Time deposits are safe
If you are looking for an investment but afraid of the risk of losing money, then time deposit is just the right investment for you.
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With a time deposit, you can grow your money while being able to access it easily if needed. To make a time deposit placement, visit your nearest Metrobank branch. Sep 18, 2020 To open an online time deposit, sign up or log in to Metrobank Online and select an enrolled deposit account, then click the Open Time Deposit tile, which appears as an option for enrolled deposits. Metrobank offers a variety of Certificate of Deposit terms including, 1 month, 3 months, 6 months, and 1 year. Inquire within the branch about our Jumbo CD rates. Initial deposit is $1,000.00 to open this account. A minimum balance of $1,000.00 each day is required to obtain the disclosed annual percentage yield. Aug 07, 2020 Metrobank’s rates and fees for its products and services. Time Deposit Rates. Update as of 4 November 2020. Update as of 18 November 2020.
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What is a time deposit?
A time deposit is an interest-bearing form of bank deposit that has a specified time of maturity. It requires the customers to deposit a certain amount of money in a bank and wait for it to mature or earn interest without any withdrawals. Interest earnings are determined quarterly, monthly, or annually. Although the amount you deposited will be inaccessible until the end of your time deposit (withdrawing the amount before a specified period of time will incur certain penalties), you will still have regular cash-flow in the form of interest payments.
In the Philippines, there are a number of banks to consider if you want to make a time deposit. Although, for all banks it is common that your earnings are higher if you invest a higher amount for a longer period time, there are banks with relatively higher time deposit rates than others. Below is a list of the best banks to include in your bowl of choices if you ever think of putting your excess money in time deposit.
1 year (12 months) Time Deposit of Php100,000 (as of March 29, 2018)
Security Bank Peso Time Deposit
How Time Deposit Works In Metrobank
- Interest rate: 2.01%
- Investment returns: Php1,608
- Estimated payout: Php101,608
EastWest Peso Time Deposit
- Interest rate: 1.75%
- Investment returns: Php1,400
- Estimated payout: Php101,400
PBCOM Regular Time Deposit
Metrobank Locations Usa
- Interest rate: 1.50%
- Investment returns: Php1,200
- Estimated payout: Php101,200
RCBC Regular Time Deposit
- Interest rate: 1.38%
- Investment returns: Php1,100
- Estimated payout: Php101,100
Maybank Classic Time Deposit
- Interest rate: 1.25%
- Investment returns: Php1,000
- Estimated payout: Php101,000
6. Security Bank Peso Time Deposit
- Interest rate: 1.20%
- Investment returns: Php960
- Estimated payout: Php100,960
7. Chinabank Diamond Savings
- Interest rate: 1.00%
- Investment returns: Php800
- Estimated payout: Php100,800
8. UnionBank Peso Time Deposit
- Interest rate: 0.88%
- Investment returns: Php700
- Estimated payout: Php100,700
9. Metrobank Peso Regular Time Deposit
- Interest rate: 0.88%
- Investment returns: Php704
- Estimated payout: Php100,704
10.CTBC Peso Time Deposit
- Interest rate: 0.85%
- Investment returns: Php680
- Estimated payout: Php100,680
These are only the best choices depending on the interest rates. If you have other factors to consider, such as the proximity and accessibility of the bank to your home/workplace, then your options may vary. Furthermore, some banks sometimes offer promotions including a surge of their time deposit interest rates. You may also want to watch out for these. Of course if you want growth the stock market is still the best place where you can make your money grow over the long term.
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A time deposit is a good option to “park” your money. The interest is considerably lower than other investment options, but the security it brings is what some people prefer.
This article will address the most common misconception of people about the interest rates of time deposit. Some people think that if your bank says that their interest rate is 2% then you’ll get the whole 2% even if you prematurely withdraw the funds or if you got the shorter term.
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You won’t get the whole 2%. Here is the proper way to compute your time deposit interest.
Let’s say you deposited P100,000 in a time deposit account with 2% interest per annum. You originally opted for the 1-year maturity but an emergency came and you have to withdraw your money after just 60 days.
You will not get P102,000 which is the basic 2% computation. Here are the steps:
Get the principal amount and multiply by the interest per annum.
P100,000 * 2% = P2,000
Get the total number of days and divide by 365 days. In this case, 60 days.
60 / 365 = 0.16
Multiply by your total in step 1.
2,000 * 0.16 = P320
Multiply by .80. This is because the interest that you will get from a time deposit account will be subject to 20% tax. This means you only get 80% of your interest earnings.
320 * 0.80 = P256
Add your step 4 total to the principal amount, then that is what you will get from the bank. Aside from the penalties and charges for premature withdrawal.
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This is the conventional computation, you may also want to ask your bank if they use the 365 count or the 360. When computing your interest for premature withdrawal of time investment funds, you also have to remember that aside from the tax and the low interest, you will also be subject to penalties or charges depending on the bank.