January 07, 2013

How to Open Time Deposit in BPI

As I mentioned in my other post I will start the year right so last Friday I went to the bank to open time deposit. