• Time Deposit

    The concept of Time Deposits as a savings/investment instruments is perhaps as old as the concept of banking itself. The popularity and appeal of this savings instrument continues till date and will remain as a popular choice of investment for the conventional as well as the new age investor.

    What is Time Deposit?

    A Time Deposit is a savings instrument that locks a certain amount of money for a fixed term with pre agreed terms and conditions laid out by the bank. Upon maturity(end of term), the depositor receives the principal amount with interest charges computed at a fixed rate. Depending on the plan chosen, the depositor is also eligible to receive monthly or periodic interest charges into the bank account. Also known as Term Deposit, the interest earning potential in this instrument is higher than returns disbursed by parking money in a savings(deposit) account.

    Time Deposit Rates

    Bank Product Name Minimum Initial Placement Term Interest Rates

    BDO Time Deposit

    Peso Time Deposit Php 1,000.00 30,60,90,180 and 360 Days Click Here
    Dollar Time Deposit USD 1,000.00 30,60,90,180 and 360 Days
    Dollar PRA Time Deposit As advised by PRA 30,60,90,180 and 360 Days
    Two Year Dollar Time Deposit USD 50,000.00 2 Years
    Three Year Dollar Time Deposit USD 50,000.00 3 Years
    Five Year Dollar Time Deposit USD 50,000.00 5 Years

    BPI Time Deposit

    BPI Regular Time Deposit Php 1,000.00 35,63,91,182 and 364 Days Click Here
    BPI Family Savings Bank Time Deposit Php 1,000.00 35,63,91,182 and 364 Days
    BPI Direct Savings Bank Time Deposit Php 1,000.00 35,63,91,182 and 364 Days
    US Dollar Time Deposit Rates Php 1,000.00 35,63,91,182 and 364 Days

    China Bank Time Deposit

    Regular Time Deposit Php 5,000.00 3 and 6 Months Click Here
    Diamond Savings Account Php 50,000.00 1,2,3 and 6 Months
    MONEYLIFT - Quarterly Php 50,000.00 Quarterly
    US Dollar Time Deposit USD 1,000.00 1,2,3,6 and 12 Months
    Euro Time Deposit Euro 1,500.00 1,2 and 3 Months

    CTBC Time Deposit

    Peso Time Deposit Php 1,000.00 1,2,3,6 and 12 Months Click Here
    US Dollar Time Deposit USD 1,000.00 1,2,3,6 and 12 Months

    Landbank Time Deposit

    Peso Time Deposit  Php 1,000.00 Minimum of 30 days and Maximum of 360 days Click Here
    Dollar Time Deposit USD 1,000.00 Minimum of 30 days and Maximum of 360 days

    Maybank Time Deposit

    Classic Time Deposit Php 25,000.00 Minimum of 31 Days and Maximum of 359 Days Click Here
    ADDvantage Flex Time Deposit Php 50,000.00 1 and 2 Years
    ADDvantage Advance Time Deposit Php 50,000.00 1 Year
    ADDvantage 5-Year Time Deposit Php 50,000.00 5 years plus 1 day
    Flexi Rate Deposit Php 50,000.00 Minimum of 31 Days and Maximum of 359 Days

    Metrobank Time Deposit

    Peso Regular Time Deposit Php 10,000.00 30, 60, 90, 180, and 360 Days Click Here
    US Dollar Time Deposit USD 1,000.00 30, 60, 90, 180, and 360 Days

    RCBC Time Deposit

    Peso Time Deposit Php 5,000.00 30, 60, 90, 180, and 360 Days Click Here
    Dollar Time Deposit USD 1,000.00 30, 60, 90, 180, and 360 Days

    Sterling Bank of Asia Time Deposit

    Prima Time Deposit Rates Php 1,000.00 1,2,3,6 and 12 Months Click Here
    Prima Dollar Time Deposit Rates USD 1,000.00 1,2,3,6 and 12 Months
    Maxima 5 Long Term Deposits P25,000.00  5 years and 1 day

    Why to invest in Time Deposit?

    The benefits of investing in Time Deposits are many and risk free since the principal and fixed returns are guaranteed at the end of term. Let us look at the various benefits of parking your hard earned money in these instruments.

    Delightful Returns

    Since Time Deposits are not directly linked to market funds, it assures definite returns during or at the end of the term. The interest charges are definite and do not come with any strings attached. The interest value may not be phenomenal, but pleasing enough to consider this option anytime you have surplus funds. Based on the term and offers from the bank, you can earn interest charges at the rate of 1 to 5 percent.

    Helps in Mobilizing Savings

    A one of its kind savings instrument in the market that probably finds no match, Term Deposits helps in planning key events in life at ease. It also fulfills your savings goals, both short and long term. If you’re looking for a sure shot returns deposit plan, invest in this deposit option and look forward to earning interest charges along with the principal amount.

