Jump to content

Recommended Posts

  • Replies 79
  • Created
  • Last Reply

Top Posters In This Topic

^^ 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.

This is a good analysis on the nature of investing. In the end, there will always be risk, the tricky part is how to make it the most minimal.

Link to comment
  • 10 months later...

When someone offers you a return that is way off market, beware. Be very scared. In this instance, the market rate for a 5yr TD is about 7% (my guess), now someone offers 20%???

 

Please always consider Counter Party Risk!

 

The Risk Return equation in investments always holds true.

 

J

 

Anybody heard of the Rural Bank of Paranaque 5 year time deposit na 20% P.A.? Banking peeps whats your advice on this? Any inside information kung stable ba ang bank na ito?
Link to comment
When CTFs became mutual funds they were called UITFs, so they're basically the same animal (both are marked to market). The last time i checked, the advantage of UITF is no taxes (less deductions) while mutual fund companies are more marketing oriented meaning more features and flexibility (ie. monthly interest payouts, automatic payment of insurance premiums from interest earned, etc.). If any of you guys have any more inputs on this kindly post away :)

 

You're right, CTFs and UITFs are basically the same animal in pooling of funds concept, except that UITFs are now marked to market, investments are restricted to liquid securities and a third party custodian is required, all geared to prevent abuses by the fund manager. Mutual Funds, while having the same concept, issue shares instead of units and are regulated by the Securties and Exchange Commission whereas UITFs are regulated by the Central Bank. In general, I think Mutual Funds are more aggressive in terms of investing to make up for the up-front fees they levy on their subscribers.

 

Anybody heard of the Rural Bank of Paranaque 5 year time deposit na 20% P.A.? Banking peeps whats your advice on this? Any inside information kung stable ba ang bank na ito?

 

 

Here are some links on talks regarding Bank of Paranaque.

 

http://www.pinoymoneytalk.com/forum/index.php?topic=6963.0

http://www.pinoymoneytalk.com/forum/index.php?topic=6471.90

 

At least you will know the issues before deciding whether to invest there or not.

 

The Legacy Group which owns RBOP as well as several other rural banks have left a bad taste in the mouth for many large commercial banks. The links provided above may be worth reading if you want to see some of the issues they have.

 

guys!

 

why don't you ask your banks if they are offering the Special Deposit Account or SDA? I think it offers a big interest rate.

 

Some banks require a minimum of P1 Million in order to invest in SDA, although I have heard that BDO accepts P100,000.

Link to comment

Got this offer in an email message forwarded to me. Looks tempting...is it too good to be true???

 

 

18% P.A. 5-YEAR TAX-FREE TIME DEPOSIT, WITH PDIC GUARANTEE

[This announcement is also available at

http://www.marketlinkph.com/html/mlink_ban...timedeposit.htm]

 

A PDIC-member Bank is offering to the General Public 100% safe

Fixed-Return Bank Placements with Monthly Interest, ideal as haven and

hedge against inflation, and suitable as Pension or for sustainable Family

Support.

 

This is a seasonal offer. Please read on for short overviews of:

 

- ENTITIES RELEVANT TO BANKING AND GENERAL INFO ON BANKING SECURITY AND

REGULATION

- PLACEMENT AND DOCUMENTARY REQUIREMENTS

- TERMS OF OFFER (RATES, SAMPLE CALCULATIONS)

- FORM

- WHY THIS MEDIUM OF PROMOTION

 

If you are interested making placements with higher interest, or to

stabilize your portfolio (as opposed to investing purely in unpredictable

equity market, mutual funds or business), or simply to provide your

Philippine-based family with regular allowance WITHOUT direct cost to you,

we invite you to fill out the NO RISK, NO OBLIGATION FORM today.

 

Few businesses reach their 20th 25th or 50th year. The Bank's operation

background of over 50 years, coupled with PDIC, are your assurance. We are

making this announcement only for a limited time.

Link to comment
Guest lustfortravel

^^^ this is a time deposit of a rural bank offering you 18% p.a. and assuring you of their legitimacy ( hence the reference on being over 50 years in existence ) plus emphasizing on the PDIC coverage to make you feel you are protected ( at least up to P250K of your deposit).

 

i'm just curious on why the bank is not named in the ad. why remain anonymous, offering clients a tempting 18% p.a. yet hiding behind the "PDIC member with over 50 years in existence" reference? if everything they claim is true, then they should be transparent since they have nothing to hide. i'm sorry but i don't buy the " we are evaluating this medium of advertisement for effectiveness" response. all they had to do was emphasize on the 18% p.a. TAX FREE ( when the bigger banks will give your around 4-5% p.a. at the moment) to capture interest. ;)

 

i have a pretty good idea under what group this rural bank belongs to, anyway. ;)

Edited by lustfortravel
Link to comment
^^^ this is a time deposit of a rural bank offering you 18% p.a. and assuring you of their legitimacy ( hence the reference on being over 50 years in existence ) plus emphasizing on the PDIC coverage to make you feel you are protected ( at least up to P250K of your deposit).

