Time Deposits

[bRIX]

hi guys... i'm planning to open a time deposit account. let's say i open an account in the bank's branch in makati then i decide to add more money the following maturity date can i go to other branches to do that task? thanks.

[linusoft]

hi guys... i'm planning to open a time deposit account. let's say i open an account in the bank's branch in makati then i decide to add more money the following maturity date can i go to other branches to do that task? thanks.

<{POST_SNAPBACK}>

 

it's way better to invest your money in mutual fund. the return is between 15-20% per annun, tax-free. in time deposit you're lucky enough if you get 10% per annum less 20% gov. tax.

click here for more info on mutual fund.

[ryanarjay]

i think the answer is NO, cause its different to a regular deposit i mean cash deposit. u can deposit to any branches of your bank because of the online system but for a time deposit transaction i believe ur only allowed to transact to your mother branch.

[Mandrake]

hi guys... i'm planning to open a time deposit account. let's say i open an account in the bank's branch in makati then i decide to add more money the following maturity date can i go to other branches to do that task? thanks.

<{POST_SNAPBACK}>

 

Normally, the banks discourage this kind of transaction. They would usually encourage you to deal directly with the branch where your TD is maintained simply because you would need to get your copy of the Certificate of Time Deposit directly from your branch which handles your acccount.

 

However, when you are based overseas certain banks with foreign branches or correspondent banking tie-ups in the host country would accomodate your request provided, of course, you have your Original Copy of your CTD and other identification they will require from you before they accept your remittance deposit to add up to your TD upon maturity.

 

On the issue of TDs vs. Mutual Funds (MFs), it is true that MFs provide higher yields but usually the required amount of placements are more than what TDs would otherwise require. You can open a TD for only P5,000 (equivalent to $100). Some MFs require as much as P1Million as initial placement but the yield is definitely higher.

[hitman531ph]

hi guys... i'm planning to open a time deposit account. let's say i open an account in the bank's branch in makati then i decide to add more money the following maturity date can i go to other branches to do that task? thanks.

<{POST_SNAPBACK}>

 

The answer is NO.

 

A time deposit is not a demand deposit. This means you can not withdraw (much less issue a check) or add deposits to the time deposit funds any banking day/time you please.

 

That also means, you have to return to the branch where you opened the time deposit account to renew the time deposit. Upon renewal, you may add more amounts to the original amount (plus the interest already earned) and roll it back to the time deposit.

[Dr_PepPeR]

it's way better to invest your money in mutual fund. the return is between 15-20% per annun, tax-free. in time deposit you're lucky enough if you get 10% per annum less 20% gov. tax.

click here for more info on mutual fund.

<{POST_SNAPBACK}>

 

Why go to a mutual fund when you can invest in a (Unit Investment Trust Fund) UITF instead? Most mutual funds let banks do the investing for them so you add another layer of fees to your potential earnings. The concept is the same and the BSP monitors the banks while it is the SEC that monitors mutual funds. The BSP is stricter.

[the messiah]

Why go to a mutual fund when you can invest in a (Unit Investment Trust Fund) UITF instead? Most mutual funds let banks do the investing for them so you add another layer of fees to your potential earnings. The concept is the same and the BSP monitors the banks while it is the SEC that monitors mutual funds. The BSP is stricter.

 

i think time deposits are for people who doesnt want to take in too much risk, as oppose to UITF, i think lots of people lose money in UITF for the past few months but the yield is comparatively higher compare to time deposit

 

the Feds kept on increasing the interest rates, therefore speculators n investors change their moneys to dollars making the dollar stronger compared to other currencies in the region, so if ur betting for a weaker dollar during the past few months u'd be losing money, i think this is wat happen in the past few months

 

people shud be aware that they can lose money on mutual fund kasi para narin tong sugal, unless majority ng nasa portfolio ay invested on gov't securities, dito pumapasok ang risk return tradeoff

Edited July 31, 2006 by Aldrich_Baccarat

[VentureMaker]

Time deposit rates are often negative when inflation is factored in. How can you rely on a depreciating fund for your future?

[Josh29]

^^ These comments are true. Investment instruments depend on the compatibility with the depositors' risk appetite. Conservative investors such as retirees and older people would just prefer their hard earned money to yield some profits and lower risk.

 

Time deposit might be considered a loss if inflation is factored in. But inflation is an instrument that cuts across all segments using a weighted mean method to derive the figures. However, all deposit instruments are affected by inflation. Inflation affects money even if they are not invested or deposited in financial institutions.

 

The critical question is how to invest money that would outpace inflation and yet have considerable amount of risk removed. After all, the retirees are the ones who have the most amount of money.

