Are you planning to invest your money even with a small amount? Yes, it is possible through the Retail Treasury Bonds offered by the Philippine Bureau of Treasury. The good thing about investing in RTB is that it is guaranteed secured because you’ll be dealing with the government. Thus, your investment is both personal and social. You won’t only earn interest income but also contribute funding for the government’s projects.
In an announcement by the Bureau of Treasury, the 22nd tranche of the RTB has a 6.25% interest rate per year.
Is it safe and secure to invest in RTBs?
The Retail Treasury Bonds are higher-yielding, low-risk, and affordable investment option. It is default or risk-free because the investor will invest in the government. The interest rates are lower as compared to other investments. Anyone can afford to invest in RTBs for as low as Php5,000 and increase thereafter in multiples of Php5,000.
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Individual investors or corporations can purchase and invest in RTBs. The 22nd tranche of RTBs will be available starting February 26 to March 8, 2019.
Here’s how you can apply for RTBs:
- Go to the nearest bank and inquire if they offer RTBs. Make sure you have a Philippine Peso Account to qualify.
- Fill out the forms and submit the necessary requirements.
- The principal cost is deducted directly from your account. The interest rates are also credited into your bank account every quarter until the maturity of the investment.
How you can make money from retail treasury bonds?
Individual investors can acquire RTBs from trust companies, banks, and other institutions having RTB allocations. Once you receive the RTB allocation, you can expect to receive quarterly income from your investment in retail treasury bonds. However, the total amount of interest that you will receive is reduced due to the withholding tax.
Interest Rates Retail Treasury Bonds
4.875% Rate after 3 years
| Amount of Investment | Interest after 3 years |
| ₱5,0000 | ₱585.00 |
| ₱10,000 | ₱1,170.00 |
| ₱15,000 | ₱1,775.00 |
| ₱20,000 | ₱2,340.00 |
| ₱25,000 | ₱2,925.00 |
| ₱30,0000 | ₱3,510.00 |
| ₱35,000 | ₱4,095.00 |
| ₱40,000 | ₱4,680.00 |
| ₱45,000 | ₱5,265.00 |
| ₱50,000 | ₱5,850.00 |
| ₱100,000 | ₱11,700.00 |
| ₱200,000 | ₱23,400.00 |
| ₱300,000 | ₱35,100.00 |
| ₱400,000 | ₱46,800.00 |
| ₱500,000 | ₱58,500.00 |
| ₱1,000,000 | ₱117,000.00 |
source:treasury.gov.ph