It is a smart idea to invest your money in a time deposit. But before making your decision you should understand that you’re not allowed to withdraw the money prior to the agreed period. The good thing is that your time deposit has a higher interest rate than the regular savings account. Thus, through time deposit you will learn to be thrifty and not to spend with unnecessary expenditure.
A time deposit is the best option for OFWs to invest their hard-earned money. It’s not only a good start to save but it is also a good way to keep your money securely not to mention the higher interest earnings.
How to invest time deposit in the Philippines
A time deposit is a form of saving investment that is risk-free. A specific amount of money is deposited for a period in a chosen bank. Many banks in the Philippines are offering time deposit with a high-yield rate and competitive term for up to six years. Generally, time deposit tenure may last for up to 12 months but may also depend on the depositor.
The advantage of opening a time deposit is that the requirements are easy to comply, and the depositor can choose for the term. Likewise, the depositor is also allowed to withdraw the money and close the account in case of urgency. But a termination fee should be expected.
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Good return on investment from time deposit
Saving your money in a time deposit is like investing in a business venture. You’re not engaging directly in a business, but you can earn a high return. Despite the advantages of investing in a time deposit, it also has its own share of risk yet minimal. The risk is that you cannot withdraw it unless for emergency case otherwise you will be charged for a pre-termination fee.
The interest rate may be higher, but you should also expect for some charges and fees deducted from the earned interest. Stamp duty is also charged if the deposit is more than Php250,000.00. The depositor will pay Php1 for every Php200.00 excess.
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Add more deposits in your time deposit account
The good thing about time deposit is that you can continue to increase your deposit. All you must do is to notify and request from your bank about your intention to make additional deposits before the maturity of your time deposit. If you will deposit your money for a longer time you can expect to earn more.
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Tabular representation of a 5-year time deposit
| Banks | Terms (months) | Interest Rate (%) |
| Security Bank Peso TD | 1 | 0.75 |
| 3 | 0.88 | |
| 6 | 1 | |
| 12 | 1.20 | |
| 24 | 1.20 | |
| 60 | 1.20 | |
| Chinabank Diamond Savings | 1 | |
| 3 | 0.63 | |
| 6 | 0.75 | |
| 12 | 0.88 | |
| 24 | 0.88 | |
| 60 | ||
| Maybank Classic TD | 1 | |
| 3 | 0.60 | |
| 6 | 0.60 | |
| 12 | 0.75 | |
| 24 | 0.75 | |
| 60 | ||
| UCPB Peso TD | 1 | |
| 3 | ||
| 6 | 0.50 | |
| 12 | 0.50 | |
| 24 | ||
| 60 | ||
| Union Bank Peso TD | 1 | |
| 3 | 0.38 | |
| 6 | 0.48 | |
| 12 | 0.58 | |
| 24 | 0.63 | |
| 60 | ||
| BDO Peso TD | 1 | |
| 3 | 0.38 | |
| 6 | 0.38 | |
| 12 | 0.63 | |
| 24 | 0.63 | |
| 60 | ||
| Landbank Regular Peso TD | 1 | |
| 3 | 0.38 | |
| 6 | 0.50 | |
| 12 | 0.50 | |
| 24 | 0.63 | |
| 60 | ||
| Metrobank Peso Regular TD | 1 | |
| 3 | 0.25 | |
| 6 | 0.25 | |
| 12 | 0.50 | |
| 24 | 0.50 | |
| 60 | ||
| BPI Family Savings Regular TD | 1 | |
| 3 | 0.25 | |
| 6 | 0.58 | |
| 12 | 0.44 | |
| 24 | 0.50 | |
| 60 | ||
| BPI Direct Savings Regular TD | 1 | |
| 3 | 0.25 | |
| 6 | 0.38 | |
| 12 | 0.44 | |
| 24 | 0.50 | |
| 60 | ||
| BPI Regular TD | 1 | |
| 3 | 0.25 | |
| 6 | 0.25 | |
| 12 | 0.44 | |
| 24 | 0.25 | |
| 60 | ||
Investing in time deposit is ideal for anyone who wants to keep the money for a specific period. All you must do is to choose the bank that offers higher interest rate.
Basic requirements for time deposit
- 1 x 1 ID photo
- Valid ID’s (government-issued)
You can also inquire from your chosen bank about other additional requirements especially for non-residents or alien applicants.