Worth the Wait: How to Open a Time Deposit Account in the Philippines

Quick take: How much are time deposit interest rates in the Philippines? 

It depends on the bank, luv! If you want to save and earn big with a Time Deposit, choose Tonik. Earn up to 6% interest p.a. Just make sure to maintain an average daily balance (ADB) of PHP10,000! Never heard of an ADB before? Learn more here.  

The best things in life are worth waiting for, luv. That’s what makes growing your savings with a time deposit so satisfying! 

Never tried one before? Don’t worry, there’s a first time for everything. Read this blog to learn about time deposit interest rates, how to open one, and more!

What is a Time Deposit

A time deposit is a savings option that lets you lock in your money for a fixed period of time. That means you won’t be able to withdraw it until maturity. That's worth it though, because time deposits typically offer higher interest rates!  

How Time Deposits Work

How do time deposits work? Time deposits require locking in your funds for a specified period, such as 30 days, 90 days, 1 year, or longer.  

Waiting around for your time deposit to mature can make you antsy. Rest assured that your funds will earn a fixed interest rate that doesn’t fluctuate, offering a predictable return. That’s the difference between time deposits and investments, the latter being riskier and more unpredictable. 

As mentioned earlier, time deposit interest rates are typically higher compared to regular savings accounts, making them an attractive option for secure savings growth. Plus, maintaining a time deposit account and managing it responsibly can demonstrate financial discipline, which can indirectly boost your credibility when applying for future financial products, such as loans. 

Factors Affecting Time Deposit Interest Rates

While most digital banks offer fixed time deposit interest rates, there is still a chance that those rates will fluctuate. Here are some factors that may affect time deposit interest rates: 

• Economic Conditions: Interest rates often reflect inflation and central bank policies.
• Bank-Specific Policies: Competition influences rates—some banks like Tonik offer higher-than-average rates.
• Term Length: Longer terms usually yield better rates.
• Deposit Amount: Higher deposits may unlock promotional rates. 

Time Deposit Interest Rates in the Philippines 

BPI

• Peso Auto Renew: Choose from 35, 63, 91, 182, and 365-day terms. The interest rate per annum ranges from 0.2500% to 0.7500% depending on your term and deposit amount. The required initial deposit is PHP50,000.
• Plan Ahead Time Deposit: A 5-year, tax-free time deposit with a fixed interest rate.  
• BPI Foreign Currency Time Deposit: Allows you to save foreign currency. The required initial deposit and interest rate depends on the term, currency, and amount. The time deposit interest rate ranges from 0.050% to 0.125%. 

Metrobank 

• Peso Regular Time Deposit – Lets you save from PHP10,000 up to more than PHP20,000,000. Terms range from 13 to 364 Days. Time deposit interest rates can go from 0.125% to 0.500% depending on your deposit amount and term.
• Online Time Deposit – Lets you save from PHP10,000 up to more than PHP20,000,000. Terms range from 1 month to a year. Time deposit interest rates can go from 4.125% to 4.500% depending on your deposit amount and term.
• Foreign Currency Regular Time Deposit – Lets you save foreign currency with interest rates ranging from 0.05% to 3.50% depending on the currency, deposit account, and term.
• MetroDollar Time Deposit – A time deposit specifically for U.S. dollars. You can deposit from USD1,000 to USD1,000,000 with terms ranging from 7 days to 12 months. Interest rates range from 0.05% to 0.15% 

BDO 

• Peso Time Deposit – Lets you save as little as PHP1,000 to below PHP1,000,000. Interest rates per annum range from 0.125% to 0.250%. Terms include 30, 60, 90, 180, and 360 days.

Security Bank 

• Peso Time Deposit – Has a required initial deposit of PHP100,000. Terms range from 30, 60, 90, 180, 360 days, 2-5 years and 7 years. Interest rates per annum range from 0.20% to 4.05%.  

UnionBank 

• Peso Time Deposit - Has a required initial deposit of PHP50,000. Terms range from 7, 20, 29, 59, 89, 179, and more than 360 days. Interest rates per annum range from 0.20% to 4.05%.   Interest rates per annum range from 0.100% to 1.250%.  

How to Choose the Best Time Deposit

• Align with your financial goals – Choose the time deposit that can best help you in achieving your goals.
• Compare rates and terms across banks – Don't go for the first time deposit you see. Pick one with the best rates and terms!
• Understand penalties for early withdrawal – You might need to withdraw early in case of financial emergencies. Play it safe and check the early withdrawal rates when you shop around for a time deposit.
• Factor in inflation to ensure net gains – Choose time deposits with interest rates higher than the inflation rate, so your money's purchasing power doesn’t diminish over time. 

How to Open a Time Deposit in the Philippines

The process can vary from bank to bank, but here’s the general process:

1. Choose a bank that’s best suited for your financial needs.
2. Submit a valid ID and other requirements.
3. Deposit the required minimum amount (if any) or any amount you want. 

Alternatives to Time Deposits

• High-Yield Savings Accounts: Like Tonik Stashes! High-yield savings accounts usually offer flexible and competitive rates.
• Investments: Bonds and mutual funds for higher potential returns but with more risk. 

Tips to Maximize Returns

• Ladder Deposits: Split funds across different term lengths for better liquidity.
• Look for Promotions: Take advantage of special offers.
• Reinvest Earnings: Grow your savings faster by rolling over your time deposits. 

Time to Bank with Tonik, Luv! 

Time deposits are a reliable way to grow your money, but not all are created equal. Choose wisely based on your goals and consider Tonik for its unbeatable rates of up to 6% p.a. Download the Tonik App today and let your money work smarter for you!