Jump to content

Rural Banks offering 20%p.a.?


Recommended Posts

Robert51, it is a five year time deposit (or six in some cases) so no one is likely to take their money out since they become liable for stiff penalties for early withdrawal. Given the state of flux with banks currently I can understand the concern, but the PDIC insurance on the rural bank deposits offers some sense of security though perhaps not to you.

Link to post
Share on other sites
  • Replies 46
  • Created
  • Last Reply

Top Posters In This Topic

  • Balay

    9

  • smokey

    8

  • Tatoosh

    8

  • Alan S

    6

Top Posters In This Topic

A pal of mine did have money in a rural bank (although not Legacy or its affiliates) for the required period, then withdrew it when he moved back to the UK.

 

Later, he put some more in, in his (Filipino) brother-in-laws name, and as far as I know, that one is still running.

Link to post
Share on other sites
mattwilkie
A pal of mine did have money in a rural bank (although not Legacy or its affiliates) for the required period, then withdrew it when he moved back to the UK.

 

Later, he put some more in, in his (Filipino) brother-in-laws name, and as far as I know, that one is still running.

 

The only thing i can see wrong with these high interest accounts is on ethical grounds. But as many people are aware the interest rates on thrift shops etc. are very high. International banking trading is very low so where do you get extra funds when a country is heading for boom times?

 

Governments interest in upping the stakes is on two levels to increase money available in the country and also personally it guarantees theyre money. You have to look at it if you are a corrupt official with investments wouldnt you want to guarantee your own cash?

 

The demise of the Legacy group itself may happen but its already been around for approx 12 years i dont think it plans to disappear anytime soon. People will take loans at crazy rates because they pass it on to the man on the street. Prime example go and look at a second hand motorcycle and its "weekly/monthly" payments you can see why businesses can afford to make the monthly payments on high interest loans because simply the guy riding around on the bike is paying high interest. 20% per annum is a very small slice of that pie. But the other way to look at it do you think the economy could survive without investments? no.. it needs more its a growing economy in a country with a growing population. Even if no new businesses appear due to population growth it would naturally need more money. Yes there is bad debt out there but the point is thats where all these pawn brokers are making a killing.. with very high interest and keeping goods if not paid.

 

I invest but i would also say to anyone never risk what you cant afford to lose and never complain when other people take the risk and come out ahead.

Link to post
Share on other sites

Matt, you may have missed the critical comments recently about the Argos credit card in the UK, where the interest rate is around 200%.

Yes, that is two hundred percent!

Link to post
Share on other sites
mattwilkie
Matt, you may have missed the critical comments recently about the Argos credit card in the UK, where the interest rate is around 200%.

Yes, that is two hundred percent!

 

 

Hi Alan,

I hadnt seen the Argos CC but last year started receiving a lot of emails offering 40% interest + on Credit cards when you start getting things like that you know there is a lot of people out there with bad debt. Thing is in the UK most people could easily clip theyre wings.. my sister is a prime example great job plenty of cash but still manages to struggle through the month due to being out nearly every night. The UK is in for a heavy shock I think its a bit different in the Philippines though as its pretty much been plodding along since the fall of Marcos. I dont think it could get much worse in the Philippines banking wise as the interest rates are already high.

 

Argos article :-

 

http://www.guardian.co.uk/money/2008/oct/2...bt-credit-cards

Edited by mattwilkie
Link to post
Share on other sites
smokey
It sounds like you are desperately seeking negatives . . if you are getting 20% interest, why would you want to take out the principal? Where are you going to put it to do better?

 

 

 

 

 

 

Because i have seen with my own eyes that when you put money in to something everyone loves you and when you want it back that is a different story.... What if you move to the US ?? Are you going to get stalled or hassled that is all i want to know...

Link to post
Share on other sites
smokey
Robert51, it is a five year time deposit (or six in some cases) so no one is likely to take their money out since they become liable for stiff penalties for early withdrawal. Given the state of flux with banks currently I can understand the concern, but the PDIC insurance on the rural bank deposits offers some sense of security though perhaps not to you.

 

 

 

 

Tatoosh I understand I read that the PDIC does not cover in the case of fraud and a few others ...but I was really thinking if you opened many accts and the 5 years were up is there any problem getting your principal back..

Link to post
Share on other sites
Because i have seen with my own eyes that when you put money in to something everyone loves you and when you want it back that is a different story.... What if you move to the US ?? Are you going to get stalled or hassled that is all i want to know...

