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Rural Banks offering 20%p.a.?


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smokey

Found this while researching rural banks.... i heard about this spliting...

 

 

 

 

 

OFW says:

 

Hi Guys i had a share of investment to this Legacy back in davao and yes PDIC coverage was mentioned when i made my 6-digit investment double-in-3-years.

 

They did split the amount by 250k each to 4 accounts but reading the explanation by PDIC that all accounts in single name will be consolidated and only be covered max 250K means my 750K is not insured! This sucks! as it was not explained to me in that way.

 

I hope RBGenSan will not close till i come home mid this year so i can terminate it or have the 3 accounts change to other names in my family. Agents must! and i say MUST disclose all important issues to thier investors coz if not, its the same as they are misleading thier clients with respect to the risks.

 

richpulubi says:

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Found this while researching rural banks.... i heard about this spliting...

OFW says:

 

 

They did split the amount by 250k each to 4 accounts but reading the explanation by PDIC that all accounts in single name will be consolidated and only be covered max 250K means my 750K is not insured! This sucks! as it was not explained to me in that way.

 

 

He should of read and done his research that the PDIC only issues up to P250,000 pesos for EACH account.

( You can open up account in -18 year olds names as ITF ( In Trust For ) ... but make sure they are even younger than 18 years old so the Time Deposit does'nt mature before they are 18 years old )

 

If you are going to invest into Rural Banks... do your research.

 

Higher interest comes higher risk that Rural banks can offer.

Low interest but better stability go with Big Commercial banks.

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There are many investments that offer, and provide, returns far greater than one is used to seeing.

The sceptics always decry them and assume they are fraudulent, whilst those who are in them, just count their money and smile!

 

Yes, there are frauds, and yes, one can get caught out. But, as we have seen, the same can be said of investments in major banks or similar organisations.

 

There is little point in either group attempting to change the opinions of the other, as both are convinced they are right.

 

As for the Rural Banks, my own knowledge tells me that they are genuine, but I would still consider them a risk, so, as I have said before, only put in what is covered by Govt insurance, and, preferably, what you could lose without it being a personal disaster.

That applies to ANY investment anywhere.

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smokey

 

 

 

 

 

 

now this would sure help ... as it stands now i would not open more then 2 accts per bank and to start i will try to use banks in different areas so my chances of both banks falling same time is slim...

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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.

 

Actually most legacy cheques are just fine! I'm in 5 legacy banks and none of my PDCs are affected. Those who are unlucky enough to have the affected cheques apparently will be compensated by an extra 3% a month on the outstanding cheque amounts until they are replaced or so I've heard.

 

As for risk, as long as you keep the amounts invested to no more than 250k per bank, the risk of losing it is roughly the same as the risk of the ph government falling which I don't think is terribly likely. If all my banks go belly up tomorrow, I will still have profited handsomely from the interest I've earned with the principle returned usually within days or weeks.

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Poby, sorry, I mixed up the programs a bit. The Legacy program you are talking about is the rural banks (which were under some sort of closure process but resisting it). My poorly worded aside was about the PNBB2 program (Pre-Needs Buy Back 2nd Version) which has your investment returned via Post Dated Checks (PDC) that were issued through EastWest Bank (and another one who's name escapes me). Those checks are no longer good and will purportedly be replaced. Those of us who hold them are eagerly waiting for info on just how and when that will be done. The extra 3 percent being offered is nice, but negotiable checks would be nicer. Oh, and the PNBB2 program does not enjoy the benefit of PDIC insurance, whether the amount is under or over the 250K figure. (Did PDIC just raise that to 500K recently?)

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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.

Chimellie, you said that you invested a small amount, even though i dont know what is a small amount for you, but i think there is a minimum, 200-250,000 pesos? not sure exactlly, in order to get into the 20% interest program..can you clarify for me? thanks..

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smokey
Actually most legacy cheques are just fine! I'm in 5 legacy banks and none of my PDCs are affected. Those who are unlucky enough to have the affected cheques apparently will be compensated by an extra 3% a month on the outstanding cheque amounts until they are replaced or so I've heard.

 

As for risk, as long as you keep the amounts invested to no more than 250k per bank, the risk of losing it is roughly the same as the risk of the ph government falling which I don't think is terribly likely. If all my banks go belly up tomorrow, I will still have profited handsomely from the interest I've earned with the principle returned usually within days or weeks.

 

 

 

 

 

 

does the legacy bank all act as single banks...? or are they one main with branches? i have read the PDIC has cracked down on acct splitting... and will cover only one name per back... so my plan is to open only 2 accts per bank reguardless of what the bank (sales team tell me... ) i did not see how joint accts were covered in the PDIC web site..

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They are different (separate) rural banks. You do have to watch out for the individual account thing. I was told that if you have account in your name and a second joint account, say in you and your wifes name, that is okay. But I am not the PDIC so it would be worthwhile to check that out. I also heard that PDIC wanted to (and maybe did) up the amount of coverage to 500k per account, but I don't know that is true either. I haven't seen it else where, so I am starting to doubt the original source.

 

Again, just for the record, I think that PDIC insured accounts (within their limits) is a relatively safe investment. Yes, they can close, but you would get your original investment back after awhile. To me, that is pretty risk free for the amounts involved. As for taking the funds out of the Philippines, I don't know. But since I live here and plan to continue to do so for the foreseeable future, I will need pesos to spend on shelter, food and the other essentials (aka wine women and song). Eighteen to twenty percent interest is pretty darn good compared to what is happening elsewhere.

 

P.S. Got your message and will do as you request Robert51.

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  • 3 weeks later...

Just curious, is this rural bank business for long term deposit only? What about a short-term PDIC insured high interest deposit (no more than 180 days)? Looking for a 10pa or better, and accessible within Cebu area.

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Just curious, is this rural bank business for long term deposit only? What about a short-term PDIC insured high interest deposit (no more than 180 days)? Looking for a 10pa or better, and accessible within Cebu area.

 

Yes.

 

There was recently a 90 Day Time Deposit 10%pa Interest as wel as a iPhone 3G or P25,000 pesos.

 

Php250K min. Deposit ( PDIC insured )

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There has been some talk of the 3 year Legacy Group PNBB and PNBB2 Program Checks are Bouncing but they are reissuing them with interest.

( UnionBank at EastWestBank checks to be exact )

 

 

In my opinion I would hold up on the 3 year Legacy Time Deposits for now. ( The are NOT PDIC Insured )

 

There are 5 year Time Deposits paying 20 percent a year with other Rural Banks ( PDIC Insured ) that I feel are still ok.

Edited by Balay
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