How To Compute For A Time Deposit

[malcoxx]

Hi All,

 

I would like to know which bank locally offers the best interest rates for a time deposit. I would my money to earn some interest since I am not using it as of this moment. Its not that big, but a few bucks added is still a good thing.

 

If somebody could compute for me the possible interest I would earn from 50k to 70k deposit.

 

(Mods if this is in the wrong place, please do move it. sorry for the inconvenience)

 

An email could also be nice, dgr8malcoxx@yahoo.com

 

THANK YOU!

[Dr_PepPeR]

Hi All,

 

I would like to know which bank locally offers the best interest rates for a time deposit. I would my money to earn some interest since I am not using it as of this moment. Its not that big, but a few bucks added is still a good thing.

 

If somebody could compute for me the possible interest I would earn from 50k to 70k deposit.

 

(Mods if this is in the wrong place, please do move it. sorry for the inconvenience)

 

An email could also be nice, dgr8malcoxx@yahoo.com

 

THANK YOU!

 

Interest rates are pretty low all across the board nowadays. Your rate will depend on the length of time and the amount. To compute for your income, multiply your cash by the rate which is on a per annum basis. The result is your interest income for one year then multiply this by x/360 where x is the number of actual days it is invested then multiply it again by .8 to get your income net of withholding tax.

[Google]

yes they are too low now.

to cite an example: i placed a 300k time deposit with BDO around 4 months ago. for one month, the interest was only 300 pesos++. may 20% deduction pa for witholding tax. so it means that if i leave it there for a year (300*12) = 3,600 less 20% = 2,880.00.

 

if you have around 70k, invest it in bond (mutual funds). its liquid and the average return for 2007 is around 14% PA. wala pang withholding tax. although may fees sila na dinededuct if you place in into the fund for below one year. but then again, subject to rate increase and decrease ang bond funds, although minimal lang.

 

(70,000 * 14%) = 79,800.00

[Chi-Chi]

That's very strange that the interest rates in the Philippines are really low right now. It was expected by the banks in the United States that interest rates will surge up across the whole world because of America's economy right now.

[Dr_PepPeR]

That's very strange that the interest rates in the Philippines are really low right now. It was expected by the banks in the United States that interest rates will surge up across the whole world because of America's economy right now.

 

Many factors contribute to this, locally money supply is still high, everyone, even the government seems to have a lot of cash with no investment outlets in sight. There is hesitation to lock in for long term due to the fears of the recession in the US.

[pedrupenduku]

sir, sorry if this is OT, but since you are talking about interest, how do you compute the interest rates in a bank if you get a loan? like for example a housing loan, if you get 1M with a 11% interest rate for 20 years, how much would the interest and how do you/they computer that?

 

TIA

[Dr_PepPeR]

sir, sorry if this is OT, but since you are talking about interest, how do you compute the interest rates in a bank if you get a loan? like for example a housing loan, if you get 1M with a 11% interest rate for 20 years, how much would the interest and how do you/they computer that?

 

TIA

 

Normally for a housing loan, they compute for the effective rate, which is the annual interest rate multiplied by the outstanding balance of the loan. If you pay for the principal on a monthly or quarterly basis, then the next interest payment would be computed only on the outstanding balance left, since you had already paid part of the principal. So technically, your interest payments would get smaller and smaller as your principal amount outstanding diminishes over the long term. You have to be careful about banks or lenders that charge straight line interest. In other words, the interest payment is computed based on the principal amount of the loan of 1 million all through the 20 years.

[pedrupenduku]

Normally for a housing loan, they compute for the effective rate, which is the annual interest rate multiplied by the outstanding balance of the loan. If you pay for the principal on a monthly or quarterly basis, then the next interest payment would be computed only on the outstanding balance left, since you had already paid part of the principal. So technically, your interest payments would get smaller and smaller as your principal amount outstanding diminishes over the long term. You have to be careful about banks or lenders that charge straight line interest. In other words, the interest payment is computed based on the principal amount of the loan of 1 million all through the 20 years.

 

Thanks... I'll take note of that sir.

[Guest sinoda]

^ very diverse talaga mga interests ni doc pepper hehe

[Dr_PepPeR]

^ very diverse talaga mga interests ni doc pepper hehe

 

Legal matters and scale models and some other stuff constitute my interests sir.

[trent9]

@google

 

do u know the minimum for mutual funds for BDO, coz' currently, the min for BPI mutual fund and fixed income is 100thou.

[bgates1]

how do we invest in bonds?

 

yes they are too low now.

to cite an example: i placed a 300k time deposit with BDO around 4 months ago. for one month, the interest was only 300 pesos++. may 20% deduction pa for witholding tax. so it means that if i leave it there for a year (300*12) = 3,600 less 20% = 2,880.00.

 

if you have around 70k, invest it in bond (mutual funds). its liquid and the average return for 2007 is around 14% PA. wala pang withholding tax. although may fees sila na dinededuct if you place in into the fund for below one year. but then again, subject to rate increase and decrease ang bond funds, although minimal lang.

 

(70,000 * 14%) = 79,800.00

[Google]

@google

 

do u know the minimum for mutual funds for BDO, coz' currently, the min for BPI mutual fund and fixed income is 100thou.

 

BDO's fixed income and balanced fund is at 10k. Peso money market fund is at 100k.

[Guest lustfortravel]

@google

 

do u know the minimum for mutual funds for BDO, coz' currently, the min for BPI mutual fund and fixed income is 100thou.

 

as far as i know, BPI already lowered it to 50k minimum and 10k for additional placements. that's what my relationship manager told me.

[marketmover]

how do we invest in bonds?

 

 

you can either go for the bond funds or buy the actual bonds yourself. I believe the bigger banks like bdo or bpi has a minimum of 50k - 100k. There are smaller banks however that sell retail treasury bonds which require a minimum investment of 5k only. I believe Asiatrust Bank sells these retail treasury bonds.