Time Deposit

Opening a time deposit account entails “locking in” a certain amount of money there and not withdrawing from it for a set period of time. Since the bank can hold your money for a fixed period, it allows them to be more liquid and to manage their other financial products. In return for this added liquidity and flexibility, the bank offers higher returns on time deposits than savings accounts.

There are three things involved in the process of opening your own time deposit account:

• The initial deposit. This is the amount of money you agree to keep in the account for the duration of the term. Robinsons Bank accepts denominations in Philippine pesos (PHP) or US dollars (USD) for its time deposit products.
• The term. This is the length of time that your money will be locked into the account. You can choose to keep your time deposit untouched only for a month or two, or you can choose a term that spans years.
• The interest rate. This is the amount of interest you stand to gain from your initial deposit after the term has reached maturity. The exact amount you can earn depends on factors like your deposit amount, the length of your term, and prevailing market rates.

The basic principle of a time deposit account is: the higher the minimum deposit and the longer the term, the more interest you can collect. If you’re new to investing, it’s fine to start with a lower minimum placement amount. That way, you can have most of your money on hand and a little set aside in the time deposit account for safekeeping. Conversely, perhaps you can afford not to touch your money for a prolonged period and want a higher yield on interest. In that case, it’s a good decision to keep your money in the deposit account for longer than a year.

There are several good reasons to open a time deposit account of your own. They include the following.

• It’s a low-risk investment strategy. If you lean on the conservative side about your investments, or you’ve only just started investing, this is a great option for you. Though the return may not be as high as other financial instruments, like stocks or bonds, the risk is certainly lower. Plus, your interest earnings are fixed and guaranteed for the amount that you deposit. Suffice to say, you’ll know exactly how much you’ll earn—and you’ll know that your money is in a safe place.
• A time deposit account can help you practice financial discipline. Making the decision to set aside money in a time deposit account may also help you achieve greater financial freedom. You’ll be able to practice saving larger amounts of money at a time, and at the same time, you may learn to avoid impulse spending.
• You can keep time deposit accounts in the Philippines for other currencies. You’re not limited to keeping only Philippine pesos in your time deposit account. With an option like Robinsons Bank’s US Dollar Time Deposit Account, you can gain interest on the US dollars you’ve stored away.
• It’s very easy to set up. As compared to acquiring other financial instruments for investment, opening a time deposit account is a breeze. All you’ll need to do is submit a form, deposit your money, and hold on to your certificate of time deposit. No need to find a portfolio manager or go through loads of red tape just to start investing in this way!

Robinsons Bank is one of the most trusted banking brands in the Philippines. We commit to giving you the smoothest and most hassle-free experiences when opening, managing, and withdrawing from your time deposit account. Here are the reasons you should entrust us with growing your money in a dedicated time deposit account.

• Our process is simple. We promise a quick and straightforward method for opening a new time deposit account. That applies whether it’s the Peso Special Savings Account, Peso Time Deposit Account, or US Dollar Time Deposit Account that you want.
• You can choose to start small. There’s no pressure to have large sums of money on hand just to open a new time deposit account. In fact, our Peso Time Deposit program requires a minimum placement amount of only PHP 1,000!
• We offer flexible maturity. Your time deposit at Robinsons Bank can mature at the rate you want it to. You can deposit your money for as short a time as 30 days and for as long a time as 5 years. You are the one who decides whether your time deposit will be a short-term or long-term investment.
• We are clear and upfront about our interest rates. Our pages for Peso Special Savings Accounts, Peso Time Deposit Accounts, and US Dollar Time Deposit Accounts also detail interest rates per annum. You can check how much interest you’ll be able to earn given your deposit amount and the maturity time. These are based on up-to-date market rates. Our staff can also help you with your computations.
• We have excellent and consistent customer service. We apply a very high standard of service when it comes to managing our clients. Those who open time deposit accounts with us are no exception. You can expect the same rigor, attention to detail, and timeliness from our staff the whole time that your money’s locked into your account.

There are three types of time deposit account that you can open at Robinsons Bank. They are the following:

• Peso Special Savings Account. The Peso Special Savings Account can help you accumulate higher returns than an ordinary savings account. The minimum placement amount is PHP 25,000. The terms range from between 35 days and 182 days until maturity.
  
• Peso Time Deposit Account. The Peso Time Deposit Account will reward you with higher interest the longer you maintain its balance. The minimum placement amount for this account is only PHP 1,000. The terms can take from 35 days to 5 years to mature, depending on what arrangement you choose.
  
• US Dollar Time Deposit Account. The US Dollar Time Deposit Account is where you can store your US dollars for a fixed period in order to gain interest. The minimum placement amount for this type of account is USD 1,000. The terms for this account can take between 35 days and 5 years to mature.

Before you open a new time deposit account with Robinsons Bank, think about it in relation to your other investments and expenditures. Decide on whether you see this new time deposit account as a short-term investment or as a long-term investment. You should also be sure about how much you’re willing to set aside, given that you need money on hand for your regular expenses.

Once you’ve decided how much money you want to put away and for how long, you’ll be ready to open a new account. You can do so with Robinsons Bank in three simple steps:

• Learn about the terms and interest rates for the type of time deposit account you want to open.
• Fill out the forms given to you by Robinsons Bank staff. Don’t forget to provide copies of your valid IDs.
• Receive your certificate of time deposit, which serves as the official documentation for the account.

Congratulations! All you will need to do is wait until the fruits of your hard work and patience have ripened. Upon maturity, you will already be able to collect interest from your time deposit account!

Once you’ve opened a Peso Special Savings Account, Peso Time Deposit Account, or US Dollar Time Deposit Account with Robinsons Bank, here are some reminders.

• The certificate of time deposit contains important details about the account, such as its interest rate and maturity rate. Hold on to this document for the duration of the term. Keep it in a safe place and be sure not to lose it.
• Your time deposit is insured up to PHP 500,000 by the Philippine Deposit Insurance Corporation (PDIC), just like any other account.
• Your earnings from the time deposit account will be taxed. You may ask Robinsons Bank staff for help in calculating how much you’ll pay for final withholding tax and documentary stamp tax. If your term is set for a longer period, however, withholding tax will become less of a problem. Time deposits that mature in under 3 years will be taxed 20%. After 3 years, the taxed amount will only be 12%, and after 4 years, it will be reduced even further to 5%. You will no longer need to pay withholding tax for time deposit terms that mature in five years or more.
• Though it’s not ideal to withdraw money from your time deposit account, it will be possible in case of emergency. But take note that early withdrawal from the time deposit account merits a penalty. It will be taken from a percentage of the interest you’ve earned in the account.

Be sure to keep these in mind as you let your money grow in your Robinsons Bank time deposit account!