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Fixed deposit rates?


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Does anyone have any info to hand on the best available interest rates at present.

 

One to five years would be useful.

 

Are Peso and USD the only available currencies?

 

Thanks,

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billy

the safest and the highest fixed deposit rates are at ps bank which is owned by metro bank. there 5 year use to be 5% i don't know what they are now. as far as other currencies go to hsbc you can get 5% or 6% in new zealand or australian currencies on shorter term

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roadhaze

I just closed a $500. savings account here in US so I can use the money on trip next week. I was getting 3 cents a month interest. It was a keep the change thing from checking. Sorry if nothing to do with banks in PI but interest rates here are a joke.

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Headshot

I just closed a $500. savings account here in US so I can use the money on trip next week. I was getting 3 cents a month interest. It was a keep the change thing from checking. Sorry if nothing to do with banks in PI but interest rates here are a joke.

 

The interest rates in the Philippines are next to nothing. If you want to earn money on your money, leave it in your home country and invest it there.

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David_LivinginTalisay

Check out the Pinoy Money Talk Forum

 

logo.jpg

 

Banking / Insurance / Credit Cards

Sorry, can't vouch that these Threads produce the answer you are looking for, but they probably do give some useful information that Members of this forum might not be aware of.

 

Last time I looked in on this PMT Forum was probably 6 months ago

 

Here are some snippit, of some more recent Message Posts (Last few pages of the threads):-

 

BPI Family Bank offers Special Deposit Account (SDA) with a net annual interest rate of 3.2568%. That is already net of 20% withholding tax

 

I think Maybank offers 5% per annum for 1 Year Time Deposit.

 

 

Malayan bank 8% annually,

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Re: High-Interest DOLLAR Savings and Time Deposit Accounts

« Reply #135 on: Aug 30, 2011, 08:15 PM »

 

Just found out that PhilTrust Universal bank has a 5 Year TD at 5% per annum with quarterly payouts, the highest rate so far on a dollar account ...

 

 

 

 

You need to Check, verify and ascertain, if the information posted is Accurate and up to Date!

 

Check with BSP and PDIC that such Rate is accurate and valid and no Warnings issued to said Bank in respect ot that Product offering.

 

I am just steering you to a possible source on Financial Information for the Philippines.

 

I have NOT checked the accuracy/validity of any of the Message Posts - the Forum Members do that, hopefully, by updating the Post.

 

Example:-

 

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Re: Peso Time Deposit Rates

« Reply #997 on: Feb 01, 2012, 10:24 PM »

Quote from: finance123 on Jan 07, 2012, 03:39 AM

I think Maybank offers 5% per annum for 1 Year Time Deposit.

4% lang po less 20%FT..interest is credited either at the end of 1yr, or at the time of placement..puede rin yata monthly.

Edited by David_LivinginTalisay
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David_LivinginTalisay

http://www.bankofmak...me-deposit.html

 

logo.jpg

 

 

As personal as they can get! Bank of Makati’s deposit products,

packaged with personalized service,will help you save for a secure future.

Special Savings and Time Deposit

 

Optimize your idle funds through special savings and time deposit placements with Bank of Makati. Increase your yield with higher interest rates as amount of placement increases.

 

Features:

  • Only P5,000.00 initial deposit to open an account
  • 30 days minimum term
  • From 4% - 8.5% interest rate
  • Insured with the Philippine Deposit Insurance Corporation (PDIC) up to P500,000.00 per depositor

Maintaining Requirements and Deposit Rates (Business)

 

PRODUCT........................ INITIAL DEPOSIT.......REQUIRED MAINTAINING BAL......REQUIRED ADB.....INTEREST RATE ....SERVICE FEE ON ............................................................................................................................................................................................ACCOUNTS TO EARN ...............................................................................................................................................................................................INTERESTFALLING .........................................................................................................................................................................................BELOW THE REQUIRED ..........................................................................................................................................................................................MAINTAINING BALANCE

