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PDIC Deposit Coverage

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Comments

  • wandawomanwandawoman Banned by Admin PExer
    when will this be implemented? or its taking effect na?
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    When the President signs it.
  • jumpjump Pogi Ako PExer
    I heard that the new charter of PDIC calling for the increase in insurance of deposits to P250,000 was already ratified by congress. Was this already signed by the president? When will this be effective?
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    RA 9302. Signed into law yesterday. Increased coverage takes effect 12 August 2004.
  • Barok5Barok5 Member PExer
    Does anyone have a copy of the new law? I heard it discourages deposit splitting (i.e. allocating, say P400,000, to several joint accounts so that all of it will be insured).
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    Don't have the full text of the law, but I read this from the PDIC website:
    The law also promotes greater market discipline as depositors are deterred from splitting large deposit balances in a bank to get around the insurance limit. The new ceiling is now to be applied on the sum of all the shares of a depositor in all joint accounts in a closed bank. Furthermore, depositors will no longer be attracted to abnormally high interest rates. PDIC as receiver now has the authority to reduce interest rates due depositors in closed banks to within industry average.

    It looks like it's more difficult to do deposit splitting, so you're left with the next best thing: bank splitting.
  • florenofloreno Miyembro ✭✭✭
    wala lang...napapanahon kasi (First Savings Bank)

    :)
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    First Savings depositors will be the first to claim under the increased coverage (P250,000 per depositor).
  • simpleonlysimpleonly Member PExer
    Originally posted by Barok5
    Hello fellow Pexers,

    I have Php65,000 in a time deposit account that matures in 5 years to Php100,000.

    wow! your account earns approx 11% per annum interest - net of w/tax - that is really good..
    if you won't mind me asking, which bank is that and also those that you mentioned in your previous posts (20%; 8%; tax exempt etc)?

    Thanks..
  • Barok5Barok5 Member PExer
    Check out Chinabank, LBC Bank and UCPB
  • simpleonlysimpleonly Member PExer
    Originally posted by Barok5
    Check out Chinabank, LBC Bank and UCPB

    thanks :)
  • rachoracho Member PExer
    Bank Splitting... I've always thought of that. I have accounts in several different banks.. not different accounts, different banks. But then it's quite difficult to keep track of them, so I reduced it to just 3 or 4 banks at the moment. heheh.
  • susmariosepsusmariosep Member ✭✭
    Can anyone tell me how if indeed they can do it: rural banks can pay 20% per annum, tax exempt, pdic convered, five years maturity, interest payable every month; so that it is double your money after five years: on say a deposit of one million pesos, you get two millions plus. See this internet link:

    Rural banks under the Legacy Financial Group offering 20% p.a.
    http://www.pinoymoneytalk.com/forum/index.php?topic=4621.0


    How come big commercial banks can't or won't do the same?

    What do you guys say?


    Susmariosep
  • theprofessortheprofessor Member PExer
    Hi susmariosep, it's all yes answers to all your questions. The reason commercial banks cant give that is because they are dependent on prices of bonds while rural banks are specializing in the governments program of microfinancing on Small & Medium Enterprises (SMEs) (see Entrepreneuer magazine August 2006 iisue). Rural banks also get very good tax incentives from BSP on this program. I have studied this for the past 3 years together with my MBA students ( 1 in fact is now connected with BSP ). If you wish to get a copy of the Frequently Asked Questions (FAQ) email [email protected] This can be thoroughly discussed to the detail.
  • susmariosepsusmariosep Member ✭✭
    Rural banks must be making good money and quick with this 20% interest scheme.


    So, what is preventing big secure commercial and universal banks like Banco de Oro from putting up rural banks and going into the same act, to the benefit of both their clients and themselves and of course the people served by rural banks?

    Any law against big secure commercial universal banks setting up also several rural banks?

    If I control a big secure commercial universal bank I would undertake this idea; for then my clients would be more reassured that their money is safe and productive, more profitable than deposited in the standard commercial universal banks.


    Susmariosep
  • metropolitanmetropolitan the truth hurts, does it? ✭✭✭
    Can anyone tell me how if indeed they can do it: rural banks can pay 20% per annum, tax exempt, pdic convered, five years maturity, interest payable every month; so that it is double your money after five years: on say a deposit of one million pesos, you get two millions plus. See this internet link:

    Rural banks under the Legacy Financial Group offering 20% p.a.
    http://www.pinoymoneytalk.com/forum/index.php?topic=4621.0


    How come big commercial banks can't or won't do the same?

    What do you guys say?


    Susmariosep

    i've been rural banking since 2001, since then i have no regrets. i've also renewed by time deposit. i get a higher interest rate and better service. [meaning hindi snob ang mga tellers, officers at manager unlike some very big banks]

    rural banks give so much for time deposits because they charge so much for loans. while some rural banks can guarantee 20% p.a. tax-free their time deposits, their loans charge as high as 42% p.a. in interest. therefore, they charge so much for loans to afford that 20% interest for depositors.

    why don't you visit a rural bank in your area? they can answer your questions in full and better detail.
  • burmanburman tropical pomology PExer
    can you list all the rural banks in luzon?
  • burmanburman tropical pomology PExer
    metropolitan, so you mean when they attract depositors because of the 20% time deposit interest per year for 5 years, they use the money for borrowers then charge them for 42% per annum of interests? wow, rural banks are really making big money. 20% goes to there depositors and 22% goes to them.

    Can you give stable rural banks in Luzon especially Metro Manila or Central Luzon? Thanks
  • i want this. can someone give me the faq. this is a good investment.

    email me please [email protected]

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