[Mandrake]

^^ These comments are true. Investment instruments depend on the compatibility with the depositors' risk appetite. Conservative investors such as retirees and older people would just prefer their hard earned money to yield some profits and lower risk.

 

Time deposit might be considered a loss if inflation is factored in. But inflation is an instrument that cuts across all segments using a weighted mean method to derive the figures. However, all deposit instruments are affected by inflation. Inflation affects money even if they are not invested or deposited in financial institutions.

 

The critical question is how to invest money that would outpace inflation and yet have considerable amount of risk removed. After all, the retirees are the ones who have the most amount of money.

 

Many investors who have the capacity would usually buy USD and place these in USD fixed placements for 30-d judging how the peso is performing and how well these investors make calculated risks in buying & selling them to generate some profits.

[the messiah]

Many investors who have the capacity would usually buy USD and place these in USD fixed placements for 30-d judging how the peso is performing and how well these investors make calculated risks in buying & selling them to generate some profits.

 

 

u can also invest ur money on Gold bullions, a lot of people do this esp in times of war

 

sadly our financial industry is not yet as mature lyk those in singapore or in the US where there is a future or commodity market

[Dr_PepPeR]

There are other alternatives, as the good St Scho prof has said. You might want to consider Unit Investment Trust Funds, the Common Trust Fund's successor. Visit the UITF thread here for more details. Just click the link on my signature. Thanks.

[benz666]

There are other alternatives, as the good St Scho prof has said. You might want to consider Unit Investment Trust Funds, the Common Trust Fund's successor. Visit the UITF thread here for more details. Just click the link on my signature. Thanks.

 

Yes, I do agree that you should stick to UITF's since it can provide a higher yield compared to the old fashioned TD (unless it is double your money in 5years promo which I suggest that you hunt for those in savings, development and thrift banks and applying a loop hole in PDIC regulations to protect your principal fairly.). But if you really want a yield of a TD(if you really want it) yet you can withdraw it anytime, I suggest that you should put your money in a money market mutual fund/UITF (like sun life and i-bank has one as I know.)

 

or if you are really lucky to find one, invest it in a Retail Treasury Bonds issued by the government and sold in 5k multiples that has a yield to maturity of approx 8 ~ 10% interest payable quarterly and can be traded in the secondary market! I'm also looking for those din in banks. Try scouting for one and do inform me if you could I find one din since i'm looking for it since it is a good way to park your money like those Money Market Funds for the short - term.

 

PEro it all depends on your horizon nga ika nga. If you have questions about these. Fire away.. :headsetsmiley:

[czekloy]

There is no single investment na THE best. Best is a "relative" term. Parang beauty yan. Ang maganda sa akin, maaaring hindi maganda sayo. Point is whether time deposit yan or uitf or mutual funds or stocks or bonds or gold or silver or platinum or real estate or even your own business, it depends on the person (investor).

 

And risk comes in if you lack knowledge. Like for me, for now it is risky to invest in forex kasi I haven't learned it pa eh. Kasi I'm still in the process of learning it. Pero as soon as I learn it, the risk will be lowered.

 

Sabi nga ni Mr. Francisco Colayco, any investment that yields (after-tax) 2-4% higher than the inflation rate is a very good investment. May commercial bank na nag-ooffer as high as 6.5% tax-free. Inflation rate last month was 5.7%, so mas malaki siya ng 0.8%. By Colayco's standards, hindi siya okay.

 

You guys can read the comparative study I made at http://ph.88db.jobsdb.com/PH/Views/PostDet...px?PostID=70953.

 

Cheers!!!

[czekloy]

There is no single investment na THE best. Best is a "relative" term. Parang beauty yan. Ang maganda sa akin, maaaring hindi maganda sayo. Point is whether time deposit yan or uitf or mutual funds or stocks or bonds or gold or silver or platinum or real estate or even your own business, it depends on the person (investor).

 

And risk comes in if you lack knowledge. Like for me, for now it is risky to invest in forex kasi I haven't learned it pa eh. Kasi I'm still in the process of learning it. Pero as soon as I learn it, the risk will be lowered.

 

Sabi nga ni Mr. Francisco Colayco, any investment that yields (after-tax) 2-4% higher than the inflation rate is a very good investment. May commercial bank na nag-ooffer as high as 6.5% tax-free. Inflation rate last month was 5.7%, so mas malaki siya ng 0.8%. By Colayco's standards, hindi siya okay.

 

You guys can read the comparative study I made at http://ph.88db.jobsdb.com/PH/Views/PostDet...px?PostID=70953.

 

Cheers!!!

 

CORRECT LINK FOR MY COMPARATIVE ANALYSIS OF TIME DEPOSIT IS AT http://ph.88db.jobsdb.com/ph/views/postDet...px?PostID=70953