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Best Time Deposits and Rates in the Philippines 2022

Best Time Deposit Rates in the Philippines
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Looking for a higher interest rate than what your bank is offering? Which banks have the best time deposit rates in the Philippines?

Nowadays, time deposits are very popular. 

It is a safe, low-risk form of passive income in which you can invest and earn higher returns on your money than a traditional savings account.

In this article, we will discuss time deposits, as well as which banks offer the best time deposit rates in the Philippines.

Let’s start.

What is Time Deposit?

A time deposit, also known as a term deposit, is a type of bank account in which savings are locked in for a specified period of time.

It pays a higher interest rate than a regular savings account because you trade limited access to your funds for higher returns. Your money is safe because the Philippine Deposit Insurance Corporation (PDIC) insures up to half a million pesos of all your deposits in a bankrupt bank.

Features of a Time Deposit

A time deposit is similar to a regular bank account in terms of deposit and interest. It has the following features:

  • The initial deposit, also known as the minimum placement, is the amount required to open an account. This can range from ₱10,000 to more than a million pesos.
  • Tenor, also known as term or maturity, is the amount of time the funds are held by the bank. You can choose between a 30-day tenor and a 10-year tenor.
  • You can get interest on the money that you put in a bank account. It tells you how much money you would have if you didn’t spend your money over a long time. Most of the time, it is expressed as a percentage for the whole year and credited to the account every three months.
  • Certificate of deposit is the evidence or proof that you have an active account.

Advantages of a Time Deposit

Time deposits, as a passive income, allow you to gradually build your wealth. The following are the advantages of starting a time deposit.

  • Has a better interest rate than a regular bank account. The interest rates usually change based on the daily market rate from the Bangko Sentral ng Pilipinas.
  • flexible maturity you can choose from with 30, 60, 90, 180 days, 1 year or longer.
  • the higher the balance, the higher your potential returns can be.
  • automatic rollover so your deposit renews without any action from you.
  • relatively less risky due to PDIC coverage
  • prevents impulsive spending as your money is locked away in the bank
  • encourages long-term saving
  • some time deposit products waive tax on multi-year tenors

This account is ideal for people who don’t want to take on too much risk when it comes to investing, are willing to save for the long term, and want to earn higher returns than traditional bank accounts.

Furthermore, it is ideal if you are saving for large purchases or expenses in the future, such as real estate, a house and lot, a car, travel, leisure, a pension plan, or savings accounts for your children.

But perhaps the most significant advantage of time deposits is their flexibility in terms of initial capital. You can actually begin with as little as ₱1,000. The more capital you put up, the better the interest rate the bank will give you, allowing you to enjoy higher returns over time.

Disadvantages of Time Deposits

When you pre-terminate the fund, you will be charged fees. And this is its disadvantage, as you give up the flexibility of obtaining your money back in exchange for a higher yield.

Furthermore, the interest you earn may be lower when compared to earning passive income from Pag-IBIG MP2 and other options for earning passive income such as UITF, mutual fund, PERA, or exchange-traded fund such as First Metro Philippine Equity Exchange Traded Fund.

The opportunity cost of not earning more, as in an index fund, albeit with higher volatility risks, maybe something that others find disadvantageous, particularly when done over a long period of time.

This balancing of potential income and risks is a decision that you, as an investor, must make on your own.

What are the different time deposit rates in the Philippines?

You may discover in subsequent sections that the rates of time deposit accounts affect how much you can receive at the end of the day. The higher they are, the better.

There are two types of rates available in the market.

  • Fixed rate
  • Floating rate

Fixed Time Deposit Rate

A fixed-rate time deposit rate means that the interest rate is set when the account is opened and the term is determined, and it will remain that way for the duration of the term.

That is, it will remain the same until the account matures. This shields the investor from a changing financial environment in which interest rates may fall to historically low levels.

However, it also means that investors may be unable to profit when interest rates rise.

It may be appropriate for those who do not want to be exposed to volatility in general. They like to have a pre-determined amount of return. This is ideal for those who already have a financial goal in mind and know how much they want to spend.

Floating Time Deposit Rate

A floating rate, on the other hand, means that the amount of interest you receive is subject to change. Repricing is the term used to describe such a change.

Repricing may occur based on what was agreed upon when the account was opened. It can happen on a monthly, quarterly, or yearly basis.

