I have a need to save money but to take it out around six months later. Philequity doesn’t work as well for short-term investments. So I had to hunt for investments that were more in-line with my short-term needs.
I was referred to Time Deposits and UITFs. And this is some of the information I’ve gathered.
BPI Time Deposits/Savings Accounts
Time Deposits at BPI have a minimum of P100,000 with an interest rate of 1.375% per annum.
For smaller denominations, there is a Platinum savings account that earns P2.125% per annum for a minimum monthly average daily balance of P25,000. This Platinum product has an insurance component bundled with it.
There’s another savings account called MultiEarner that earns 0.875% per annum. That’s not much. 
.
For details, visit www.bpiexpressonline.com
BDO Time Deposits
On the other hand, Banco De Oro has from 30 to 360 days Peso Time Deposits. Current interest rates (Aug 2006) range from 2.75% p.a. (Php 1,000- below 10,000 for 30 days) to 3.75% (Php 10,000 – below 50,000 for 360 days).
The BDO finance adviser told me that these interest rates change, sometimes in a week or sometimes in a month. Comparing to past month’s, the interest rates above are quite low. A 10,000 Time Deposit for 30 days used to be around 3.1% but is currently at 2.875% .
BDO Unit Investment Trust Funds
UITFs are open-ended pooled trust funds operated and administered by a trust entity and made available y participation. The participant in the UITF has a proportionate beneficial interest in the UITF as a whole. – quote from BDO’s UITF product catalogue.
BDO has four Peso Denominated UITF products and two Dollar demoninated UITFs.
• BDO Peso Money Market Fund – Risk Averse
• BDO Peso Bond Fund – Risk Tolerant
• BDO Fixed-Income Fund – Risk Tolerant
• BDO Balanced Fund – Risk Taker
• BDO $ Money Market Fund
• BDO $ Bond Fund
For details, visit www.bancodeoro.com.ph
ka edong
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you have a nice site here.
5 users commented in " Of Time Deposits and Unit Investment Trust Funds "
Follow-up comment rss or Leave a TrackbackI don’t get it. BPI offers a higher interest rate for smaller investment? (Time Deposits at BPI have a minimum of P100,000 with an interest rate of 1.375% per annum.For smaller denominations, there is a Platinum savings account that earns P2.125% per annum for a minimum monthly average daily balance of P25,000)
Also, on the topic of banking, can somebody please explain why banks charge a hefty P200/month on dormant accounts and below min. ADB. Isn’t it advantageous for them that a client’s money is sleeping there. They can use it and earn from it. As for the below minimun ADB, can the account just simply not earn any interests at all? I mean, the money is there with the bank. It’s not as if the bank suffers any loss when it doesn’t move for a long time.
try rural bank of carmen (cebu) i hear they give 20% if u leave for 5ys insur P250000 and also rural bank of paranaQue and rural bank of bais (cebu) they give monthly interest
Interesting. I guess its just a matter of searching for a good deal. Of course, there are risks involved and that needs to be considered when searching for a facility to invest in.
Thanks for the notes, pilipino and Danniel!
ka edong
Regarding the penalty imposed on accounts having balance that is below ADB, in the bank’s perspective, eventhough we think we are not practically not causing any harm to the bank with a below-ADB account but the bank still has to do some maintenance for this account such as sending of monthly customer statements etc. for such accounts that they do not profit anyhow (since it’s too little) so I think it’s just fair that the bank collects us this sort of ‘maintenance’ fee. For dormat accounts charging, i haven’t heard of a retail bank imposing charges for such accounts, i think this applies more on trade finance business type of accounts wherein, the facilities and maintenance offered by banks are much more expensive and designed for bigtime business transactions, thus, the bank expects more activities on this type of account, or else, charge the account holder for not doing so.
Thanks for sharing, Melinda.
Do you blog? do you write?
Sounds like you have some knowledge to share …
edwin
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