 

i'm just curious on why the bank is not named in the ad. why remain anonymous, offering clients a tempting 18% p.a. yet hiding behind the "PDIC member with over 50 years in existence" reference? if everything they claim is true, then they should be transparent since they have nothing to hide. i'm sorry but i don't buy the " we are evaluating this medium of advertisement for effectiveness" response. all they had to do was emphasize on the 18% p.a. TAX FREE ( when the bigger banks will give your around 4-5% p.a. at the moment) to capture interest. ;)

 

i have a pretty good idea under what group this rural bank belongs to, anyway. ;)

 

Me too, ma'am. :thumbsupsmiley:

Link to comment
Guest lustfortravel
Mine is only 3.24 % P.A. which BDO SM Sucat branch, have time deposited my savings for 180 days

 

Saan po yung 4-5% P.A. ?

 

sorry, i was referring to SDAs actually which will give you a net rate of 4.4- 4.6% net p.a. ( or depending how much your bank is selling it for) for a 30 day placement. time deposits normally have lower rates. how much is your investment? i think BDO and some other banks accept SDAs for as low as P100k.

Edited by lustfortravel
Link to comment
sorry, i was referring to SDAs actually which will give you a net rate of 4.4- 4.6% net p.a. ( or depending how much your bank is selling it for) for a 30 day placement. time deposits normally have lower rates. how much is your investment? i think BDO and some other banks accept SDAs for as low as P100k.

 

Headline inflation hit 12% already in July... di pa din ba sumusunod interest rates of local banks?

I think the 91d T-bill is already in the 6% level (but then again this is gross). .. frakin taxes.

ah well...

Link to comment
  • 2 weeks later...
  • 3 weeks later...
  • 1 month later...
You're right, CTFs and UITFs are basically the same animal in pooling of funds concept, except that UITFs are now marked to market, investments are restricted to liquid securities and a third party custodian is required, all geared to prevent abuses by the fund manager. Mutual Funds, while having the same concept, issue shares instead of units and are regulated by the Securties and Exchange Commission whereas UITFs are regulated by the Central Bank. In general, I think Mutual Funds are more aggressive in terms of investing to make up for the up-front fees they levy on their subscribers.

 

 

 

 

 

 

The Legacy Group which owns RBOP as well as several other rural banks have left a bad taste in the mouth for many large commercial banks. The links provided above may be worth reading if you want to see some of the issues they have.

 

 

 

Some banks require a minimum of P1 Million in order to invest in SDA, although I have heard that BDO accepts P100,000.

i heard the legacy has a problem right now. they can't pay out the inerest right now.... my friend in cdo told me last week :

Link to comment
Guest lustfortravel
i heard the legacy has a problem right now. they can't pay out the inerest right now.... my friend in cdo told me last week :

 

it would be interesting to see how this thing goes in the next few weeks. i heard the same thing in other parts of the country. frankly, it seemed like a house of cards just waiting to collapse . it looks like investors are demanding return of their principal - which would affect their already tight cash flow.

 

good luck to them.

Link to comment
JUST PLACED SDA IN BDO,,, 5.6 % ANG RATE,, CAN ANYONE EXPLAIN HOW SDA WORKS AND HOW COME THE INTEREST RATE IS HIGH,, ANYWAY THE BANK TOLD ME ITS SECURE AS WELL. CALLING EXPERTS.... :)

 

SDA stands for Special Deposit Account offered by the Bangko Sentral ng Pilipinas to Banks who in turn offer it to their Treasury or Trust clients. The tenors are in 14 days and 30 days only. This facility was intended to siphon off excess liquidity from the market by offering relatively higher rates so as to be attractive to investors. In your case you are probably a branch client that booked you under a trust arrangement with BDO. BDO trust then invested your funds (together with their other trust clients) with the Bangko Sentral's SDA. In fact, the interest rate of the SDA is 6 percent something but you only get 5 percent something because of the withholding tax and trust fees. You can consider it a secure investment because, well, it's a deposit with the Bangko Sentral.

Link to comment
  • 4 weeks later...
Guest lustfortravel
it would be interesting to see how this thing goes in the next few weeks. i heard the same thing in other parts of the country. frankly, it seemed like a house of cards just waiting to collapse . it looks like investors are demanding return of their principal - which would affect their already tight cash flow.

 

good luck to them.

 

well, it's all over the papers. legacy has closed. i hope none of you guys had any investments there.

Link to comment

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...