In my previous post, I discussed about benefits of investing money in time deposit over putting all of it in savings account. Time deposit is famous among Filipinos and among US citizens because I think it is one of the safest investments since it is insured by the government up to certain amount.
Time deposit also guarantees sure earnings from cash you invested unlike stock market and mutual fund and you are sure to get back the money after a certain period normally 30 days, 90 days, 180 days or 1 year . The thing is you need to choose wisely the bank you will invest. Established banks like BPI, BDO, Metrobank and other PSE listed banks will definitely be the best choice.
In the US, time deposits or commonly known as certificates of deposits are maximize by using a strategy called “laddering.” It means spreading your money in CDs with different maturity dates, so that you get regular income from them. By doing this, you’re not prone to withdraw your time deposits prematurely and suffer from the penalties fees.
Below is the list of time deposit interest rates for different banks in the Philippines as of July 2010.
For P10,000-below P50,000:
BPI : 1.75% (35 days) ; 1.75% (63 days); 2.125% (91 days); 2.375%(183 days); 2.375% (364 days)
BDO: 1.875% (30 days); 2.75% (180 days); 2.875% (360 days)
Metrobank : 1.25% (30 days); 1.75% (90 days); 2% (180 to 364 days)
PSBank: 0.5% (30 days); 0.5% (90 days)
For P50,000-below P100,000:
BPI –- 2.0% (35 days); 2.0% (63 days); 2.25% (91 days); 2.50%(183 days); 2.50% (364 days)
BDO –- 2.25% (30 days); 3.25% (180 days); 3.375% (360 days)
Metrobank – 1.5% (30 days); 2% (90 days); 2.25% (180 days to 3.64%)
PSBank –- 1% (30 days to 90 days)
For P100,000-below P500,000:
BPI -– 2.125% (35 days); 2.125%(63 days); 2.375% (91 days); 2.625%(183 days); 2.625% (364 days)
PSBank –- 3.5% (30 days) –- 2.75% (90 days)
BDO –- 2.5% (30 days) –- 3.25% (180 days) -– 3.375% (360 days)
Metrobank — 2% (30 days) –- 2.5% (90 days) -– 2.75% (180 days to 364 days)
For P500,000 to below P1 million:
BPI –- 2.25% (35 days); 2.25% (63 days)
PSBank –- 3.75% (30 days) -– 3% (90 days)
BDO –- 2.5% (30 days) -– 3.25% (180 days) –- 3.375% (360 days)
Metrobank –- 2.25% (30 days) –- 2.75% (90 days) –- 3% (180 days to 360 days)
For P1 million to below P5 million:
PSBank –- 4% (30 days) –- 3.25% (90 days)
BDO –- 3.25% to 3.5% (30 days) -– 3.625% to 3.75% (180 days) –- 3.75% to 4% (360 days)
BPI –- 2.875% (30 days) -– 3.125% (90 days)
Metrobank -– 2.75% (30 days) –- 3.25% (90 days) –- 3.75% (180 days to 360 days)
Disclaimer: Banks change their time deposit interest rate frequently so it would be better to verify it to the bank.
Here are some reminders before you invest your money in time deposit:
1. Study and select the bank with the best interest rates.
2. Don’t invest all your money to time deposit, leave for emergency funds in your savings account.
3. Note that BPI has the best rates for deposits in the lower amounts but at P500,00 level, its rates are taken over by PSBank and BDO.
October 28th, 2010 at 04:52
salamat po sa info. may tanong lang po ako…
For P50,000-below P100,000:
BDO –- 2.5% (30 days) –- 3.25% (180 days) -– 3.375% (360 days)
ano po ang ibig sbihin nito? every 30days may 2.5 na interest?
November 6th, 2010 at 16:49
@jaja: the interest listed is per annum. generally, the formula for interest is (deposit x interest_rate / 100 / 360 x no_of_days) x 0.8 [for the w/tax]. for P50,000 deposit at 30 days, the interest is (P50,000 x 2.5 / 100 /360 x 30) x 0.8 = P 83.33. the formula may vary from bank to bank so better inquire first with your local bank.
