1. Retail Treasury Bonds
There was a time
when bonds were too pricey for ordinary Filipino investors. That all changed when both the government and
the corporate world offered retail
bonds. It is now becoming popular as an
investment option given that it offers higher interest rates than regular time
deposits. For RTBs (retail treasury bonds) offered by
the national government, investors can invest with a minimum placement of P5,000 and in multiples of P5,000 thereafter. On the other hand,
retail corporate bonds vary in amount, depending on the issuer.
Here are some
reasons why ordinary Filipino investors should consider RTBs:
1.
Higher rates
compared to savings, checking, and even time deposit accounts.
2.
Risk free for
government issued bonds as it is guaranteed by the Philippine Government.
3.
Interests earned are
automatically credited every quarter to your nominated account.
4.
Principal is credited
at maturity.
5.
Highly liquid as
there will be ready buyer should you decide to liquidate your RTB before
maturity.
6.
Accepted as
collateral for back to back loans by some bank..
7.
Various terms to choose from; 3, 5
and 7 years.
Computation of interest is a simple PRT
(Principal x Rate x Term), subject, of course, to 20% withholding tax.
Leading banks like BPI, BDO, Metrobank,
and Eastwest offer this type of investment. So go to your nearest bank now and ask for
their RTBs.