Obviously, the one advantage is that it allows investors to profit when interest rates are high. Similarly, the disadvantage is that it does not protect investors when interest rates fall below what was pre-determined when the account was opened.

It can be beneficial for people who don’t mind taking some risks in exchange for higher interest rates when interest rates rise.

Best Time Deposit Rates in the Philippines 2022

The following are the most recent annual interest rates for the top Philippine time deposit products. They are ordered from highest to lowest. If you want to learn more about the banks, there is a link to their websites.

This is current as of December 22, 2020. All rates displayed on this page are subject to change without notice. Contact your bank to obtain the most recent rate.

Bank ProductsInterestBalance to Earn InterestTerm
Tonik Time Deposit6%5,0006 months
City Savings Bank Fixed Rate Time Deposit3.5%10 million5 years + 1 day
Sterling Bank of Asia Maxima 5 Long Term Deposits2.375%5 million5 years
Security Bank Peso Time Deposit2.27%5 million4 years
PBCOM Sure Earner2.25%50,0005 years + 1 day
RCBC PHP Time Deposit2.125%100,0005 years + 1 day
CTBC Bank Peso Time Deposit2.125%10 million3 years
Robinsons Bank Peso Time Deposit2.00%5 million5 years + 1 day
PSBank 5-Year Time Deposit2.00%50,0005 years
East West Bank Peso Time Deposit1.8613%100,0005 years
BPI Direct Savings Bank Plan Ahead1.75%1 million5 years
Maybank Flexi Rate1.75%5 million91 days
Maybank ADDvantage Time Advance Time Deposit1.75%50,0001 year
China Bank Regular Time Deposit1.45%5 million360 days
Metrobank Online Time Deposit1.25%5 million6 months

How Much Can You Earn from Time Deposits in the Philippines

Banks provide varying rates of return based on maturity and amount. This means that the higher your deposits and the longer your maturity, the higher the interest rate they will pay on your account.

However, there is one thing you should know about time deposit products in the Philippines. Rates are subject to change without notice at any time, and they do so frequently. As a result, estimating how much you’ll earn when investing is difficult.

Consequently, we are going to use ₱10 million as the initial capital in this estimate. As you can see from the table above, this is the maximum investment that will yield the highest return. However, you can ask each company, visit their website, or go to the bank for their most recent starting capital.

The table below shows how much you can earn from time deposits in the Philippines after one year, five years, or ten years at interest rates ranging from 0.5 percent to 6%. The figures you see already include the withholding tax of 20%.

Interest Rate1 year5 years10 years
6.0%480,0002,641,7275,981,327
5.5%440,0002,402,3075,381,723
5.0%400,0002,166,5294,802,443
4.5%360,0001,934,3504,242,871
4.0%320,0001,705,7303,702,410
3.5%280,0001,480,6263,180,478
3.0%240,0001,258,9992,676,506
2.5%200,0001,040,8082,189,944
2.0%160,000826,0131,720,256
1.5%120,000614,5741,266,918
1.0%80,000406,451829,423
0.5%40,000201,606407,277

The table shows that if you start now, your money will grow over time. The higher the interest rate and the longer you wait for it to grow, the more you will receive when you decide to withdraw your money.

According to this calculation, a ten-million peso deposit earns ₱5.98 million over a ten-year period at a 6% interest rate. On the other hand, the same amount earns ₱407,277 with a 0.5 percent interest rate over the same time period.

You will see estimates for each product in all subsequent discussions. Please keep in mind that they do not guarantee actual returns.

Also, because of differences in how frequently interest is credited and compounded, there may be some difference in earnings in reality. The cost of a documentary stamp is also not included in the estimates.

Tonik Time Deposit

Interest: 6.00%
Minimum initial deposit: 5,000
Term: 6 months, 9 months, 12 months, 18 months, 24 months

Tonik, the Philippines’ newest digital-only bank, offers a very competitive 6 percent annual interest rate on a six-month term time deposit account. This product’s high-interest rate, low initial capital outlay, and short term are all very appealing.

Furthermore, you can withdraw funds before maturity and still earn 1% annual interest. The Singapore-based firm also provides varying interest rates based on maturity.

