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

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

How to Open Time Deposit In China Bank Step-By-Step

China Bank is one of the leading financial institutions in the Philippines that is operating locally and internationally. If you are an OFW wanting to save without touching your money, choosing a Time Deposit account whether Peso or Dollar account abroad is a best choice for good investment. Not only you save your money well, but you can expect a very good promotion and offer with its best term deposit rates depending on the amount and the period making Time Deposit as one of the Smart Investments for OFWs like you.

CBC is very accessible nationwide. It is advisable to open a Time Deposit before going abroad for soon-to-be OFWs in this way, it would be easier for them to track and monitor their interest earnings and when their deposit becomes matured. For China Bank Time Deposit, there are three (3) types Time Deposit savings account, both Peso and Dollar account, namely: China Bank Certificate of Time Deposit, China Bank Diamond Savings Account and China Bank Money LIFT. Opening requirements are just the same and you can open at all branches nationwide.
china_bank_time_deposit.png

I. PESO TIME DEPOSIT

1. China Bank Certificate of Time Deposit

The minimum amount for this type of account’s initial deposit is ₱5,000.00 with a minimum term 90 days. Clients will be issued a Certificate of Time Deposit as proof and the interest rate is calculated annually, subject to 20% withholding tax.

Regular Time Deposit
Amount (Peso) 3 months
5,000 – 49,999 0.575%
50,000 – 299,999 0.700%
300,000 – 499,999 0.875%
500,000 – 999,999 0.950%
1,000,000 – 4,999,999 1.075%
5 Million & up 1.200%

Documentation: Certificate of Time Deposit
Access Points: Branch China Bank Online
Others: Option to automatically rollover your principal and interest at maturity date.
Placement is subject to Documentary Stamps Tax (₱ 1.00 for every ₱200.00 multiplied by the term, divided by 365 days)
PDIC coverage: Maximum deposit insurance for each depositor ₱500,000.00

2. China Bank Diamond Savings Account

Diamond Savings Account assures high-yield and it requires a minimum of initial deposit or placement of ₱50,000.00 for a minimum term of 30 days. Clients are issued a passbook under their name. Interest on this deposit is calculated annually and subjects to 20% withholding tax same as the first one.

DIAMOND SAVINGS ACCOUNT
Amount 1 month 2 months
50,000 to 299,999 0.375% 0.500%
300,000 to 499,999 0.500% 0.625%
500,000 to 999,999 0.625% 0.750%
1,000,000 to 4,999,999 0.750% 0.875%
5,000,000 & up 0.875% 1.000%

Documentation: Passbook
Access Points: Branch/China Bank Online
Others: Option to automatically rollover your principal and interest at maturity date.
Documentary Stamps Tax (DST) will be shouldered by the Bank if placement is not withdrawn before maturity date.
PDIC coverage: Maximum deposit insurance for each depositor ₱500,000.00.

3. China Bank Money LIFT

China Bank Money LIFT is offered by CBC only for individuals and has quarterly term deposit account. This means, it is a high yield account that can be combined with savings or checking account and the interest is credited to the client’s account quarterly. The interest for this account is not dependent on a final withholding tax as, on the condition that the account is not terminated before maturity. The initial deposit amount for this time deposit is P ₱50,000.00 and clients can do additional placements or deposits in multiples of ₱1,000.00. The term period for this account is fixed at 5 years and 1 day and interest is calculated annually.

II. US DOLLAR SAVINGS ACCOUNT

Below is the sample tabular computation and representation of US Dollar Savings Account.

US Dollar Time Deposit

Customers can avail a time period of up to 12 months.

The interest rate varies based on the term and the amount deposited.

Amount One Month Two Months
$1000 – $49,999 0.375 percent 0.375 percent
$50,000 – $99999 0.500 percent 0.500 percent
$100,000 – $299999 0.625 percent 0.625 percent
$300000 – $499999 0.750 percent 0.750 percent
$500000 – $999999 0.875 percent 0.875 percent
$1000000 and up 1.000 percent 1.000 percent

(continuation for reference)

Three Months Six Months Twelve Months
0.875 percent 1.000 percent 1.375 percent
1.000 percent 1.125 percent 1.500 percent
1.125 percent 1.250 percent 1.625 percent
1.250 percent 1.375 percent 1.750 percent
1.375 percent 1.500 percent 1.875 percent
1.500 percent 1.625 percent 2.000 percent

OPENING REQUIREMENTS

This is all applicable to all types of China Bank deposit accounts.

Basic Requirements

  • Two (2) 1×1 ID Pictures
  • Originals and clear copyies of at least one (1) of the following valid IDs*:
  • Passport
  • Driver’s License
  • Professional Regulations Commission (PRC) ID
  • National Bureau of Investigation (NBI) Clearance
  • Police Clearance
  • Postal ID
  • Voter’s ID
  • Barangay Certification
  • Government Service and Insurance System (GSIS) e-Card
  • Social Security System (SSS) Card
  • Senior Citizen Card
  • Overseas Workers Welfare Administration (OWWA) ID
  • Overseas Filipino Worker (OFW) ID
  • Seaman’s Book
  • Government Office and GOCC ID [e.g. Armed Forces of the Philippines (AFP), Home Development Mutual Fund (HDMF) IDs]
  • Certification from the National Council for the Welfare of Disabled Persons (NCWDP)
  • Department of Social Welfare and Development (DSWD) Certification
  • Integrated Bar of the Philippines ID
  • Company IDs issued by private entities or institutions registered with or supervised or regulated either by the BSP, SEC or IC
  • School ID, duly signed by the principal or head of the school (for students who are beneficiaries of remittances or fund transfers who are not yet of voting age)
  • Please note that China Bank may require you to present additional IDs to establish and verify your identity.

Additional Requirements

  • For Aliens and Non-residents to establish residency and for positive identification Passport, Alien Certificate of Registration / Immigrant Certificate of Registration (ACR/ICR), Contract of employment (for citizens only)

SEE ALSO: Smart Tips to Invest and Earn Money with Time Deposit

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