Time Deposits

[chimaera]

I've heard of this homecreadit in our office. A lot of the regular employees have availed of the savings plan. Di pa ako regular kaya di pa ako makaavail sa office.

 

tio pot, pwede ba kahit hindi pa ako regular sa compny magavail ako ng plans? Whats the difference between ISP, ESP, and HFP? According to you, 8% din ang earnings ng ISP, pareho lang sya sa ESP and HFP.

[DonImus]

Just in case people don't know about this yet, PSBank has been promoting this 5year, 6% p.a. (effective rate or so they claim), min of P50k deposit with them. The great thing about it i think is the monthly release of interest earned or you have a choice to reinvest interest back into the principal. There are higher bank rates of course like the ones offered by rural banks but these are classified as more risky than the likes of PSBank. As the saying goes the higher the risk, the higher the return and vice versa. One instrument that can beat this offer with a lower risk factor is Retail Treasury Bonds (RTBs). The recent one offered (first week of August i think) had 6.++% p.a. for 3 years, it's gov't issued so classified as risk-free. Di nga lang monthly interest payout. These RTBs are usually posted in major banks when available which is not that very often sad to say. Basta ang rule of thumb pag fixed income is at least 6-8% p.a. any higher than this and you're better off playing the stockmarket or going into mutual funds.

Edited September 2, 2007 by DonImus

[DonImus]

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.

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

[siraulo1]

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?

[Victor Davion]

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?

 

Last year, I opened a couple of accounts with them at 100K each. So far the monthly interests from both accounts are regularly deposited to my savings account in another bank. No problems for me at all.

 

The nice thing about this 20% P.A. is that it is tax free and that the principal is covered by PDIC. :thumbsupsmiley:

[mr.bukol]

mukang ok to ah , san sa pranaque? gusto yan hehehe

[mr.bukol]

nakita ko na sa ads , 20% nga per annum , tax free daw pag five years , minimum 100k

[id6230]

^^ 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.

[abcdabcdph]

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.

[^JaGuar^]

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?

[lionel]

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.

[Dr_PepPeR]

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.

[cbotc]

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.

[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 August 4, 2008 by lustfortravel

[Dr_PepPeR]

^^^ 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: