interest sa time deposit

[honey2723]

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Wow!

Nalingaw ko ug basa sa inyong mga tubag sa TS... Asa naman tong si TS? Yoohoo!!! TS... Where are you??

Lorenzo, MeMing and Cirext, you all have your points... But I do have a question sa TS. Pila man diay iyang planong i-butang?? Basin sige mo sturya diha ug double your money in 5 years nga gi-offer ug stable banks but dili pa diay ka-abot sa minimum ang money ni TS... Luoy lang inyong fingers ug tinype diri... tsk, tsk, tsk... And wala ta kahibaw, ang personality ni TS kay dili mu-fit ug active business or stocks... Di ba, sayang lang pud...

Mu-comment lang ko gamay about the government bonds nga lock-in for 5 or 7 years. Just came from an Investment Forum held at our company yesterday and na-mention nang bonds. Okay, what I learned from that forum was that:

1: Okay guaranteed ang interest rates sa bonds, let's say 7%. Your principal is P50k. Locked-in for 5 years. Yearly interest is P3,500.
2: Now, the P3,500 will not be compounded to your P50k principal but placed in another savings account. So, didto musulod tanang tubo.
3: Once, musod na na sa savings account nimo, diha na sya taxable. Then after 5 years, you get your principal back and your tubo less the withholding tax sa tubo nimo...

Mao na akong na-kuha yesterday. Sa mga nag-invest sa bonds, mao ba jud na ang na-experience ninyo or tax-free kay more than 5 years na cya?? And mind you, professor sa UAAP and finance consultant ang nag-hatag ato sa talk...

To TS. Unsa man pud time horizon nimo for your "investment"? Unsa man pud purpose nimo for putting your money sa time deposit?? Pila man pud target nimo nga value in the end?? These are important questions that needs to be answered so that people can suggest to you better options based on your answers.

[cirext]

Lagi the TS is not revisiting this thread.
Thanks for sharing honey on govt bonds...
Gamaya ra diay sa sa govt bonds sah?..
Only 3,500 for 50k? Tsk..tsk alkanse intsik ani...

[honey2723]

Lagi the TS is not revisiting this thread.
Thanks for sharing honey on govt bonds...
Gamaya ra diay sa sa govt bonds sah?..
Only 3,500 for 50k? Tsk..tsk alkanse intsik ani...

@ cirext... example figures ra to ha! wala ko nag-sulti mao jud na... naay tag-10%, 9%, 11%... pero depende pud sa holding period... And if more ang deposit, dili na sad ko kahibaw kung pila jud ang rate kay dili ko sweto sa real figures... How they work ra akong nahibaw-an... hehe

By the way, the P3500 is the YEARLY tubo based on illustration. So, if x5 (5-year holding period), then (P17,500 - 20% withholding tax) P14,000.

[cirext]

@ cirext... example figures ra to ha! wala ko nag-sulti mao jud na... naay tag-10%, 9%, 11%... pero depende pud sa holding period... And if more ang deposit, dili na sad ko kahibaw kung pila jud ang rate kay dili ko sweto sa real figures... How they work ra akong nahibaw-an... hehe

By the way, the P3500 is the YEARLY tubo based on illustration. So, if x5 (5-year holding period), then (P17,500 - 20% withholding tax) P14,000.

Thanks for sharing honey.
Granting 12% per annum ang interest..
That's barely 1% per month...
Though banks could give you maximum of 1% per annum.
But if you are talking about investing..
I think with these bonds would fall short to higher definition of investments.

[cirext]

I better stick to put my long term savings in highly regulated funds.

Maybe you don't know kung pila kabook sa akong relatives na ilad atong double2x your money sauna especially the Chinese community.

Not to defend those people in this scam ha... but "double your money in 5 yrs" is actually very realistic bro.
You can ask those real businessmen. But of course there should be some perimeter fence on it. And it would work at a calculated number of investor & exact/targeted amount of investment.

Here's my simple illustration:
Double your money in 5 years would equate to...
100% interest in 5 yrs....
or 20% interest per annum..
or 1.67% interest per month

Dba its very attainable.

[baby_c]

Very attainable

[honey2723]

Thanks for sharing honey.
Granting 12% per annum ang interest..
That's barely 1% per month...
Though banks could give you maximum of 1% per annum.
But if you are talking about investing..
I think with these bonds would fall short to higher definition of investments.

Bonds is best for people nga dili aggressive. At least it will be at par sa inflation rate, or a little bit higher. Ang kanang 1% per annum sa banks kay either time deposit na siya... dli necessarily bonds imong gikuha sa bank. I agree with you that it would fall short sa definition of investment, kay dili man jud capital appreciation ang output with bonds but just capital preservation.

[cirext]

yes thats the way i understand it.
So "nothing to loose-nothing to gain" situation.
sayang kaayo imong kwarta..private or govt ra ang mabulahan.

Like the fool in the Parable of the Talents (im sorry for using the word but its how its stated)
Hiding money in fear that it will be lost.
When the master came back, he cursed the fool and take everything away.

[cirext]

I'll summarize my learnings:

Bank Time Deposit interest is 4-5% per annum
To beat the inflation, you need 7% interest per annum
So, bonds (10% per annum) or mutual funds (12% at least) are options for money preservation.
However, Money preservation does not gain us anything.
Its only purpose is when you want the same value of the money at least 5 years from now.
For me 5 yrs is too long, sleeping the money for this long period is too uncertain.
And when reach that year, you will definitely get the money & start from zero again.
Still I see no sense in it.
Passive investments only benefit the institutions, not the investor.

I heard somebody offering 12% per annum for business capital.. (that's equivalent to bonds & MF)
But ill guarantee you, at the end of 5 years, he will be very rich.
We as investor will just remain the same.
No purchasing power at all.
We suffer ourselves from the benefit of our money for 5 years.
In the end, it will still be the same money.
It just doesnt make any sense.

[lorenzoleo]

yes thats the way i understand it.
So "nothing to loose-nothing to gain" situation.
sayang kaayo imong kwarta..private or govt ra ang mabulahan.

Like the fool in the Parable of the Talents (im sorry for using the word but its how its stated)
Hiding money in fear that it will be lost.
When the master came back, he cursed the fool and take everything away.

Hehehehe! Sir wala may interest iyang gi lubong na money. hehehe!
Nindot man sad ng naa kay gi save ug invest for long term need(saving the right way na naay interest more than inflation). Naa man sad na sa bible Sir na keep at least 1/5 of your harvest mintras wala pa ang famine na abot sa land.

Savings in money markets is healthy for the economy since gi pa tuyok ra man sad nimu ang money aside from spending it all.

@MeMing wala man lagi nag offer ang BPI ug double your money ni ask ko taga BPI about ana, wala man daw silay gi offer ana.