November 13th, 2010 at 19:48
what are the usual requirements when applying for a time deposit?
Gil Reply:
November 14th, 2010 at 22:45
Hi Ronald,
Once you have a savings account in your bank, you can automatically apply for a time deposit provided you meet the minimum deposit.
November 24th, 2010 at 10:19
Hi mam Gil,
Ask ko lang po,noon ko pa po kasi gustong ipa time deposit ang savings ko sa BDO ang kaso nandito po ako sa labas ng bansa at sabi don ko lang pede ipatime deposit savings ko pag umowi ako jan satin totoo po ba yon?so pag totoo po un wala na po bang ibang way para maipa time dposit ko ang savings ko?your reply will be highly appreaciate.Thakns
November 25th, 2010 at 07:44
yun din ang problem ko before. buti na lng na met ko ung isang coop na mostly ofws ang members. bumili ako ng shares nila, nakapag invest ako s mutual funds at mag time deposit ako sa knila na ung rate eh 5-6% exclusive for members. madaming opportunities actually like co-owning a business. kung interesado ka or gusto mlang mlaman email lng me rhenzymalcobz@yahoo.com
July 27th, 2011 at 07:29
@Lester: ganun pala ibig sabihin ng 2.5% interest kala ko naman
for example 70,000 x 2.5% = 1,750 pesos for 35 days.. bigla akong nalungkot e.. nabasa ko lang kasi to, wala akong kaalam-alam hehehe
September 13th, 2011 at 10:15
formula of percentile exampla 1.75/100 x 10000=175 pesos in 35 days.. tama ba?
Anonymous Reply:
September 15th, 2011 at 03:22
Hi totop,
that’s right minus the withholding tax for time deposit, around 20%.
reggie Reply:
October 10th, 2011 at 08:02
P10,000 x 0.0175 x 30 /365DAYS= GROSS INTEREST
GROSS INTEREST LESS 20% TAX= NET INTEREST
October 3rd, 2011 at 05:17
ung total interest po ba ng TD ang pwede lang makuha ng member at ileless pa ng bank yung 20% tax? ganun po ba un?
October 3rd, 2011 at 05:20
at kelangan din po ba na regular o obligado ka pa rin na mag deposit for TD?
October 8th, 2011 at 02:42
Pwede po bang magdeposit ng mga 10 years or 20? Paano po ang gagawin dun? PAra po kasi sa pag-aaral ng mga bata
mrs. Kim Reply:
January 15th, 2012 at 14:43
hello po, im 24years old po, gusto ko rin sana mag TD para sa baby ko.
learnfe Reply:
January 16th, 2012 at 13:23
Hi Mrs. Kim,
You should study first time deposit here:http://learnfinancialeducation.com/category/time-deposit/ before you invest in it. There are other better alternatives than TD.
Silentbob_169 Reply:
January 24th, 2012 at 08:46
Hi Sir, kung gusto niyo po ng long term investment para sa bata meron po ako mai-ooffer sa inyo. I am connected with a Financial Services Company. Can I get your contact? You can email me at silentbob_169@yahoo:disqus.com
Hope to hear from you. Thank you.
December 25th, 2011 at 12:00
Thanks po sa Blog nyo
January 15th, 2012 at 14:41
hello po.. i would to know details about time deposit.
gusto ko kasi mag TD for my 4 months old baby.
hanngang mga ilang years kaya po pwede. advice please.
January 16th, 2012 at 10:52
Hi I work on a bank and one of my specialty is Time Deposit. If you have more questions, I might be of good help. Here is my contact programmerslodge@yahoo.com
March 17th, 2012 at 14:39
may tanong po ako nag time deposit kc ako nang 50,000 for 365 day magkanu poba ang interest nun sa bdo ako nag time deposit
learnfe Reply:
March 19th, 2012 at 11:47
Hi Dante,
The interest will be 2.25% in 365 days. So it will be, 50,000×0.0225 = 1,125 less 20% withholding tax. So approximately you will earn P900.