Have you ever wondered of investing your money in a form of savings? Investing in Time Deposit is the perfect choice whether you are an employee, businessman or ordinary citizen. With time deposit, you will not have access to your deposited money during the agreed time period of your choice whether 1, 2, 3, 6, 9 or 12 months in exchange for a higher interest rate compared to a regular savings account which help you not to spend the excess money to an unnecessary expenditure.

Moreover, this is a perfect avenue for a deposit for OFWs. Aside from getting the best investment interest rates, an OFW will also get a guarantee of interest earnings and safe-keeping for their money. For most conservative type of investors, especially for beginners, time deposit is a promising investment in keeping money with high-yield of interest.

1. How do time deposits work in the Philippines?

In the Philippines, time deposit is one of the types of investment which is risk-free that locks a certain amount of money in a specific period of time. Local banks do offer various deposit terms and each bank has been offering a competitive term. Other banks can offer to an extent of five to six years. Basically, the usual deposit tenure would depend on the depositor who has full control on the time deposit. But in general, the tenure lasts from 1 to 12 months only.

1.a Time Deposit Advantages

The most common advantage of time deposit is that it is perfect for a person who is afraid of risk. It might sound funny, but it is true. So, if you think you are a person who is risk-averse, time deposit is for you. The return of investment is short-term, thus, it s continuous and definitely predictable.

In case of emergency, it is easy to withdraw and close the account. All you have to do is to request to your local bank, for a minimal termination fee, you can get your money directly to your local savings account.

Time deposit requirements are easy to complete and comply to. The usual requirement is just 2 valid IDs and the initial deposit. From there, you will choose the term.

2. Is Time Deposit a high-yielding return of investment?

Although you are not directly engage in profitable business ideas and ventures, time deposit is absolutely matches to a personality of first-timers who are longing to have a safety deposit account with the assurance of high-return of investment.

2.a. Risk of Time Deposit

Hence, the risk of time deposit is very minimal as well. The only risk is that, if you intend to immediately withdraw it real-time, it may not be possible since normal termination is within 2 days or so subject to a minimum pre-termination fee. Likewise, if a depositor does not have a regular savings account, he must open a new account or request to issue a check.

Fees and charges are deducted to the interest earnings which is 20% for each month or whenever a time deposit earns an interest. Aside from this, there is also a stamp duty if the deposit exceeds ₱250,000.00 and you will be charged P1 for every ₱200.00 after it.

3. Is time deposit a one-time open of account?

A time deposit is a continuous bank account. A depositor may choose to continue and add more deposit by requesting it to the serving bank. Normally, the request is not anytime. More often, a depositor should notify the bank of his intention of extending and depositing additional before the time deposit gets matured. The basic rule of time deposit is you can earn if you deposit for a longer period of time. International banks can also offer OFW investment tips abroad through seminars or online webcast.
To provide you quick details on how much money grow in time deposit, here is the 5-year time deposit tabular representation.
Minimum of P10,000 Time Deposit

BanksTerms (Months)Interest Rate (%)
1. Security Bank Peso TD1
3
6
12
24
60
 0.75
0.88
1
1.20
1.20
1.20
2. Chinabank Diamond Savings1
3
6
12
24
60
0.63
0.75
0.88
0.88
3. Maybank Classic TD1
3
6
12
24
60
0.60
0.60
0.75
0.75
4. UCPB Peso TD1
3
6
12
24
60
0.50
0.50
5. Union Bank Peso TD1
3
6
12
24
60
0.38
0.48
0.58
0.63
6. BDO Peso TD1
3
6
12
24
60
0.38
0.38
0.63
0.63
7. Landbank Regular Peso TD1
3
6
12
24
60
0.38
0.50
0.50
0.63
8. Metrobank Peso Regular TD1
3
6
12
24
60
0.25
0.25
0.50
0.50
9. BPI Family Savings Regular TD1
3
6
12
24
60
0.25
0.58
0.44
0.50
10. BPI Direct Savings Regular TD1
3
6
12
24
60
0.25
0.38
0.44
0.50
11. BPI Regular TD1
3
6
12
24
60
0.25
0.25
0.44
0.25

Conclusion

Time deposit is a perfect type of no risk, yet, high-yielding interest rate which is advisable to venture to for conservative and risk-averse depositors. If you are an OFW, local employee or a regular citizen who wants to keep your money without intending to withdraw it over a period of time, time deposit is the best savings method to open to. Interest earnings will vary depending on the term chosen and the amounts to be deposited. As a depositor, you will be given an account number and the certificate of deposit as a proof of your deposit.

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