BANKS: TIME DEPOSIT (TD)

A very common investment vehicle for an ordinary Filipino like me/us, to place safely your hard earned money, same as savings account or Certificate of Deposit (CD) held for a fixed-term with the understanding that the depositor can only withdraw by giving written notice.

Quite safer since the Philippine Deposit Insurance Corporation (PDIC) insures deposits up to P500,000. Consider investing in a time deposit for higher interest. The secret to earning in a time deposit is to hold it for a long term at an interest rate higher than the inflation rate. You can also have investment in foreign currency to take advantage of higher rates depending on the market. But to the other side, the interest gained here is minimal compared to other investment vehicles.

Time deposits offer a slightly higher yield than T-Bills because of the slightly higher default risk for a bank but, overall, the likelihood that a large bank will go broke is pretty slim. Of course, the amount of interest you earn depends on a number of other factors such as the current interest rate environment, how much money you invest, the length of time and the particular bank you choose. While nearly every bank offers TDs, the rates are rarely competitive, so it's important to shop around.

The main advantage of TDs is their relative safety and the ability to know your return ahead of time. You'll generally earn more than in a savings account, and you won't be at the mercy of the stock market. But despite the benefits, there are two main disadvantages to TDs. First of all, the returns are paltry compared to many other investments. Furthermore, your money is tied up for the length of the TD and you won't be able to get it out without paying a harsh penalty.

Below are my favorite Banks that offered Personal-Regular Peso Time Deposit rate;

* BPI Bank-

* Planters Development Bank

* Allied Bank

* PS Bank

Other banks didn’t post there rates online and preferred to be call on telephone in any branch near you.