performing mutual fund so far this year only managed to grow less than 2%. And we cannot safely predict that it will continue its positive growth; it could likely end in negative territory by year-end.

The LTNCD will be available in all branches of Land Bank and HSBC until May 16, 2008. If you are not an OFW, there’s a good chance that you are relative of one of the 8 million Filipinos working abroad. Relatives that can avail of the LTNCD are children, grandchildren, parents, brothers and sisters, nephews and nieces, grandparents and uncles and aunts of OFWs. Investors are required to present a proof of overseas employment (OWWA Card, Employment Contract, PDOS Certificate, etc.). In addition, relatives are required to present proof of relationship with the OFW (marriage contract, birth certificate, notarized undertaking of relation to OFW, etc.).

Learn more about Land Bank’s LTNCD go to

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  • alvintabzalvintabz RegisteredFinancialPlanne r PExer
    5 days to go before offering of LTNCD ends on May 16 (Fri).

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