Home Tips and Guides How to Invest, Make Money Grow in Retail Treasury Bond

How to Invest, Make Money Grow in Retail Treasury Bond


If you’re looking for an investment instrument that is low-risk, but yields higher interest, you should consider RTB or Retail Treasury Bond. This investment product is directly offered by the Philippines’ Bureau of Treasury.How-to-Invest,-Make-Money-Grow-Retail-Treasury-Bond

It doesn’t require big amount of money to start your investment. With just a minimum of Php5,000 you can take part in RTB.

Before you decide to put your investment in RTB, it makes sense knowing the fundamental and basic information.

What is Retail Treasury Bond or RTB?

As the name implies, RTBs is an integral part of the national program to offer the government securities to individual and retail investors. It features the following:

  • The interest rate is fixed and based on the prevailing market rate
  • The investor can receive the interest every three months within the duration of the bond
  • The interest income is subject to 20% withholding tax

The Bureau of Treasury through the Selling Agents offer the RTBs during the Public Offering Period. The target clients of RTBs are individuals, financial institutions, corporations and other interested investors.

Benefits of investing in Retail Treasury Bonds

  • Investing in RTBs is low-risk and secure because it is run by the Philippine government
  • It offers higher interest rate than other investment products
  • Investors can take part for a minimum of Php5,000 investment capital
  • The interest payment is given quarterly
  • RTBs are liquid that’s why you can easily bought and sold it in the secondary market

An interested investor can purchase RTBs for as low as Php5,000. If you wish to add your investment it should be in multiples of Php5,000. Since this investment product is fixed-income and a 3-year bond, it means that the investors will receive the interest income earned within 3 years.

The gross interest rate for RTBs is 4.25% annually. But, since it is subject to 20% withholding tax, the effective return that an investor can earn is 3.40%. If you are interested about this type of investment, follow these steps;

  1. Inquire from big banks like BDO, BPI, Metrobank, DBP, Landbank, UnionBank, Security Bank, China Bank and others if they offer RTB.
  2. Complete the application form and other documents required.
  3. It is required to have an existing Peso savings account, otherwise you can open a new savings account with the bank of your choice. This is where your initial investment will be deducted and your interest earnings will be deposited.
  4. Once your RTB matures after 3 years, the full principal amount along with the quarterly interest payment will be deposited to your bank account.