The best way to multiply your earnings is to invest your savings. If you’ve just begun to invest, then putting your funds in a time deposit is the best way to begin with. Before investing in a time deposit, enhance your elementary knowledge about it:
- Basic documentation
A time deposit requires only a form to be filled by the investor, unlike other investment instruments which demand piles of documents and paperwork.
- Rate of Interest
Time deposits yield a higher rate of interest than the savings and checking accounts.
The minimum duration is 30 days along with 60, 90, 180 and 360 days as an option depending on the financial institution or the bank. Nowadays, many banks offer long-term time deposits, varying between two to six years.
- Easy-to-understand Terms & Conditions
Terms and conditions for time deposits are no rocket science! A beginner with minimal knowledge about the banking sector can easily comprehend the terms and conditions.
- Minimum investment
A time deposit account can be opened with an amount as little as 1,000 Pesos.
- TDs in other currency
Many banks and financial institutions in the Philippines offer time deposits in other currencies too.
- Certificate of time deposit
Unlike savings or checking accounts, you don’t require your passbook for a time deposit. Instead, a certificate of a time deposit is handed over to you on the maturity of TD.
- Tax exemption
Some long-term time deposits give the customers the benefits of tax exemption at the time of declaration.
- Processing fee charges
No additional fee is charged for opening a time deposit account within the limits.
- Premature withdrawals
Premature withdrawals are possible by paying some monetary penalty.
Hurry up and open your time deposit account today!