Time Deposits in Philippines
In Philippines, term deposits, fixed deposits or any document related to a deposit product are collectively termed as Time Deposits. It is a bank account type option for customers to keep their remaining additional money (after budgeting) safe and secure for future as well as for returns. Time deposits come with a contracted period and a percentage of interest that will enable the user to pledge it for loans. Moreover a time deposit that bears interest is estimated in Pesos and this exchange gives a higher interest rate payable when the tenure ends than a regular Philippine savings account.
Asia United Bank Time Deposit
Asia United Bank Time Deposit offers a range of deposit options in Philippines. Along with time deposits, the bank provides current, savings, as well as currency deposit accounts such as vehicle loan, housing loan, salaried account and business loans. With various services and schemes such as money management services, investment schemes (treasury and trust), free card transaction, business financing, real estate deal assistance and many others, AUB, based in the Pasig city of Philippines, has achieved a prolific growth in a span of 15 years. Currently it boasts of 163 offices in the nation and is one of the premiere banks in the country.
Like any account, AUB Time Deposits come with certain terms and conditions. You need to deposit at least a thousand phps as the first deposit when you open the account though there is no rule that you need to maintain a minimum balance in the account. But unless there is a minimum sum of 1000 phps in the account, the time deposit will not earn you any interest. Interest rates are subject to change as per the market rates, but not during the tenure. Doing your homework about the current trends can tell you the pattern of these fluctuations, which will help you make the right decision. But the interest will be credited only once the term expires.
Advantages of Having an AUB Time Deposit
You can save up to 20% tax if you opt for a time deposit in Asia United Bank. Request for an appointment with the concerned bank officer and all these information regarding tax and investment funds can be availed. Since AUB actively encourage its own officers to invest in their products including time deposits, every staff is bound to be an expert in the subject. Term deposits usually offer relatively higher interest rates since the deposits are put in the account for a pre-determined time duration and this enables the bank to use the funds for other investment options with higher returns (for eg- re-lending).
Another advantage of Time Deposit is that it is easy to get started and less complicated. You get to know in advance how much you are going to receive as interest at the end of the deposit term. The frequency of interest payment is totally up to you based on the deposit term. And yes, profit is guaranteed with few risks involved. You may get the interest disbursed by cheque, get it transferred to your account or finance it out for accrued interest. Since you cannot touch this money before the term, it is a sure shot future investment.
Asia United Bank TD Tenure
The lowest tenure offered by AUB is normally a month. A choice of tenures (2 to 12 months) are available. AUB has also announced longer-period (3 to 6 years) time deposits recently that have become an immediate success. In fact you can decide the tenure yourself now. It is highly recommended that you do not go for a time deposit unless you are quite sure. See that you have other dependable options in case of contingencies because breaking a time deposit before the maturity date totally fails the purpose. AUB does allow early withdrawal but you will be required to pay hefty penalty fees including release charges depending on how much time is remaining to complete the term.
All these say that there are benefits and downsides of choosing to save in a time deposit. But the drawbacks are considerably lesser compared to other products. But it is important to make an informed decision and AUB has the reputation of being one of the most customer-friendly banks in the country. They take time looking through your personal and employment details to guide you accordingly.
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