MonthsTime Deposit Interest Rate
66.00%
94.50%
124.75%
185.00%
245.25%

City Savings Bank Fixed Rate Time Deposit

Interest: 3.50% for a placement of 10 million pesos
Minimum initial deposit: 50,000
Term: 30 days, 60 days, 90 days, 180 days, 1 year, 1 & 1/2 years, or
18 months, 2 years, 3 years, 4 years, 5 years, and 1 day

The Fixed Rate Time Deposit from City Savings Bank is a high-yielding deposit product. Starting capital can be as low as 50,000, and the term can range from 30 days to more than 5 years.

One advantage of investing for the long term is that taxes are waived (except for corporate accounts) if you choose the longest term available, which is 5 years + 1 day.

Another advantage is that the interest rate is fixed. As a result, once the deposit and maturity date are determined, the interest rate remains constant. This shields you from a volatile market in which interest may fluctuate.

See the table below for five-year growth on a ten-million-peso deposit.

YearDepositBalance
110,000,00010,280,000
210,567,840
310,863,740
411,167,924
511,480,626

Sterling Bank of Asia Maxima 5 Long Term Deposits

Interest: 2.375% for placement of 5 million in 5 years
Minimum initial deposit: 
₱100,000
Tenor: 
1 month, 2 months, 3-4 months, 5-6 months, 7-9 months, 10-12 months, 1 year, 3 years, 5 years

Sterling Bank of Asia offers the Maxima 5 Long Term Deposit. It is appropriate if you want to save for the long term at a higher rate than savings accounts currently offer.

They have other comparable products, with the shortest term starting at one month for as little as ₱1,000. (Prima Time Deposit). Prima Plus Time Deposit, Solo Plus Special Savings Account, and Maxima 3 Long Term Deposits are some other peso-denominated products.

Here’s how your money would grow over the next five years.

YearDepositBalance
15,000,0005,095,000
25,191,805
35,290,449
45,390,968
55,493,396

Security Bank Peso Time Deposit

Security Bank’s Peso Time Deposit is an account for those looking for one of the best rates on the market. It’s also for people who want to save for the long term but don’t want to take on too much risk when investing.

Interest: 2.27% for a minimum placement of ₱5 million
Minimum initial deposit: 
₱100,000
Terms: 1 Month, 2 Months, 3 Months, 6 Months, 12 Months, 2 Years, 3 Years, 4 Years

Here’s how much a 5 million peso deposit would grow in four years.

YearDepositBalance
15,000,0005,090,800
25,183,248
3 5,277,376
45,373,213
55,470,791

PBCOM Sure Earner

Interest: 2.25%
Minimum initial deposit: 50,000
Term: 5 years and 1 day

The PBCOM Sure Earner is a time deposit account with a low initial deposit of  ₱50,000 that can already earn an above-average interest rate of 2.25 percent that is guaranteed for at least 5 years and 1 day. The proof is provided in the form of a deposit certificate.

One advantage is that any interest earned is credited to a bank account designated as the settlement account once a month. Furthermore, depositors can enjoy a fixed income that is tax-free for the duration of the deposit.

See how your money grows over the course of five years in the table below.

YearDepositBalance
110,000,00010,180,000
210,363,240
310,549,778
410,739,674
510,932,989

Rizal Commercial Banking Corporation PHP Time Deposit

Interest: 2.125% for placement of ₱1,000,000 & up
Minimum initial deposit: 
₱5,000
Tenor: 
30 days to 1 year, 2 years to 4 years, 5 years + 1 day

RCBC PHP Time Deposit enables depositors to begin earning 1.875 percent for as little as ₱100,000 over a five-year period. A million peso deposit yields an annual rate of 2.125 percent, allowing you to maximize your returns.

Other time deposit products are available at the bank. The shortest term available is 30 days, with a ₱5,000 minimum starting capital.

Below is a sample illustration of how your money grows over a five-year period.

YearDepositBalance
11,000,0001,017,000
21,034,289
31,051,872
41,069,754
51,087,940

CTBC Peso Time Deposit

CTBC Peso Time Deposit offers one of the market’s highest interest rates. The bank, like some of its competitors, offers tiered rates based on the maturity period and the amount of capital invested in the account.

For example, the smallest initial capital is ₱1,000, which can already earn 0.550 percent after 1-2 months. The higher the capital and the longer the money is kept in deposit, the higher the interest rate.

You can open an account by submitting two valid ID cards, a signature specimen, and other documents.

