Home Properties Things to Consider When Investing Your Money in Time Deposits

Things to Consider When Investing Your Money in Time Deposits


Many Filipinos invest in time deposits to save their hard-earned money. It is a safe option to keep your money for long-term and it also provides good return on investment.

Opening a time deposit account is very easy provided that you have sufficient money required for the initial deposit.


This can be one of the best ways to grow your money through the interest accumulated within the duration of the fixed term. According to a bank executive, the interest rates that a depositor can earn depends on the term and the amount deposited. However, it cannot be withdrawn during the term.

Features of time deposits

Investing in time deposit allows a depositor to enjoy features such as freedom to invest. It is also appealing to investors due to its easy-to-understand terms and conditions.

Types of time deposits

Many banks in the Philippines offer different types of time deposit accounts such as currency based options, based on terms of placement and tax saving time deposits.

Things to consider in opening time deposit account

  • Terms

The minimum terms of time deposit are available in different variations from 30 days to 360 days. But, you can also opt for longer-term maximum of six years. When the term ends or matures, the depositor can withdraw the fund or roll over to another term.

  • Currencies

Aside from Philippine currency, you can also invest foreign currencies under time deposit. Bigger banks accept time deposits in USD, CAD, AUD, EUR, GBP, CHF, JPY and other major currencies.

  • Rates

Depositing larger amount of money can earn higher interest rates. The interest rates are added to the principal amount deposited once the term ended. The computation of the interest starts from the day you opened the time deposit account until the term ends.

The main advantage of investing in time deposits is that the interest rate is guaranteed and fixed. It is also insured for up to P500,000 with the PDIC. Likewise, you can also borrow up to 90% from your time deposit.

When is the right time to invest in time deposits?

The right time to invest your money in time deposits depends on your financial goal. If you want a less risky and safe investment, you should opt for a long-term time deposit that extends up to 5 years or more. In this option, the interest rate is compounded on monthly basis and tax free.