    Keeps Your Money Safe

    Unlike other market linked investment plans where the money is exposed the market turmoil, which will have a definite impact on the principal amount, a Term Deposit keeps your money secured it is not linked to the performance of a market linked fund. This way, you can invest, relax and be assured of full returns upon maturity.

    Flexibility to Choose and Modify Terms

    Be your own investment guru by exercising freedom to select and alter basic terms such as the term of deposit, frequency of interest disbursal’s etc. As a well informed depositor, you can asses your periodical requirements and choose terms that suit you the most.

    Best Apparatus for Planning Financial Goals

    Major and minor events in life require financial stimulus. Key events such as marriage, child’s education, house purchase are largely answered by monetary resources. However, mere savings in bank may not fulfill the need. Therefore, if you received a bonus or have surplus monies parked in bank, invest them in Time Deposits so that your hard earned money is locked for a certain period. Careful planning will ensure that you invest the right amount, redeemable when the event occurs.

    Acts as Collateral For Loans

    Monies held in Time Deposit instruments can be pledged as collateral when you borrow loans such as car or home. It secures your loan in a longer run and ensures that you never run out of collateral options when needed.

    Types of Time Deposits in Philippines

    Currency Based Options

    In Philippines, most of the banks and financial institutions let you deposit in leading currencies that includes US Dollars apart from Peso. The flexibility to choose a currency of your choice also ensures optimised returns if it the currency is valued high.

    Based on Terms of Placement

    Short term deposit options generally start at 30 days to 1 year(lock in period) whilst long term deposit options starts from above 5 years and can go up to 6 years. Longer the term, higher the benefits.

    Tax Saving Time Deposits

    Based on the term, some of the Time Deposit options extend tax benefits, provided you do not make premature withdrawals before the maturity.

    Features of Time Deposit

    Basic Documentation: Unlike other investment instruments that requires heaps of documents and paperwork, a time deposit mostly requires only a form and can be opened in the hassle free manner in little time.

    Freedom to Invest as much as you want: Basic Time Deposit insurance plans do not come with any cap of how much you can invest. Therefore, you have greater freedom to choose an amount of your choice without any restrictions as your budget permits.

    Appeals to all Classes of Investors: An instrument highly regarded by a rookie as well as an expert investment advisor, Time Deposit is a humble product that is accepted by all types of investors due to optimal and assured interest earning feature. Compared to other products of similar functioning, Term Deposits are immensely popular with the masses.

    Easy-To-Understand Terms & Conditions: Comes with no strings attached. The terms and conditions can be easily comprehended even by a beginner who has minimal knowledge about the banking segment and its deposit options.

    Eligibility Criteria to Open Time Deposit

    A legal citizen of Philippines with an active bank account is eligible to apply and run a Term Deposit account. When it comes to eligibility, not many conditions are set by banks since it is a simple product that is accessible to all.

    Time Deposit Requirements

    • A savings bank account for transacting
    • Govt. issued documents for identity and address proof
    • Any other paperwork, depending on the bank’s requirement

    FAQs for Time Deposit

    1. I have a couple of Time Deposit accounts that I wish to close before the maturity. Is this possible?

      Most of the banks allow premature withdrawals that comes with a certain monetary penalty calculated on the outstanding balance. Please check with the bank for further information.

    2. What is the maximum tenure one can avail for securing a Time Deposit?

      Completely depends on what the bank has to offer. From what we know, terms for Time Deposits can stretch up to 5 to 6 years.

    3. Is there a processing fee charged by the bank when I approach them for opening a Time Deposit account?

      No fee or charges are applicable for opening Time Deposit accounts as long as the deposit amount is within the limits.

    4. Are there any plans in Time Deposits which pay interest on a monthly basis?

      Yes, there are options where you can receive interest charges on a monthly or quarterly basis depending on the product offering. You can read more about products offered by exploring the banks under the Time Deposits section of this website.

    5. Can Time Deposits be used for tax exemption?

      Yes, you can. Some long term deposit options give you the benefits of tax exemption at the time of declaration.

    News About Time Deposit in Philippines

    • BSP to Offer P30 Billion at Term Deposits Maiden Auction

      Philippine central bank has decided to offer $641.64 million (P30 billion) at the term deposits maiden auction, which will be held on 8th June, 2016. The Term Deposit Auction Facility (TDF) is provided to emphasize the importance of the overnight borrowing rate. The central bank plans to introduce a rate corridor system that will make way for effective policy transmission. The TDF is a component of this system. Through this system, 7 days and 28 term deposits will be offered. Depending on the liquidity, longer tenure of deposits may be offered in the future.

      27th May 2016

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