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billy

does anyone have any ideas on interest rates for time deposits now? does anyone have any ideas on higher interest rates?

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Thelandofku-an

does anyone have any ideas on interest rates for time deposits now? does anyone have any ideas on higher interest rates?

Please research  Rural Bank threads and Ponzi Scheme threads so you can avoid the wrong kind of

investments, major banks pay peanuts nowadays!

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billy

Inneresting,  Aussie dollars King, or typo?

I would give 5%+pa for a secured 10 yr Peso loan!

what kind of security?

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Thelandofku-an

what kind of security?

:-) I sent a PM.

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Lauie

If you have a family in the Philippines who works for PNP or the armed forces, I recommend checking into AFPSLAI and/or AMWSLAI. Last I checked, AFPSLAI's annual interest rate is 18% or 4.5%/quarter because they give the dividend quarterly... the highest rate you can possibly find anywhere. You can either withdraw the dividend or leave it for the interest to compound. When I started working in the Philippines, my dad who's a soon-to-be retired police had been talking me into this (saying "Don't make the same mistake I've made"... being broke, that is. LOL). But being only 20, I really didn't understand anything about investing back then. When I go back this year, I'll look into it for sure and inquire for information. 

Edited by Lauie
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A_Simple_Man

I could be interested in a private mortgage.  If anyone would be interested in earning about 5% for about 7 years, paid out in quarterly installments  secured by an actual title to a house and lot in the Philippines then here is what I have in mind:

 

Investor puts up 2.5 million pesos, holds title to property and/or mortgage on property until paid (bank appraisal at 3.5 million pesos)

30 Quarterly payments of 100,000 Pesos which equates to about 5% ROI, not reported anywhere, totaling 3 million Pesos returned .. . (half a mill profit)

 

If this intrigues anyone then send me a PM. .

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David_LivinginTalisay

Please research  Rural Bank threads and Ponzi Scheme threads so you can avoid the wrong kind of

investments, major banks pay peanuts nowadays!

 

Rural Banks have less overheads than Commercial Banks.  They have smaller premises, in the provinces, rather than City Centeres so building cost less or lower rent.  They employ less staff, than commericl banks also.

 

Commercial Bankls seem to work efficiently on typicallly 7% differential margin between Rates charged to Borrowers and the Rates offered to Depositors.

 

So why should Rural Banks not also work efficiently on 7% differential, or less (as their overheads are lower)?

 

I have an Asset Link Loan of Php180,000 with HSBC, at an Annual Rate of 8.3%pa.   My Php200,000 Time Deposit - monthly roll over (that is the Asset providing the collaterol for that 90% Loan) is only 0.11%pm (1.34%pa)  ie 7% difference.

 

How much do Rural Banks charge Borrowers?

 

When I took out a secured loan with Oriental Rural Bank, it was 3% pm (or 36%pa) and I was receiving 20%pa on a 5 Year Peso Time Deposit ie 16% differential.

 

Yet some think they can't possibly be legally making enough money to afford to offer 20%pa - and think it must be a SCAM.

 

As far as I know, there are no Rural Banks still offering 20%pa.

 

I was getting 8%pa with Green Bank (but that was several years ago, and they have merged and become a subsidiary of EastWest Bank).  See EastWest Bank buys Green Bank of Caraga | Inquirer Business

 

There are some Thrift Banks however offering 7%pa

 

Considering those who shout Rural Bank SCAM seem to NOT have placed any funds in such Banks, I wonder on what basis they come to such conclusion?  

 

Believing what they read in the Philippine PRESS?  

 

Wow, what an authority of Truth, Facts and all relevant information, you are gleaning that conclusion from!

 

If they are referring to the closure of the 12 x Banks of the Legacy Group in December 2008, that is fact.  But the PDIC did pay me 98% of all Net Deposits in the 5 x Legacy Group Banks that my family had deposits with (but did take 6 - 21 months from closure to receive all the Claims).

