Time Deposit Rates of Banks in the Philippines

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.

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