Thursday, April 8, 2010


, Ge( 5.0% government guaranteed and tax-free)

If you’re looking for an investment that make you sleep soundly and no time to study and monitor, then this is it! Invest with our government.

The Bonds have a term of 5 years and 1 day. You can invest with a minimum of Php10,000 only with  other denominations are Php100,000, Php500,000, Php1,000,000 and Php10,000,000.

It pays fixed interest rate of 5.0% per year and the interest payments are exempt from the 20% withholding tax. Your earnings are automatically credited every 6 months to the savings account of the bondholder with the Development Bank of the Philippines (DBP) or Land Bank of the Philippines (LBP).

Sample computation:
•    Investment Amount: Php10,000
•    Coupon rate: 5% fixed per annum
•    Gross Semiannual Interest: Php250.00 (Php10,000 x 5.00% x 1/2)
•    Tax: None
•    Net Interest to be Received: Php250.00 every 6 months

Or for Php100,000 you can gain interest of Php5,000 per year. 5.0% is not so impressive profit but the safety of your fund and less hassles is guaranteed by our government. Other than that, for every Php10,000 Bond held, an eligible bondholder is entitled to one raffle number. Every year, a minimum of two (2) units of House and Lot packages or Lots worth Php1 Million each will be raffled off.

To invest, you must have:
•    Accomplished Application to Purchase Pag-IBIG Housing Bond
•    TIN and 2 valid IDs ( bearing photo and signature)
•    Savings account with either DBP or LBP
•    Manager’s check

Visit the Treasury Department of Pag-IBIG to make your investment.
•    Pag-IBIG Fund Corporate Headquarters
•    Treasury Department
•    4/F Atrium Building, Makati Avenue, Makati City
•    Tel.: (632) 811-4340 / 811-4260 / 811-4380

The proof of ownership is the Bond certificate issued by the DBP Trust Services to you. As of now, I have no investment yet on Bonds. But sooner I really will, I’m not after for the 5.0% interest exactly but to the semi-annual raffles of “house and lot” worth Php1M. And even I won’t lucky won this raffle, still no big deal since our fund got earnings every year and not to mention the assistance we contribute to our government to construct low cost housing for our fellow Filipinos.

In fact, I'm living in a townhouse under Pag-IBIG loan.


  1. its nice thing to invest..... even if its sleeps... it grows... BUT you should see to it... that WHERE you put your money is safe there.. and has good rates... AND always check time to time to make sure everything is going smoothly and perfect.... so you dont have to worry.. and when the time comes.. everything would work out just GREAT!!!!!!!!!!.............

  2. Thanks for sharing your insights.

    When making an investment of any kind, one key factor that needs to be looked at is risk versus reward. More importantly, how much risk can you handle? A person's risk tolerance is closely linked with their willingness to invest.

    Good bless and more power to all investors.

  3. Its good to invest. Let your money work for you. But take note choice the right one to invest your money otherwise you end up nothing. Be wise.