Interest: 2.125% for placement of ₱10 million
Minimum initial deposit: 1,000
Term: 1-2 Months, 3 Months, 6 Months, 1 Year, 2 years, 3 years

See below the projection for a deposit of ₱10 million in 3 years.

YearDepositBalance
110,000,00010,170,000
210,342,890
310,518,719

Robinsons Bank Peso Time Deposit

Interest: 2.00% for placement of ₱5 million
Minimum initial deposit: 
₱1,000
Tenor: 
35 days to 5 years and 1 day

Robinsons Bank Peso Time Deposit provides a competitive rate if you can save the minimum capital for a fixed period of time. When an account is approved, a certificate of deposit is issued.

You can select one of four terms: 35, 65, 95, or 182 days. They can also choose between 1, 3, and 5 years.

Not only that, but you can begin investing with as little as ₱1,000. When the account reaches maturity, it is credited. Here is an estimate of potential future returns for a 5-year deposit of 5 million pesos.

YearDepositBalance
15,000,0005,080,000
25,161,280
35,243,860
45,327,762
55,413,006

PSBank Prime Time Deposit

PSBank Prime Time Deposit offers depositors an above-average yield of 2% on a capital of ₱50,000. The returns are guaranteed to be credited when the investment matures, and any earned interest is tax-free at the end of the 5-year term.

Another benefit is that the account holder is given a credit facility. You can borrow up to 90 percent of the deposit’s value. You can also check and manage their accounts virtually using their online account system.

Interest: 2.00%
Minimum initial deposit: 50,000
Term: 5 years

YearDepositBalance
150,00051,000
252,020
353,060
454,122
555,204

EastWest Bank Peso Time Deposit

EastWest Bank’s Peso Long Term Time Deposit offers 1.375 percent if a minimum of ₱10,000 is held until maturity in 5 years. But that isn’t all. The bank offers tiered interest rates, as well as short terms of 30 and 60 days.

Depositors in long-term deposits can receive interest either at the end of the term or through a three-month pay-out. Another advantage is that when the term is set to mature in 5 years and 1 day, taxes are waived.

Interest: 1.8613% for placement of P100,000 for 5 years + 1 day
Minimum initial deposit: 
₱10,000
Tenor: 
30, 60, 90, 180, 360 days, up to 5 years

The bank issues a certificate as evidence of the time deposit. Moreover, you can fill out a form online to enroll. After you receive an email confirmation, you may present additional documents for account opening at the branch nearest you.

YearDepositBalance
1100,000101,489
2103,000
3104,534
4106,091
5107,670

BPI Family Savings Bank Plan Ahead

BPI Family Savings Bank Plan Ahead is a five-year fixed-interest time deposit. Rates are higher for the capital of one million pesos and above. And because it is fixed, you won’t have to worry about your money fluctuating with interest rates.

Furthermore, investors have the option of receiving interest in two ways: monthly or lump sum. The interest will be credited to a debit-card bank account for monthly distribution. However, when the account matures at the end of the term, a lump sum payment is made.

Another benefit is that earnings are tax-free.

Interest: 1.75% for placement of ₱1 million
Minimum initial deposit: 
P50,000
Tenor: 
5 years

YearDepositBalance
11,000,0001,014,000
21,028,196
31,042,590
41,057,187
51,071,988

Maybank Flexi Rate

The Maybank Flexi Rate provides clients with interest rates that are higher than those available in a savings account. The interest you earn can be deposited into a savings account or withdrawn at the end of the term.

Interest: 1.75% for a minimum placement of P5 million
Minimum initial deposit: 
₱25,000
Terms: 30, 60, 90, 180, 359 days

This product caters to different levels of interest. You can begin investing for as little as ₱25,000 in as little as 31 days and earn interest rates that are higher than most savings accounts.

The highest interest rate, as shown in the first table of this article, is for a deposit of 5 million that matures in at least 91 days.

And below is an estimate of earnings for five years.

YearDepositBalance
15,000,0005,070,000
25,140,980
35,212,954
45,285,935
55,359,938

Maybank ADDvantage Advance Time Deposit

Another Maybank product, the ADDvantage Advance Time Deposit, allows depositors to save a minimum of ₱50,000 (US $3,000.) The interest can be credited to a bank deposit account or a checking account. The maturity period is set at one year.

The documentary stamp tax is waived when the deposit is brought to term. It would be charged otherwise.

