8:18 AM
viper19598
Time deposits have been a favorite financial product of many Filipinos. Apart from real estate, putting one’s long-term savings in time deposits is very typical for most people. So what makes them so attractive? And are they still a good investment, given alternatives like mutual funds, unit investment trust funds, and variable unit-linked insurance products? Here’s a quick primer:
What are time deposits?
Time deposits are interest-bearing bank deposit products that have a fixed term or period, during which they cannot be withdrawn. The advantage, says Jesus Vicente Garcia, Executive Vice President and Branch Banking Group Head of Philippine Veterans Bank, is that “time deposits earn higher interest rates, depending on the amount placed and term.”
