How To Compute For A Time Deposit

[Guest lustfortravel]

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.

 

the same minimum of 5k applies to all accredited GS dealers especially if it is bought during the IPO period. I believe that is the published minimum by BTR.

 

personally, i like buying retail bonds only during the IPO period - the accrued interest and the premium will turn me off since the actual net return will be lower than the coupon rate. of course, i might consider it if it is sold at a relative discount.

[dark_questor]

Pakiclarify lang kasi medyo nalilito ako about time deposit computations:

 

For example I have 200k,

then I put 100k into a time deposit account for 60 days at 2.5% interest,

and I put the remaining 100k in a TD account for 30 days at 2% interest. Then after that 30 days, I redeposited the whole amount (100k + interest @ 30 day period) on another 30 day TD account.

 

Which one of the 2 will yield higher interest? Mas maganda po sana kung meron computation including tax deduction.. thanks!

[Charlemagne2008]

Check financial calculator at this site.

 

http://www.bloomberg.com/invest/calculators/index.html

[azayco]

Pakiclarify lang kasi medyo nalilito ako about time deposit computations:

 

For example I have 200k,

then I put 100k into a time deposit account for 60 days at 2.5% interest,

and I put the remaining 100k in a TD account for 30 days at 2% interest. Then after that 30 days, I redeposited the whole amount (100k + interest @ 30 day period) on another 30 day TD account.

 

Which one of the 2 will yield higher interest? Mas maganda po sana kung meron computation including tax deduction.. thanks!

 

2.5% TD for 60d:

 

PHP100000 x 2.5% X 0.80 X 60/365 = W

 

2.0% TD for 30d with reinvestment:

 

PHP100000 x 2.0% X 0.80 X 30/365 = Y

PHP(Y) X 2.0% X 0.80 X 30/365 = Z

 

Compare W and Z. The 0.80 in the formula takes into account the tax rate of 20%.

 

Hope that helps. :evil:

 

Hope that helps.

[pogs109]

2.5% TD for 60d:

 

PHP100000 x 2.5% X 0.80 X 60/365 = W

 

2.0% TD for 30d with reinvestment:

 

PHP100000 x 2.0% X 0.80 X 30/365 = Y

PHP(Y) X 2.0% X 0.80 X 30/365 = Z

 

Compare W and Z. The 0.80 in the formula takes into account the tax rate of 20%.

 

Hope that helps. :evil:

 

Hope that helps.

i think, there something wrong with the last formula.

dapat ata ganito:

(PHP100000 + Y) X 2.0% X 0.80 X 30/365 = Z

[Charlemagne2008]

formula for computing interest:

 

 

A=(P+I) rise to n

 

where:

 

A=amount after period of time deposit

P=Principal

I=interest rate per annum

 

Note: Usually interest rate is per annum, if you want per month just divide n by 30 days.

Edited June 26, 2008 by Charlemagne2008

[azayco]

i think, there something wrong with the last formula.

dapat ata ganito:

(PHP100000 + Y) X 2.0% X 0.80 X 30/365 = Z

 

I think the original formula of:

 

"2.0% TD for 30d with reinvestment:

 

PHP100000 x 2.0% X 0.80 X 30/365 = Y

PHP(Y) X 2.0% X 0.80 X 30/365 = Z"

 

is correct. Here's his question:

 

For example I have 200k, then I put 100k into a time deposit account for 60 days at 2.5% interest,

and I put the remaining 100k in a TD account for 30 days at 2% interest. Then after that 30 days, I redeposited the whole amount (100k + interest @ 30 day period) on another 30 day TD account.

 

:zorro:

[Charlemagne2008]

Note: Usually interest rate is per annum, if you want per month just divide n by 30 days.

 

Please correct, for per month interest rate just divide the per annum rate by 12.

[^JaGuar^]

When interest rates start to move up (and they will very soon - in fact they have started to increase), these Bond Funds (which are valued on a mark-to-market basis) will lose money (bond prices move inversely with interest rates). Past returns are NEVER an indication of future performance.

 

J

 

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

[wallace]

What bank offers the highest monthly time deposit interest?

[LYCHEE]

x% x .80% = y% (APR net of 20% w/tax)

 

 

y% x cash deposit = earnings for the year

[lionel]

mga sir,

if you have a lot of money, lets say, about 1 million, why dont you go investing it into your banks "trust department?" it is a sure way of investing your money. or, why dont you invest into SDA or Special Depository Account?

[zener]

ask ko lang po. anung bangko maganda mag time deposit. 10k po ang principal. maraming salamat po.

[Dr_PepPeR]

ask ko lang po. anung bangko maganda mag time deposit. 10k po ang principal. maraming salamat po.

 

 

Try Sterling Bank, Asia United Bank or GE Moneybank.

Edited August 1, 2009 by Dr_PepPeR

[Niru]

good day to everyone!

 

question lang po.

 

would there be a difference if you invest on two banks rather investing in one. for example i have a capital of 50K.. what would be an advantage to me, would it be investing it all in one time deposit account or divide it in two 25K each in seperate time deposit account, different banks ofcourse...

 

maraming salamat po!

 

:mtc:

 

@ Dr Pepper

 

ill try that GE Moneybank, bago nga iyan thanks!