Time Deposit

[wizard_jamex]

Stock Market. If one is an investor in the stock market, pang long term yan. On the other hand, if you are a stock speculator or trader, short term yan. The basic principle is buy low and sell high.

Stocks do not earn interest. You make money either by way of stock dividend, cash dividend or selling the shares at a profit.

UITF can make or unmake you.

TBills are for long term.

One can also invest in ROPs. Please take note that these are not insured by PDIC but by the
Republic of the Philippines. Between PDIC and RP guarantees, I take RP guarantee hands down.

I hope the above can give a birds eye view of the various various financial instruments available in the market. Access to these are generally made available via minimum investments.

TBills are for long term? Basin Treasury Bonds siguro....

[lodyl]

time deposit is not a good vehicle for long term investment kay most of the time the 3% to 4% interest rate cannot even beat the average inflation rate of 5%. Naa pajud withholding tax.

banks should be for emergency funds or business funds only.

if you want growth you can try stocks or mutual funds.
stocks have greater returns than mutual funds, but it also comes with greater risks.
if newbie paka sa investing, my suggestion is mutual funds and let the expert fund managers handle investing for you.

Just PM me if interested mo pa orient about mutual funds and other investment vehicles.

Interested ko to learn about mutual funds.... Will you be my mentor?

[Metz]

Interested ko to learn about mutual funds.... Will you be my mentor?

sure.
PM sent

[lintanks]

TBills are for long term? Basin Treasury Bonds siguro....

In our industry, Tbills means treasury bills. That is the term used here in the Philippines.

[lorenzoleo]

I think time deposit is good for those people who are "segurista" in their money. But I don't take it against them coz it's their hard earned money, and they have the right to protect it. However, the strange thing is that you can't protect your money from inflation if you park it in the bank via time deposit. You may not feel the inflation right away but later on you'll just be shocked to know that your money has depreciated its value over time-- this is the effect of putting your money in a time deposit account.

Yes it is good for them but in reality they are actually losing the buying power of their money, due to inflation.

[wizard_jamex]

In our industry, Tbills means treasury bills. That is the term used here in the Philippines.

I know...that's why nag tingala ko nga long term ang gipost diri. According to treasury.gov.ph, Treasury Bills are government securities which mature in less than a year. There are three tenors of Treasury Bills: (1) 91 day (2) 182-day (3) 364-day Bills. The number of days are based on the universal practice around the world of ensuring that the bills mature on a business day. Treasury Bills are quoted either by their yield rate, which is the discount, or by their price based on 100 points per unit. Treasury Bills which mature in less than 91-days are called Cash Management Bills

Tbills is a short term...not a long term.

[lintanks]

I know...that's why nag tingala ko nga long term ang gipost diri. According to treasury.gov.ph, Treasury Bills are government securities which mature in less than a year. There are three tenors of Treasury Bills: (1) 91 day (2) 182-day (3) 364-day Bills. The number of days are based on the universal practice around the world of ensuring that the bills mature on a business day. Treasury Bills are quoted either by their yield rate, which is the discount, or by their price based on 100 points per unit. Treasury Bills which mature in less than 91-days are called Cash Management Bills

Tbills is a short term...not a long term.

Sakto ka. Tbills are for short term or up to 365 days only. Typo error. The main purpose of TBills issuances is to contract or expand money supply.

Money managers with short terms funds can only have certain elbow room to play around with their investible funds (depending on the instructions of money sources). Minimum investment of 200k and interest earned are subject to withholding tax of 20%. Due to competition, the term can be lowered. However, it is normally the big player with big appetites who are lording over the market.

Banks with excess funds park their funds with these short term funds. Or re-sell these at a spread. Then the proceeds are again re-invested.

On the other hand, ROP Bonds are short, medium to long term. The can be as long as twenty years or more depending on the terms offered.

For example, come February 22 or tomorrow, there will be an auction for the Fixed Rate Treasury Retail Bond with a term of 5 and 10 years, or maturity in 2016 and 2021. Public Offer Period February 22 to March 1. Issue Date March 3. Minimal nominal aggregate amount of PhP20,000,000,000.00. These are sold to securities dealer who in turn sell to big ticket investors and in turn to other investors. Yield is represented by coupons denominated or expressed as a percentile of the face value (par) on annualized basis, and payable semi annually.

Hope this will clarify and simplify a facet of a rather complex operation of a fund manager.

[wizard_jamex]

Sakto ka. Tbills are for short term or up to 365 days only. Typo error. The main purpose of TBills issuances is to contract or expand money supply.

Money managers with short terms funds can only have certain elbow room to play around with their investible funds (depending on the instructions of money sources). Minimum investment of 200k and interest earned are subject to withholding tax of 20%. Due to competition, the term can be lowered. However, it is normally the big player with big appetites who are lording over the market.

Banks with excess funds park their funds with these short term funds. Or re-sell these at a spread. Then the proceeds are again re-invested.

On the other hand, ROP Bonds are short, medium to long term. The can be as long as twenty years or more depending on the terms offered.

For example, come February 22 or tomorrow, there will be an auction for the Fixed Rate Treasury Retail Bond with a term of 5 and 10 years, or maturity in 2016 and 2021. Public Offer Period February 22 to March 1. Issue Date March 3. Minimal nominal aggregate amount of PhP20,000,000,000.00. These are sold to securities dealer who in turn sell to big ticket investors and in turn to other investors. Yield is represented by coupons denominated or expressed as a percentile of the face value (par) on annualized basis, and payable semi annually.

Hope this will clarify and simplify a facet of a rather complex operation of a fund manager.

cool....nag auction na diay ang bureau of treasury.....

[neo4596]

Hapit jud ko ni-avail atong sa Landbank na time depost kadtong "harvest five", which means i-time deposit nmo imong 100k for five years with 4% interest per annum man tingali to.

[wizard_jamex]

Hapit jud ko ni-avail atong sa Landbank na time depost kadtong "harvest five", which means i-time deposit nmo imong 100k for five years with 4% interest per annum man tingali to.

whaaaaaaaaaaaa.......hapit raman kaha.....okay ra na. Puwede sad ka mosulay sa Treasury Bonds or Treasury Bills.... Murag more then 4% man ang interest rate. it's a safety investment, because your money will be invested to the Philippine Government as a way of raising funds.