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.
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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 in the bank.
The longer you keep your money in 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.
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:
|Bank||Product||Minimum Placement||Interest||Terms of Placement||Interest Payout Option|
|Maybank Philippines||ADDvantage 5-Year Time Deposit||P50,000||2%||5 Years & 1 Day||Pls confirm with Maybank|
|RCBC||Peso Time Deposit||P100,000||2.25% - 2.5%||5 Years & 1 Day||Pls confirm with RCBC|
|PSBank||Prime Peso Deposit||P50,000||4.5%||5 Years & 1 Day||Monthly crediting to a specified checking or savings account|
|Security Bank||Peso Time Deposit||P100,000||4.28% - 4.64%||5 & 7 Years||5 Options|
Maybank Philippines ADDvantage 5 Year Time Deposit Account
Maybank offers 2% with a minimum placement of P50,000. Maybank guarantees fixed-rate, tax-free, and exempt from withholding tax (for individuals) your interest earnings are kept virtually intact (Terms and Conditions do apply).
RCBC Peso Time Deposit Account
RCBC Peso Time Deposit accounts give their customers options in 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 2.25% – 2.5% which can be availed if you deposit P100,000 or more (as of the time of update October 24, 2023).
PSBank Prime Peso Time Deposit
PSBank offers 2% 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.
Also, the crediting of interest is done monthly and it will be credited to your PSBank savings or checking account.
As of the time of writing, PSBank offers the highest interest in this kind of savings (4.5% as of October 23, 2023). Please note that this is subject to change so be sure to get in touch with PSBank to confirm the interest rate before you open an account.
Security Bank Peso Time Deposit
Security Bank also has a time deposit option that may be able to cater to a whole lot of customers. The placement terms are as follows – 30, 60, 90, 180, 360 days, 2-5 years, and 7 years.
For TD Placements 1 year onwards, there is an interest payout option (Monthly, Quarterly, Semi-Annually, Annually, or Upon Maturity).
Aside from the above-mentioned banks, there are other banks that offer a 5-year placement, however, their interest rates are not mentioned/not available or not updated on their websites. If you want to know more about those other banks, please see their respective links below:
- Chinabank Money Lift Plus Peso Time Deposit
- PBCom Sure Earner Time Deposit
- Philippine Veterans Bank
- Robinsons Bank
Note: Updated October 24, 2023High Yield Peso Time Deposit Accounts in the Philippines: 5 Year Term Click To Tweet
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.