 

But do these people know the truth behind why these Rural Banks of the Legacy Group had successfully offered such 5 and 6 Year Peso Depoits  to get ot of say 20%pa for over 11 years before the collapse.   Only 1 x Legacy Group Bank had ever closed in all that time, then suddenly all 12 got closed.

 

I think the truth is what I have posted before - a certain 3rd Party from USA, persuaded Celso G De Los Angeles Jr. to get out of Banking and move into Real Estate.  Only after that did desperate Promo Offers start coming out.  A syphoning off, of Bank funds,  The removal of funds from Trustee Bank accounts of Legacy Consolidated Plans Inc, and moving cash around the Banks before Audits took place.

 

This only started when Central Bank turned down an offer for Foreigner Buy In.  And guess what - Foreign Investment can now own more than 50% of Rural Banks.  Had that happen in 2008, those 12 Banks of the Legacy Group, might not have needed to get closed down!  

 

But if you dont like Rural Banks, and wont consider Thrift Basnk offering 7%pa, that is up to you!

 

If and when I get a buyer for Ramos Tower, I will put some funds into such Thrift Bank, to earn 7%pa

 

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Thelandofku-an

I was not offering an opinion, just letting Billy know where to find the links about what  to consider!

I assume he's overseas which is why he's asking?

 

Fyi, my school had the decency to refund all the parents we advocated to invest in a pre-need

education plan with said group!

Edited by Thelandofku-an!
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billy

I could be interested in a private mortgage.  If anyone would be interested in earning about 5% for about 7 years, paid out in quarterly installments  secured by an actual title to a house and lot in the Philippines then here is what I have in mind:

 

Investor puts up 2.5 million pesos, holds title to property and/or mortgage on property until paid (bank appraisal at 3.5 million pesos)

30 Quarterly payments of 100,000 Pesos which equates to about 5% ROI, not reported anywhere, totaling 3 million Pesos returned .. . (half a mill profit)

 

If this intrigues anyone then send me a PM. .

if you can get 7-8% insured for 5 yr. TD why would i want to lend at 5% with risk?

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billy

if you can get 7-8% insured for 5 yr. TD why would i want to lend at 5% with risk?

by the way the going rate for a loan like that is no less then 11% with costs maybe even 13% OR HIGHER

Edited by billy
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A_Simple_Man

 

if you can get 7-8% insured for 5 yr. TD why would i want to lend at 5% with risk?

 

If you can get that then go for it.  I still have the 1 million peso cheque from the last 'guaranteed bank investment' I made.  I should frame it as it will never be cashable.

 

But to seriously answer your question, tax is one reason you may want to invest privately and the other reason is security.  There are many who lend money on property in this country with the hope that the money will never be paid back so you can foreclose on the property.  I suggest that holding the title to real property is less risk than putting cash into some Philippine banks or investment securities.  But it is just a personal opinion based on personal experience here.

 

PS:  When I say there are many who lend money on property here I mean people who lend it at anywhere from 10% to 20% per annum.  I am looking for something more realistic.

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Thelandofku-an

If you can get that then go for it.  I still have the 1 million peso cheque from the last 'guaranteed bank investment' I made.  I should frame it as it will never be cashable.

 

But to seriously answer your question, tax is one reason you may want to invest privately and the other reason is security.  There are many who lend money on property in this country with the hope that the money will never be paid back so you can foreclose on the property.  I suggest that holding the title to real property is less risk than putting cash into some Philippine banks or investment securities.  But it is just a personal opinion based on personal experience here.

 

PS:  When I say there are many who lend money on property here I mean people who lend it at anywhere from 10% to 20% per annum.  I am looking for something more realistic.

Just arrived home from BPI variable rates eg. under 10% for 10 years, around 9.7% ROI  for the bank.

I clicked their banner at the top of this page yesterday!

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A_Simple_Man

 

Just arrived home from BPI variable rates eg. under 10% for 10 years, around 9.7% ROI  for the bank.

 

That is very good.  Do they still deduct 1/3 off the top for taxes?  Even so you would net over 6% which is a decent return if secure.

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