Interest: 1.75%
Minimum initial deposit: 
₱50,000
Terms: 30, 60, 90, 180, 359 days

Here is how your money is forecasted to grow over time.

YearDepositBalance
150,00050,700
251,410
352,130
452,859
553599

China Bank Regular Time Deposit

Interest: 1.45% for placement of ₱5 million
Minimum initial deposit: 
₱5,000
Tenor: 
90, 180, 360 days

The China Bank Regular Time Deposit Account can be managed through any of the bank’s branches or online. Investors can choose between automatic renewal and interest crediting at maturity. It also has a tiered interest rate structure, with the bigger the capital and the longer the term, the higher the interest rate.

And, of course, here’s a five-year forecast of the money. The deposit is assumed to be immediately carried over to the following year.

YearDepositBalance
15,000,0005,058,000
2 5,116,673
35,176,026
45,236,068
55,296,806

Metrobank Online Time Deposit

Metrobank Online Time Deposit is an account that can be opened online without visiting a branch. This product is only available to existing customers.

You can choose to receive both the principal and interest at the end of the term or to automatically roll over the principal, interest, or both.

Interest: 1.25% for a minimum placement of P5 million
Minimum initial deposit: 
10,000
Terms: 1 month, 2 to 5 months, 6 months to 1 year

To open an account, go to their website and register online. You must already have an eligible deposit account where the funds will be deposited, and where the principal and interest will be credited at the end of the term.

The estimated growth of a 5 million deposit for 5 years is shown below.

YearDepositBalance
15,000,0005,050,000
25,100,500
35,151,505
45,203,020
55,255,050

How to Choose the Best Time Deposit in the Philippines

Now that you know the time deposit interest rates, you need to know what makes a good time deposit. While the final decision is yours, here are a few things to consider.

  • Select a reputable bank. Deal only with banks that have a solid track record in the industry. Keep in mind that banks with a long history may offer lower rates than banks that are just getting started, which may offer more appealing returns to attract more customers.
  • Maximize your earnings. You must select a time deposit that will provide you with the highest returns.
  • Easy to manage. While having an interest rate is great, it’s also important to consider how easy it is to manage. There’s no point in having high returns if they’re difficult to manage.
  • Convenient. The bank that handles your time deposit should ideally be able to make the processes as simple as possible for you. Do they have an online profile? What method do you use to receive your pay? Will they keep you up to date?
  • Fast turnaround. Check the withdrawal processing time. This is vital in an emergency when money is needed quickly. You can’t afford to wait for the deposit to be released.

How to Open a Time Deposit Account in the Philippines

To open a time deposit account, you need the following:

  • Research. Take note. Reading and selecting interest rates is a start. However, you may have unique requirements and needs.
  • Pick a bank. Choosing a bank is crucial because you want to work with a reputable institution. Great returns with a bank you can’t trust isn’t worth it.
  • Choose the product. After selecting a bank, select their time deposit products. Consider the rate, term, and initial deposit. Do you want a fixed or floating rate?
  • Prepare the requirements. Visit their website, request brochures, or visit their office to learn more. Preparing ahead of time ensures a hassle-free experience.
  • Open the account. Bring identification, proof of billing, and the initial deposit when opening the account.
  • Track. Check to see if there is a way for you to be kept up to date on the account when you receive the certificate of deposit. Is it possible to get online? Will you be receiving mail at your address?

How to Maximize Your Time Deposit Account

Because time deposits take time to grow, one of the most difficult aspects would be learning how to wait. This section will go over financial planning tips and how to make the most of them.

That is, how to master time and avoid the temptation to cancel your account prematurely.

  • Always build an emergency fund. Take an inventory of your emergency savings. Before you begin investing or saving for a time deposit, you should have a sufficient amount of money on hand that you can access in the event of an emergency.
  • Be patient. Waiting is a virtue. Get your mind off money. Initially, this is difficult enough. You’d eventually learn to ignore that inner voice telling you to withdraw before the term ends.
  • Try other sources of Income. Get a part-time job, start a side business, or do any other income-generating activity. You’ll be less tempted to dip into your savings if you create new income streams.
  • Hold on to your goal. Resist the urge to withdraw whenever you want. This is the most difficult to master and requires the most self-discipline. Focus on your long-term financial goals and the time deposit. It will keep you from acting on impulse. Except when your financial situation has drastically changed.