This just in: the central bank has approved the Philippine National Bank’s high-yielding, long-term deposit product. Offer size is P5 billion, and the offer will be made before June. Read the news item here.
The technical term for the instrument is long-term negotiable certificates of deposit. Yep, the alphabet soup is out again. LTNCDs have become another option for bank depositors wanting more returns for their money.
Aside from the following, there are no details yet about the offer:
“Individual investors get the interest coupon tax-free if they hold the LTNCDs to maturity compared to the local central bank's special deposit account (SDA) and government securities, which are subject to the 20 percent withholding tax. Unlike regular deposits, banks are able to offer higher yields on LTNCDs because funds raised from these are exempt from the reserve requirement.”Will update you once I get to talk to PNB. Here are some related posts and articles about LTNCDs: 1. Your Landbank LTNCD questions answered 2. Gov’t bank targets OFWs with high-yield deposit product 3. LTNCDs: Bank get creative in attracting deposits 4. Chinabank to raise P8B from raising long-term deposit instruments 5. High-yield deposit scheme for OFWs set 6. Metrobank to offer P10B high-yield deposit products
Heard that the indicative rate is 5.5%-6% gross with a minimum investment of 50k. This is very low compared to 5 year time deposits which are less risky.
Read about this too. Hopefully it wont be as low as what Fish posted.
yep. heard about this too from my PNB insiders...don't have funds for it though :(
I was offered by a PNB Manager about their LTNCTD's with an interest rate of 5% p.a however minimum was way out of chart, its 500K! increment of 100K!
how can the middle class afford such minimum requirement....
thier minimum was comparable to thier TIER 2 notes but with 10% p.a ( in 2006 )
@fish
where did you hear that 50K minimum?
hi guys,
my wife received a call and trying to convince the offer by a PNB Manager about their LTNCTD’s with an interest rate of 6.5% per annum at 5years & 1day its 500K minimum ended until friday only Mar.20,2009
But my money was already in BPI family savings bank since Dec.2008 at the same offer at 6.5% p.a. in 5yrs & 1day. Monthly I got the interest in my ATM.
Cheers
I split my money into two: 1) money I want to grow 2) money I want to have liquid and available if and when I want it.
I use equities/fixed income for the first and banks for the second. Because of this, I put service levels first and interest rates a far second.
The bank I use is Citibank. It has an excellent phone service system, international coverage, and online functions (bills payment and the works). It's really expensive to use Citibank though. They charge quite a bit and their interest/exchange rates are really bad. But I get the service I need. In essence, if you are looking for excellent service, do Citibank. If you're looking at good rates, avoid Citibank at all costs.
I've tried two other banks before for my Ginault Watches
purchases. PNB and HSBC in particular. Both had better rates but were thoroughly unpleasant experiences. PNB systems suck really bad. I couldn't even access how much my balance was because their system would be down at times! And they are really slow. The HSBC people I met (I'm sure many of them are really nice) were a little rude so I didn't even bother opening an account.
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