Disappointed with the low-interest rates you get from your regular savings account? You can still grow your hard-earned money from time deposits, whether it’s for a short or long-term holding period.
The longer you hold off your money, the higher the interest rate you get, depending on the type of time deposit account.
|Minimum Initial Placement||Terms of Placement||Interest Earn Per Annum|
|P5,000||30 days to 1 year||0.500% to 2.500%|
|P100,000||2-4 years||2.625% – 3.250%|
|P100,000||5 years and 1 day||3.250% – 3.750%|
Note: Rates and placements as of 27 February 2020
RCBC offers three types of peso time deposit accounts, each one offering different terms of placement and interest rates earned per annum.
RCBC’s time deposits accounts are pretty straightforward. You can choose placements of 30 days or 1 year, and up to 5 years plus 1 day for long-term investment.
For your transaction record, you will receive a time deposit placement confirmation. You can also access your funds by doing an over the counter transaction.
Keep in mind that the total amount is subject to pre-termination fees on top of withholding tax if you withdraw your funds before the maturity date.
The 5-year time deposit is exempted from withholding tax, though. Visit your nearest RCBC Bank for the fees and charges, including fees for document stamp tax.
What are the key features of RCBC Peso Time Deposit of 30 days to 1-year tenure?
If you’re new to the time deposit game, you can always start small and eventually go big time.
The minimum initial placement for a short-term holding period of 30 days to 1 year is P5,000.
Interest rates range from 0.500% up to 2.500%. With the Maybank Classic Time Deposit, a placement amount of P50,000 to P499,999 from 91 to 359 days will earn you 1.250% per annum.
Meanwhile, RCBC’s promotional rates offer 1.875% per annum for less than a year for P40,000 to P499,999 placements, which is still higher than Maybank.
You can visit your nearest RCBC branch for the most updated rates and latest information.
What are the key features of RCBC Peso Time Deposit of 2 to 4 years tenure?
If you have more than enough savings and want to earn even higher rates, you can opt for the 2 to 4 years tenure. However, the minimum placement is P100,000.
|2 years||3 years||4 years|
|P100,000 – P999,999||2.625%||2.875%||3.000%|
|P1million – P9,999,999||2.750%||3.000%||3.125%|
|P10,000,000 and above||2.750%||3.000%||3.250%|
If you’re comfortable to hold off your money for 2 to 4 years, you’d be better off with these interest rates than putting it in a regular peso savings account.
The interest rates range from 2.625% to 3.250%. If we compare this to the rates of Eastwest Bank and RCBC’s 4-year tenure, you earn 3.125% per annum with Eastwest Bank, which is higher than RCBC’s 3.000%.
Just keep in mind there are fees and taxes to settle, which you can know more about at your nearest RCBC branch.
What are the key features of RCBC Peso Time Deposit of 5-year + 1-day tenure?
RCBC Peso Time Deposit of 5-year + 1 day tenure offers enticing interest rates, which are as competitive as Maybank and Eastwest Bank’s rates.
The minimum placement is P100,000, and interest rates per annum range from 3.250% to 3.750%.
|Amount||5 years + 1 day|
|P100,000 – P499,999||3.250%|
|P500,000 – P999,999||3.375%|
|P1,000,000 – P4,999,999||3.500%|
|P5,000,000 – P9,999,999||3.625%|
|P10 million above||3.750%|
RCBC vs Maybank and other time deposit promo rates in the Philippines
RCBC Time Deposit rates are quite competitive in the market, but let’s see what Maybank, Eastwest Bank, and other banks have to offer.
For long-term investments, let’s compare their rates to RCBC’s 5-year + 1 day with a placement of P100,000.
***Interest rates as of date***
|China Bank||Based on three months (3M) Bloomberg Valuation Service (BVAL) of the last business day of the preceding month minus applicable spread|
|Eastwest Bank||3.125% net|
|BPI Family Savings||3.250%|
|Bank of Philippine Islands||Rates can be requested at any BPI branch|
For the 5-year time deposits, PSBank offers the highest interest rate at 3.750% with a minimum placement of P50,000.
Maybank also provides a higher interest rate than RCBC with the same tenure.
RCBC Time Deposit vs RCBC Regular Peso Savings Account
There’s no doubt about it — a time deposit account is a better option compared to a regular peso savings account. But you need to hold your funds for a certain period.
Before you explore time deposits, make sure you have enough in your emergency fund. You’ll be holding your money for a few months, or even for as long as 5 years.
If you withdraw your money prior to the maturity date, you’re going to pay for the pre-termination fees and other charges.
RCBC Regular Peso Savings accounts offer different interest rates, ranging from 0.15% to 0.5625%. You may have some second thoughts about putting your funds in this type of savings account.
But even if you find RCBC’s interest rates unsatisfactory, there are other banks offering rates and terms that will surely suit your financial goals.
Let us know what you think of RCBC’s time deposit products in the comments below.