Saving money in the banks is one of the safest ways of keeping our hard-earned money. It’s also one of the safest ways of making our money grow. However, as the years go by, making your money grow in the bank seems almost impossible because of the decreasing interest rate. Luckily, there are still banks that offer better interest compared to others. If you are looking for a bank where you can put your money in then check out our list of high yield peso time deposit accounts in the Philippines with a 5-year term.
A short introduction about Time Deposit
A time deposit account is similar to a savings account but it’s more appropriately categorized as an investment account. It is a relatively low-risk investment where you keep your savings for a set amount of time.
Please be aware that the maximum insurance coverage for a deposit account is P500,000 per depositor. As per PDIC, “All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together.” Here’s an online brochure provided by PDIC that explains how deposit insurance works.
Some may find that the deposit insurance coverage is a bit on the low end, and it may be especially for people who have a higher net worth. It might change though in the future and we might see an increase in the deposit insurance coverage if House Bill No. 5812 is approved and enacted. This bill aims to increase the coverage from P500,000 to P1 Million.
Please also take note that the initial deposit and interest vary depending on the bank that you choose. And the same goes for the terms of placement or how long you need to keep your money on the bank. The longer you keep your money on the bank, the better the interest is. If you keep your money for the maximum lock-in period which is 5 years and 1 day, then the interest that you’ll earn becomes tax-free.
And also, since this investment has a lock-in period or terms of placement, please be aware that there is a pre-termination fee associated with terminating or closing your time deposit account. The fee might vary from bank to bank, so be sure to confirm this with the bank before you open an account.
To maximize the benefit that you may get in a time deposit account make sure to compare the offerings of different banks.
Here’s our list of high yield peso time deposit accounts in the Philippines with a 5 Year Term:
Maybank Philippines ADDvantage 5 Year Time Deposit Account
Maybank offers the highest interest among all banks mentioned here at 3.5% with a minimum placement of P50,000. Customers have the option to withdraw their interest monthly to be credited to their Maybank Philippines savings account or upon maturity.
RCBC Peso Time Deposit Account
RCBC Peso Time Deposit accounts give their customers options on terms of placements. And just like most banks, the highest interest, of course, is available for the longest placement which is 5 years. The interest in their long term deposit product also varies depending on the amount of the deposit, the highest available interest is 3.5% which can be availed if you deposit P10,000,000 or more.
PSBank Prime Peso Time Deposit
PSBank offers 3.25% for its long-term time deposit placement with a minimum deposit of P50,000. Another benefit of opening a time deposit account with PSBank is that it comes with a credit facility of up to 90% of total placement. And also, the crediting of interest is done monthly and it will be credited to your PSBank savings or checking account.
Eastwest Bank Peso Time Deposit Account
Eastwest Bank is one of the few banks that still offer long term time deposit products. You can actually hold your deposit for 2, 3, 4, or 5 years and one day depending on your choice. The interest for 2 and 3 years is 2.875% and for 4 and 5 years is 3%. Please take note that the deposit held below 5 years is subject to 20% p.a. withholding tax.
Aside from the above-mentioned banks, there are other banks that offer a 5-year placement, however, their interest rates are not mentioned on their websites. If you want to know more about those other banks, please see their respective links below:
- BDO Flexi Earner Peso Time Deposit
- Chinabank Money Lift Plus Peso Time Deposit
- PBCom Sure Earner Time Deposit
Veterans Bank also has a long term time deposit product, and it’s known to be one of the highest interest in the Philippines before. Unfortunately, as of the time of writing, the webpage for that product seems to be not working. I will check it again after the lockdown period and will update this page.
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Do you know any other high yield peso time deposit account in the Philippines with a 5-year term? Feel free to share your recommendation in the comment section below.