Bdo Time Deposit

Posted By admin On 29/07/22

BDO US Dollar Time Deposit is one way to put your hard-earned dollars into action while giving you financial edge. With it, you’ll get higher interest rate returns paid at a specified future date on short term investments. NOTE: Interest rates are INDICATIVE and are subject to change without notice. You can set a time deposit to roll-over to a new placement at the end of the term with the original amount or with the interest earned included. Your money is protected The Philippine Deposit Insurance Corporation covers up to PHP 500,000 of your total deposit, regardless of the number of your accounts and how much they contain.

  • Take note of the service fees and charges of having a time deposit account. BDO will deduct 20% withholding tax from the interest you earn on your time deposit. And if you terminate your time deposit account early or if you want to withdraw the money before the term ends, you will be charged a pretermination fee (penalty).
  • Banco de Oro (BDO) offers a rather shorter time deposit maturity of 30, 60, 90, 180, 360 Days with a minimum initial deposit of PHP1,000. While the interest is enticing enough for people to use time deposits as a means of low-risk, medium return investments, this type of deposit account may not be right for everyone.
  • The initial deposit amount for this time deposit is P ₱50,000.00 and clients can do additional placements or deposits in multiples of ₱1,000.00. The term period for this account is fixed at 5 years and 1 day and interest is calculated annually.

What Is A Time Deposit?

A time deposit, also referred to as certificates of deposit, is a fixed deposit at a bank, which you will not have access to during the agreed time period in exchange for a higher interest rate compared to a savings account. Identical to an investment account, you will be eligible to a higher premium rate as a return on your investment. Time deposit investment rates generally differ from interest range of 1.00% to 5.00%.

Time Deposit Tenure

Usually time deposit terms vary from 1, 2, 3, 6, 9 or 12 months. But with other banks, they can offer to an extent of five to six years. Regarding the maximum time deposit tenure, it would usually depend on the depositor who has full control on the tenure. In general, time deposit terms shift from 1 to 12 months. Whereas different banks can also offer to a degree of up to five to six years.

Time Deposit Fees And Charges

Are there any charges when I invest my money in a Time Deposit? Yes, there will be charges. Interest earned on time deposits is subject to a final tax of 20%. These are charged every month when an interest is earned on your account. Aside from taxes, it is also subject to stamp duties if the principal amount exceeds ₱250,000.00, in which you will be charged ₱1 for every ₱200 after it.

Time Deposit Requirements

The only requirement for a time deposit is, that you have available funds which you will not need to access over a certain amount of time. Depending on the bank, there might be a minimum amount or limitations regarding the time period. But in exchange for all the copies of identification and initial amount you will give to the bank, the bank will give you a certificate of time deposit.

Is Time Deposit Worth Investing In?

Certainly! If you are a person who is risk-averse and have very little risk appetite, time deposit is definitely for you. What makes time deposit an ideal investment option is that the returns are continuous and predictable. It is pretty straightforward and there are certainties. You just have to wait for the waiting period to be finished and you'd expect a specific earnings at the end of it.

How To Find The Best Time Deposit Interest Rate?

There are various offers by banks in the Philippines. We have put all of them together and created a comparison tool, which presents you the best interest rates based on your available savings and the time period. Needless to say, the usage of our comparison tool is free of charge. Once you have found the most favorable bank you may apply for it online.

A time deposit is a good option to “park” your money. The interest is considerably lower than other investment options, but the security it brings is what some people prefer.

This article will address the most common misconception of people about the interest rates of time deposit. Some people think that if your bank says that their interest rate is 2% then you’ll get the whole 2% even if you prematurely withdraw the funds or if you got the shorter term.

PHOTO CREDIT: Pixabay

You won’t get the whole 2%. Here is the proper way to compute your time deposit interest.

Let’s say you deposited P100,000 in a time deposit account with 2% interest per annum. You originally opted for the 1-year maturity but an emergency came and you have to withdraw your money after just 60 days.

You will not get P102,000 which is the basic 2% computation. Here are the steps:

STEP 1

Bdo Time Deposit Account

Get the principal amount and multiply by the interest per annum.

P100,000 * 2% = P2,000

STEP 2

Get the total number of days and divide by 365 days. In this case, 60 days.

60 / 365 = 0.16

STEP 3

Multiply by your total in step 1.

2,000 * 0.16 = P320

STEP 4

Multiply by .80. This is because the interest that you will get from a time deposit account will be subject to 20% tax. This means you only get 80% of your interest earnings.

320 * 0.80 = P256

Bdo Time Deposit

STEP 5

Singapore

Bdo Time Deposit Calculator

Add your step 4 total to the principal amount, then that is what you will get from the bank. Aside from the penalties and charges for premature withdrawal.

Bdo Time Deposit Rate

Deposit

Bdo Time Deposit Rate 2020

P100,000 + P256 = P100,256.00

Bdo time deposit interest rate

This is the conventional computation, you may also want to ask your bank if they use the 365 count or the 360. When computing your interest for premature withdrawal of time investment funds, you also have to remember that aside from the tax and the low interest, you will also be subject to penalties or charges depending on the bank.