Compare and find the best Time Deposit rates and watch your money grow
Compare and find the best Time Deposit in Philippines
Put your money where the higher interest rates are. With a time deposit account, your hard-earned savings will earn higher interest than a regular deposit account. Compare time deposit interest rates today!
Q: What is a Time Deposit?
A Time Deposit or TD is a type of investment account, consistently “risk free”, that has higher interest rates when compared to regular savings account. You can expect to earn more the longer the time deposit stays in the bank.
Q: What do I need to take note of when opening a time deposit account?
Most of the financial institutes that offer Time Deposit provides the service for a minimum of 30 days while the maximum is 5 years and 1 day. You can request the bank if you want a longer tenure.
- Deposit amount
The amount you need to open a time deposit account depends on which bank you will use. Some banks will require a minimum of ₱1,000 to start while others will go as high as ₱50,000. There are also banks who will accept other currencies such as US Dollar, Japanese Yen and the Euro.
You will need to pay a documentary stamp tax upon pretermination or maturity of your deposit and withholding tax on your interest income.
- Early withdrawal fee
The bank will charge a percentage off your interest rate as a penalty for early withdrawal or pre-termination. Also, the bank will charge you the documentary stamp tax.
Q: How is interest income computed (without pre-termination)?
If the term is less than or equal to 1 year, interest income is:
(Interest rate) x
If the term is more than 1 year, interest income is:
(Interest rate) x
Q: How much is the documentary stamp tax?
It is ₱1 for every ₱200 of your time deposit amount or a fraction thereof. This tax is charged on you upon maturity or pre-termination. In most cases, the banks pay this tax for you if you do not make any pre-termination on your time deposit.
Q: How much is the withholding tax that I’m going to be charged on my interest income?
It is 20% for Philippine pesos and 7.5% for foreign currencies. Hence, when you receive your interest income from the bank, the withholding tax is already deducted from it. You will only receive 80% or 92.5% of your interest income, whatever the currency may be.
Q: What happens when I withdraw my time deposit earlier than the maturity date (pre-termination)?
You will get a penalty for early withdrawal. In other words, you will get less than the interest income you should be getting when the time deposit is allowed to mature. Not to mention the documentary stamp tax that you’ll have to pay.
If pre-termination is within first half of the quoted term, interest income will only be 75% of what you are supposed to be getting if you allow your time deposit to mature.
If pre-termination is during the second half of the quoted term, interest income will only be 50% of what you are supposed to be getting if you allow your time deposit to mature.
Q: Is Time Deposit worth investing money on?
The answer is “yes”! TD’s offer higher interest rates compared to regular savings accounts because it offers little risk with the maximum amount of principal returned to your account.
Q: What is PDIC?
PDIC is the Philippine Deposit Insurance Corporation. It insures your Time Deposit account up to a maximum of ₱500,000.