Regular SavingsDeposit................3,000.00 .................... 3,000.00......................... 3,000.00................... 2% .....................50.00

Checking Account..........................10,000.00 ..................10,000.00.........................10,000.00...................2% ..................... 50.00

Special Savings & Time Deposit....5,000.00...........................- ................................... - ..........................See below.................. -

Amount.............................................. 30 days to < 1 year .................1 year up to < 5 years......................... 5 years & up

5,000 to 49,999 .........................................4.00% ...........................................4.50% ............................................6.00%

50,000 to 499,999......................................4.00%.............................................4.75%............................................6.50%

500,000 & up..............................................4.50%..............................................5.00%...........................................7.00%

Note: Same interest applies for 5 years options on monthly interest out and end-of-term placements.

 

20% Withholding Tax........................

All interests are subject to 20% withholding tax. Placements in the name of corporations and with term of five (5) years or more are not exempted from the 20% withholding tax.

Documentary Stamps

Documentary stamps of Php1.00 for every Php200.00 shall be shouldered by the Bank; in case of pre-termination, the cost of documentary stamps shall be collected from the depositor.

Note: Rates are subject to change without prior notice.

Rates as of 01/16/12

Insurance coverage with the Philippine Deposit Insurance Corporation (PDIC) up to P500,000.00 per depositor.

 

Edited by David_LivinginTalisay
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smokey

not bad david except for the rural part which means if your not lucky your 5 year deposit can become a 10 year one and your lucky IF you get your funds back.... i think tier 2 in the major banks is safer then rural

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I second that - not bad at all. So do I take it that rural banks have a history of collapse in the PI?

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smokey

I second that - not bad at all. So do I take it that rural banks have a history of collapse in the PI?

 

 

 

bingo

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David_LivinginTalisay

not bad david except for the rural part which means if your not lucky your 5 year deposit can become a 10 year one and your lucky IF you get your funds back.... i think tier 2 in the major banks is safer then rural

 

Ignore smokey/Robert51 who never deposited even 1 peso in a Rural Bank so has Zero experience and seeming ignorant of PDIC claims also.

 

Read this to learn something from someone with some experience of such Deposits and PDIC Clains and who got 96-98% of Nett Deposts back and still managed to average over 12%pa, even with PDIC taking 6 - 24 months to pay out our Claims. I give some Tips also from this experience

 

http://www.livingincebuforums.com/topic/48425-how-safe-is-your-money-in-a-rp-bank/page__view__findpost__p__490092

  1. Choose the right bank and it should not get closed.
  2. Whilst it is now Php500,000 per Bank as Maximum Insured Deposit (and separate Cover for Joint Accounts, don't Deposit all in one Bank.
    Place Deposits in several Banks and make sure they not all part of some Group. If spread over say 5 Banks and 1 gets Closed, you have only lost 20% of your income from such Deposits.
  3. Don't go after any Bank offering Interest Rate >50% than any Peer Bank
  4. Conduct Business @ Banks Premises and comply with Anti Money Laundering Rules
  5. Take copies of all Documents supplied (ID, ID Photo, Marriage Contract, Community Tax Certificate / Cedula confirming your Address, Birth Certificate of Children) and have Banks Staff give name and signatures toi cerify such Ducenments were supplied to the Bank and copies of such should be in thr Banks Records
  6. Have Auidit Trail to source of funds (ie use Banks .Cashiers Check. to fund the Deposits)
  7. Insist on Official Receipts
  8. Check the wording of the Account Name, and spelling is same as on ID supplied. (If ID shows Middle Name in Full - have the Account Name shown in Full)
  9. Take Digital copies of all Documents and store them on a Server(s) so they can be accessed, and printed/e-mailed if required.

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David_LivinginTalisay

I second that - not bad at all. So do I take it that rural banks have a history of collapse in the PI?

