December 29, 2007
5-Year BANK TIME-DEPOSIT Product: CTD Monthly
- “GUARANTEED 20% Interest Rate per annum (TAX-FREE)”
- Interest paid monthly for 60 months (5 years), starting 30 days
- Deposits insured by Philippine Deposit Insurance Corporation
(PDIC) maximum of Php 250,000.00
Mechanics: (sample illustration)
Ø For a Php 1,000,000.00 placement
Ø Earn interest of Php 16,666.66/month for the next 60 months, thus interest earnings amount to a total of Php 1,000,000.00
Ø Principal Sum of Php1,000,000.00 will be released upon maturity date
Minimum placement: Php 100,000.00
Member: Philippine Deposit Insurance Corporation (PDIC)
Email Proponent at:
How safe are my deposits?
· Investment secured by Certificate of Time Deposit (CTD) or bank passbook.
· Bangko Sentral ng Pilipinas (BSP) is the governing body of all banks.
· Deposits insured with Philippine Deposit Insurance Corporation (PDIC) up to Php 250,000.00 (for PDIC, inquiries please visit website www.pdic.gov.ph
Why can rural banks give high interest rates on our time-deposits?
· Bangko Sentral Ng Pilipinas (BSP) is granting higher tax incentives to rural banks over commercial banks since this will help Small and Medium Enterprises (SMEs) in the country.
· Per BSP manual Sec. X242, there is no ceiling in giving interest rates.
Why are interest rates on our time-deposits in commercial banks low?
· Commercial banks borrowing rate is also low ( 12-14% p.a. ) compared to borrowing rate of our rural banks (36%).
What are your outlet of funds?
· Micro financing to SMEs by rural banks is at the rate of 36% per annum or 3% a month. Please refer to Entrepreneur magazine August 2006 issue.
Any other additional safety nets for my deposits?
· Advance monthly interests of 20% per annum ( 1.666% per month ) will be received regularly thereby reducing any risk exposure.
Why should I place in a high-yield 20% p.a. double your money in 5-yr program?
· To protect the purchasing value of your money from deterioration due to “inflation”.
· There is always a need to “diversify” your investments into various financial portfolios to ensure the growth of your savings fund.