 

There is a member of this forum who had multiple accounts with the rural banks. he had some things come up and had to liquidate some of them. There were no problems at all from what he told me. He did not go through Legacy or a broker, he went directly to the banks!

Link to post
Share on other sites
smokey
It sounds like you are desperately seeking negatives . . if you are getting 20% interest, why would you want to take out the principal? Where are you going to put it to do better?

 

 

 

 

i am old school i have at least one years salary in the bank at all times so as i worked so hard for the money i want to make sure after the 5 years is up i can say.. no thank you i just close my accts... and there will be no ... well sir you will have to come back when the in charge is here...or sir you need to have a nbi clearance .. i would like to hear someone say... hey no problem they closed my acct and either gave me cash or a managers check... and thank you alan for tell me about your friend ...

Link to post
Share on other sites

I invested a small amount ( just a couple thousand) with Legacy at Oriental bank to see if it's legit. So far so good, I am making 20% since March of this year. Everymonth they deposit the interest (20%) into my account with a bank of my choice. Time will tell if this is a Ponzi schemes.

 

Remember invest only what you can afford to lose. Diversify, diversify.............I think now is a good time to buy some US stocks, some are at 50% or even at 75 % discount.

Link to post
Share on other sites

If you understand how the "Pautang" or "Five-Six (5-6)" Business works. You will understand how it is possible to pay out 20 percent ( or even more per year )

 

In the most simplest form if someone borrows 5 pesos in the morning and has to pay 6 pesos back at night.... how much interest is that ?

 

If let the interest compound for a month.... how much interest is that now ?

 

Go down to the local markets and see how popular Five-Six (5-6) is.

Link to post
Share on other sites
smokey
If you understand how the "Pautang" or "Five-Six (5-6)" Business works. You will understand how it is possible to pay out 20 percent ( or even more per year )

 

In the most simplest form if someone borrows 5 pesos in the morning and has to pay 6 pesos back at night.... how much interest is that ?

 

If let the interest compound for a month.... how much interest is that now ?

 

Go down to the local markets and see how popular Five-Six (5-6) is.

 

 

 

 

 

has anyone heard of any promo going on ... many of the banks not only offer the 20% but also have a promo .. one bank said they would give a 15,000p lap top if you opened an acct for 250,000p and for 500,000p a cell phone worth 25,000p... so far all i can find is for each acct.. 250,000p you can get a gift cert. for 2500p at sm .. anyone hear of a better??/

Edited by robert51
Link to post
Share on other sites
has anyone heard of any promo going on ... many of the banks not only offer the 20% but also have a promo .. one bank said they would give a 15,000p lap top if you opened an acct for 250,000p and for 500,000p a cell phone worth 25,000p... so far all i can find is for each acct.. 250,000p you can get a gift cert. for 2500p at sm .. anyone here better??/

 

I did'nt hear anything.. but I can ask around.

 

What is the time deposit for the 20 percent + gifts ? 5 year ?

 

Which banks are offering those gift promos ?

 

 

I have heard of 6 year Hybrid Time deposits for buying a car . You get the 20 percent interest for months 61-72, up front, so you can put it down as the down payment on the car you want to buy. You still get the monthly paid interest month 1-60.

Link to post
Share on other sites
has anyone heard of any promo going on ... many of the banks not only offer the 20% but also have a promo .. one bank said they would give a 15,000p lap top if you opened an acct for 250,000p and for 500,000p a cell phone worth 25,000p... so far all i can find is for each acct.. 250,000p you can get a gift cert. for 2500p at sm .. anyone here better??/

 

I certainly know of a promo tie up with Banco De Oro and SM owned businesses (i.e. SM Department Store, Home Store, Ace Hardware, Toy Kingdom, Surplus Shop, Watson, etc). During Wednesday, if you use BDO's ATM card for you payment, you get 5% rebate.

 

http://www.bdo.com.ph/Promos/rebate.asp

Link to post
Share on other sites

Robert, quit it! You know it is from banks that you don't want to do business with. It is the Legacy Group for one of the offers and it a different bank (offer is closed I think, but not sure) for a second offer. They were all based on the 250k sort of deposit, but since all the Legacy Checks are no longer good, supposedly waiting to be exchanged, I am waiting until I see the new ones and have a few of them actually clear the bank.

 

Nestor A or David W can probably give you more details. If you want contacts for those guys let me know by PM or email and I will send their emails to you.

Link to post
Share on other sites
Guest
This topic is now closed to further replies.

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use, Privacy Policy and Guidelines. We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue..

Capture.JPG

I Understand...