EastWest Bank Time Deposit – An Overview
If you are looking for an investment option that gives assured returns and comes with no risk, time deposits are the best bet. Time deposit is a type of savings account in which money is deposited for a pre-agreed period of time and a fixed interest rate is paid at the end of the period. EastWest Bank time deposits will let you earn a healthy sum as interest on that extra money placed in your bank account.
About EastWest Bank
EastWest bank was established in the year 1973 to serve the financial needs of Chinese Americans in Los Angeles. Today, rated as one among the top 20 banks in America by Forbes, EastWest Bank operates in over 130 key locations worldwide. In the Philippines, EastWest Bank was established in the year 1994. True to its name, the bank brings together the philosophies of East and West to offer traditional and modern banking channels to its diverse clientele. After launching its aggressive expansion plan in 2012, EastWest Bank now has over 250 branches in the Philippines.
Features of EastWest Bank Time Deposit
- Evidenced by a certificate of time deposit, EastWest Bank offers tenures ranging from 30 to 360 days.
- EastWest Bank offers attractive interest rates for time deposits that are based on the tenure and amount deposited. Clients are assured of yields higher than the saving account rates.
- Minimum initial deposit is only P10,000. This gives the flexibility for anyone who has some extra money stalled in their account to open a time deposit with EastWest Bank.
- Funds are insured with the Philippines Deposit Insurance Corporation (PDIC) up to a maximum amount of Five Hundred Thousand Pesos per depositor.
- EastWest Bank also offers standby credit facility for time deposits. Time Deposits can be used as a loan collateral.
Benefits of EastWest Bank Time Deposit
- Investing in Time deposit schemes gives better returns as compared to savings account because time deposit has higher interest rates.
- Time deposits are a very popular method of investment because it has no associated risk factor. You are guaranteed of your principal and the interest amount as returns.
- Time deposits have good liquidity because you can invest your money in a time deposit account for tenures as low as 30 days. The principal and the returns can be withdrawn in a couple of days.
- Time deposits with EastWest Bank encourages you to invest the money for a period of time and leave it untouched. This helps in saving for the future and in better personal financing.
Types of Time Deposits Offered by EastWest Bank
In its Term Deposits portfolio, EastWest offers two different types of options on the basis of the placement currency. They are as follows.
- Peso Time Deposit
- Dollar Time Deposit Account
The section below throws further light on each of the products.
1) Peso Time Deposit
This option lets you place monies in Pesos and offers a term from 30 - 360 days. A certificate is handed out as a proof of remittance. The minimum initial deposit required under this option is P10,000.
Some of the benefits of this product have been provided below.
- It rewards the depositor with high interest rates and provides assured returns upon maturity. The rates offered are higher than savings accounts rates.
- It helps the depositor in meeting short and long terms goals that need a financial impetus since the principal amount remains secured through our the term. At the end of term, the depositor has a clear cut picture of how much he/she would be receiving.
- The certificate can also be used to avail loans and other credit products. It serves as a collateral to secure the borrowed amount and thus has a dual benefit.
- EastWest offers complimentary insurance of up to P500,000 by PDIC.
Rates & Taxes
- Interest rate is determined on prevailing market rates.
- A Withholding Tax of 20% is applicable.
- DST at the rate of P1.00 for every P200 for terms greater or equal to one year.
- DST is applied on a pro-rata basis for deposits with a term of less than one year.
2) Dollar Time Deposit Account
Under this deposit option, the depositor can make a deposit in US Dollar and earn the best returns as it offer higher rates for investing in this Dollars. The minimum initial deposit required is $1,000.
The benefits of this product has been detailed below.
- US Dollar Deposits can be used as collateral to secure loans such as Personal & Housing. The deposit certificate acts as a collateral to secure the loan amount.
- It offers hedge against Peso devaluation. The funds remains in the account as Dollars and can be accessed in the same currency.
- No service charges are levied for this type of TD. EastWest does not impose a monetary penalty for premature withdrawals.
- EastWest offers complimentary insurance of up to P500,000 by PDIC.
Rates & Taxes
- Interest rates are determined on prevailing market rates.
- A Withholding Tax of 7.5% is applicable on the maturity amount.
It is very easy to open a time deposit account with EastWest Bank with minimal paperwork. The list of documents required usually vary depending on the nature of employment of the applicant. Also, if the applicant is an existing EastWest Bank account holder, some of these documents may be waived. Here are some of the documents that you must have for opening a time deposit account with EastWest bank.
- For salaried professionals
Salaried professionals need to submit a copy of duly filled application form along with two valid ID’s with authorized signatory.
- For corporations and businesses
Certificate of business registration, articles of incorporation, proof of business ID and address, valid ID cards of all signatories need to be submitted along with completely filled application form.
- Self-employed individuals
Self-employed individuals need to submit certificate of business registration, articles of co-partnership and incorporation (whichever is applicable) and valid ID cards. Application form is to be completely filled and attached with all the necessary documents.
EastWest Bank Time Deposit Interest Rates
The rate of interest offered by EastWest Bank on Time Deposits is one of the most competitive in the country today, determined by prevailing market conditions. Based on the product you and the currency, the interest earnings varies. If you’re choosing a higher term, the interest earnings get better. Deposits in foreign currencies such as US Dollar will fetch you higher returns than Peso.
For example, if you decide to invest in US Dollars under the Dollar Time Deposit Account option for a maximum tenor of 360 days, the accumulated interest charges are high. Details of latest rates for Time Deposits can be obtained from the nearest EastWest branch.
|Check out the Interest Rates for EastWest Bank Time Deposit|
FAQ’s about EastWest Bank Time Deposit
- What is the minimum amount that is required to open an EastWest Bank Time Deposit account?
- Can I withdraw the principal before the tenure ends?
Yes. But you will be required to pay a penalty if you choose to withdraw the money before the tenure ends.
- What are the interest rates offered by EastWest Bank on time deposits?
EastWest bank offers competitive interest rates based on the tenure that you select and the amount of money that you choose to invest. Usually, it will be higher than the prevailing interest rate for savings account.
- How do I withdraw the time deposit maturity amount?
You can access the fund through a withdrawal slip over-the-counter (OTC).
- What is the withholding tax for EastWest Bank time deposits?
The withholding tax is 20%.
- How much will be charged as Documentary Stamp Tax (DST)?
Documentary Stamp Tax is pro-rated for terms less than one year. For terms equal to or greater than one year, P1 for every Php200 or a fraction thereof is charged as DST.
EastWest Bank time deposit helps you make a smart financial investment that will give you assured returns. Take a giant step towards a secure future with EastWest bank time deposit schemes.
The initial deposit should be at least PhP10,000.
Other Products from East West Bank
News About East West Bank Time Deposit
Forex Account Expanded by EastWest Bank
There has been an expansion in the foreign currency deposit services and products that are being offered by EastWest bank to accommodate the requirements of its clients, both individual and corporate. Chinese yuan and US dollar are currently a part of it. The products that are have been added are Japanese yen, euro and Singapore dollar.
Customers can now open time deposit and savings account in the above currencies in certain EastWest Bank branches for their investment, personal or business related needs.
This expanding portfolio enables customers to consolidate their accounts in just one bank and also customers who travel abroad regularly or receive remittances in the above particular currencies can receive interest on their deposit.
Customers of EastWest Bank can procure savings products in Japanese yen at economical interest rates whereas published rates are applicable for time deposits.
EastWest bank also owns 99.84% interest in Green Bank which is a rural bank.
09th February 2016