Abby Ongyanco-Lim

Lately with my Php5000.00 I’m shopping for the best time deposit rates that I could get. So far, I found BPI. For my PHP5000.00, they have 3.5% for 91days.

Please take note, that they are not offered to regular BPI savings account holders. You need to be a BPI direct savings account holder.

To open an account for BPI direct savings, you have to apply online at bpi website

Then, you have to wait for several banking days. They will email you if your BPI Direct Savings kit is ready for pick up at your designated BPI branch.

After you get your BPI Direct Savings ATM kit, you have to email BPI about activating your expressonline account. Finally, via your online portfolio, you can apply to open a BPI Direct Time Deposit Account and instruct BPI to transfer funds from your savings to this Time Deposit Account. You may chose to instruct BPI to (1) Payout principal and the interest (2) payout interest and roll over the principal or (3) rollover the principal and interest

Next how to compute for the time deposit interest rates. Here’s my approx…

First, since it’s 91days that’s quarterly. And the 3.5% is the interest rates per annum less the 20% witholding tax. So, to get the net interest rate. I multiply 3.5% and 80%. That’s 2.8% net interest rate. I need to divide this to 4 to get the quarterly interest rate. That’s 2.5% / 4 = 0.7%. So, the interest earned from my time deposit of Php5000 is approximately Php35.

Actually, there are some banks overing tax-free time deposits and higher interest rates. But, with big minimum amount placed.