 

The Philippines has a comprehensive banking system encompassing various types of banks, from large universal banks to small rural banks and even non-banks.

 

As at 31 March 2011, there are 19 universal banks, 19 commercial banks, 73 thrift banks, 595 rural banks, 40 credit unions and 15 non-banks with quasi-banking functions, all licensed with the Bangko Sentral ng Pilipinas (Central Bank of the Philippines) under Republic Act No. 8791, also known as the General Banking Act of 2000, share roughly the same powers.

 

How many Rural Banks got closed in 2011?

 

1, 2 , 5, 10, 20 or more?

 

Did you just see some headlines of some Rural Bank closing, then perhaps another, and seem to think it happens every week or something?

 

Home > Business > Featured Gallery >

CA rules closure of Banco Filipino ‘illegal’

 

By: Tetch Torres

INQUIRER.net

11:29 am | Wednesday, February 1st, 2012

 

 

 

300x225xBanco-Filipino-AFP-FILE-PHO-300x225.jpg.pagespeed.ic.mgf2QIrTX9.jpg

Banco Filipino. AFP FILE PHOTO

 

MANILA, Philippines—The Court of Appeals ordered the Bangko Sentral ng Pilipinas (BSP) to reopen Banco Filipino and provide a P25-billion financial aid contained in the business plan previously approved by the BSP and the Monetary Board.

 

The appeals court in a 50-page decision gave the BSP 30 days to extend financial support to Banco Filipino based on the indicated business plan approved by the BSP and MB as it described the closure as “illegal.”

 

“The BSP and the Monetary Board are hereby ordered to reopen Banco Filipino Savings and Mortgage Bank and allow it to resume business in the Philippines under the comptrollership of the BSP and the MB, complete with a viable rehabilitation plan, in order to ensure fast and immediate recovery of the bank from the ill-defects of the illegal closure,” the appellate court said in ruling penned by Associate Justice Agnes Reyes-Carpio.

 

The BSP placed Banco Filipino under receivership on March 17 last year, three days after the thrift bank declared a bank holiday.

The BSP said the bank had to be closed because it was insolvent. The liabilities of Banco Filipino had exceeded its assets by P8.4 billion, the central bank said.

 

Banco Filipino in a petition before the Makati Regional Trial Court asked for a P25 billion worth of financial aid, saying it was entitled to the monetary assistance based on the 1991 Supreme Court decision which ordered the reopening and reorganization of Banco Filipino after its closure in 1985.

 

The Makati court, in its November 18, 2010 order, granted Banco Filipino’s application for a writ of preliminary mandatory and preventive injunction and directed BSP and MB to immediately implement the bank’s business plan.

 

But the Court of Appeals last year ruled that the injunction was issued with grave abuse of discretion and overturned the decision of the lower court.

 

This was reversed however with the appellate court telling the BSP to consider the current landscape since the business plan was drafted in 2009 for necessary “augmentations and adjustments.”

 

The appeals court also ordered that a special liquidity facility fund be put in place.

 

It said that while a P25-billion aid was approved by the BSP and MB, supervening events must be taken into consideration.

It cited as an example that when the Banco Filipino was about to close, it had around P16-billion deposit accounts which were reduced as the Philippine Deposit Insurance Corporation started paying depositors and creditors.

 

“As soon as the reopening is published and announced, the depositors would flock and congregate in order to make the withdrawals. Thus, there is a need to address this matter before the reopening,” the appeals court said.

 

Aside from Carpio, the decision is concurred in by Associate Justice Vicente Veloso and Normandie Pizarro.

 

 

Rural Bank Closures wused to be about 10 per year, or less than 2% othe Total, before 12 x Rural Banks of the Legacy Group got closed in 2008.

 

Some Banks were thought to be part of the Legacy Group (becuse they al;so offered 20%pa on 5 Year Peso Time Deposts) and got into financial trouble because of a run on withdrawing Deposits, and they eventually got closed also.

 

http://www.abs-cbnne...nks-closed-2008

 

M&As seen improving rural banking sector’s growth prospects

 

By: Michelle V. Remo

Philippine Daily Inquirer 1:36 am | Wednesday, December 28th, 2011

 

Rural banks are upbeat about their growth prospects for 2012, expecting that consolidation in the industry will enhance their competitiveness against commercial banks that have been putting up branches in the countryside.

read more->

 

Industry players said the entry of various commercial banks in rural areas had made competition for rural banks tougher.

Tight competition, limited capitalization and management problems have led to the closure of a number of rural banks over the past three years.

 

The industry, however, believes that the sector’s consolidation through mergers will make rural banks more financially stable and will enable them to invest in more products and services for people in the countryside.

 

The Rural Bankers Association of the Philippines (RBAP) said it was supporting calls for industry consolidation, agreeing that it was a wise move to make members stable and able to deliver more products and services to the countryside.

 

“(Consolidation) will result in member-banks being more equipped in providing microfinance services to farmers, fisherfolk and small enterprises, especially with the banks’ continuing focus on the agri-agra sectors,” RBAP president Eric Pama said in a statement.

 

Regulators have been pushing for the consolidation of the rural banking sector to avoid closures to be brought about by weak capitalization and mismanagement.

 

The Bangko Sentral ng Pilipinas is urging stable and well-managed rural banks to acquire smaller industry players.

Bank closures are costly as these force government-owned Philippine Deposit Insurance Corp. to shoulder expenses related to shutdowns, such as deposit insurance.

 

To avoid more closures in the future, the government is encouraging mergers and consolidation.

 

The government is implementing a program called Strengthening Program for Rural Banks (SPRB) to encourage mergers and consolidation. Under this, banks that will serve as white knights to their troubled peers will be given incentives, such as regulatory relief and loans that can be used in the acquisition.

The rural banking sector, composed of more than 600 banks, has an average capital adequacy ratio (CAR) of 19 percent, exceeding the minimum requirement of 10 percent.

 

Regulators said the satisfactory average was due to the good performance of many rural banks. They noted, however, that many members were suffering from insufficient capital.

 

BSP Officials expect that the incentives offered will encourage more rural banks to pursue consolidation.

 

In response, the RBAP said the industry would continue supporting consolidation moves.

 

In the meantime, the rural banking sector is pushing for a law that will allow industry members to accept investments from foreigners. Rural bankers said foreign investments will help rural banks boost their capital and enable them to invest in more products, services and technology.

 

 

Bad rumours and people panicking, and making withdrawals can cause a Bank to have seriouis cash flow shortages, and this can lead to it's collapse.

 

Just like those members saying that ALL Rural Banks are bad and you should stay away from them!

 

How funny it is those with ZERO experience of such Rural Bank Time Deposits, usually the ones being the Soothsayers!

Edited by David_LivinginTalisay
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  • 3 weeks later...

Thanks for the post. Fixed deposit rates are applicable in opening an account. I didn't know there's more about it.

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  • 1 month later...

I purchased a 5 year Time Share from PNB last year with an interest rate of 3.8% which is much better than what CD's in the USA are offering. I am seriously considering moving some of my investments here in the PI.

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KennyF

I purchased a 5 year Time Share from PNB last year with an interest rate of 3.8% which is much better than what CD's in the USA are offering. I am seriously considering moving some of my investments here in the PI.

 

National Australia Bank (NAB) offer 5.30% pa.

No entry or ongoing fees

Interest paid yearly.

Starts at $AU5,000

 

A bit more secure than RP banks I would imagine.

KonGC

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Ignore smokey/Robert51 who never deposited even 1 peso in a Rural Bank so has Zero experience and seeming ignorant of PDIC claims also.

 

 

 

With the utmost respect sir, I find your expression of love toward smokey/Robert51 a bit odd.... but brilliant!

Edited by Frosty
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