Peso Time Deposit

A time deposit, alternately known as a “term deposit” or “certificate of deposit” outside of the Philippines, is a type of bank deposit with a specified interest rate and maturity date.

Time deposits are in cash and cannot be withdrawn before the set maturity date without a penalty. This in contrast to savings and checking accounts, which are collectively called “demand deposits”, as amounts can be withdrawn at any time with no added charges.

At maturity, the principal amount and the interest paid by the bank to the account holder can be withdrawn or added to and rolled-over for another term. In most cases, the further the maturity date is in the future, the higher the earnings the principal amount can earn through interest.

Time deposits have a better return compared to savings accounts because being able to hold the principal amount a longer time allows a bank to more liquid and gives them a wider range of options for investments and other financial products.

While the rate of return on time deposits is generally not as high compared to stocks and bonds, time deposits carry significantly less risk. This can make them an excellent way to augment an investment strategy.

Interest rates can be determined in a number of ways. They can be linked to the market or determined by the bank’s Asset and Liability Committee (ALCO). In either case, the main appeal of a time deposit is that it ensures the depositor of the principal amount at the set date.

Robinsons Bank currently lets you open long and short term Philippine Peso time deposits as well as US Dollar time deposits. Please visit a Robinsons Bank branch or get in touch with a Robinsons Bank representative to get learn more and open your own time deposit account.

Even when investment alternatives with higher interest rates such as mutual funds, stocks, and bonds have become more accessible, Filipinos continue to open time deposits accounts, such as those offered by Robinsons Bank. Some benefits holders of Robinsons Bank Peso Time Deposit accounts enjoy include the following:

Low risk

Whether you choose long term or short term maturities on your time deposit, you are guaranteed the principal amount plus any earnings on interest. This is in contrast with many investment plans where you could even lose part or all of your investment if the fund is mismanaged or if the economy experiences a downturn. Indeed, many seasoned investors use time deposits as part of their investment strategies or to better round out their portfolios

Easy setup

All you need to do is fill out the account opening form, present at least one valid ID with a photo, and fill out standard signature cards. You can nominate an existing Robinsons Bank account to receive the interest or open a new one for the same purpose as well.

Low principal amounts needed

The minimum placement amount for a short term (under one year) peso time deposit with Robinsons Bank is just P1,000 — far lower than the minimum maintaining for savings and checking accounts in some other banks.

These low minimum placement amounts allow you to be more flexible with your money and allow you to start earning more with less right away.

Better interest rates than a savings account

Interest on time deposits at Robinsons Bank are higher than those on regular savings accounts. This makes the Robinsons Bank Peso Time Deposit perfect for those who don’t need to withdraw funds often but want their money to keep up with inflation.

Assures you of available funding at a set date

Because time deposits guarantee you will get a certain amount of money plus interest by a certain date, they are the perfect way to ensure that you will have money available in the future.

Time deposits are a good way to ensure that cash windfalls you receive from inheritances, sales of expensive assets, or bonuses are kept safe and not spent immediately. They are also a good way to ensure that there is enough cash for important predictable contingencies that are in the near future such as a planned trip, a gift for a child leaving school, or a business venture.

PDIC insurance

As with any bank account, the amount held in your time deposit is insured up to P500,000 the Philippine Deposit Insurance Corporation (PDIC). This further reduces your risk compared to investments in other areas.

To learn more about the benefits of opening a Robinsons Bank Peso Deposit account, visit your nearest Robinsons Bank branch today.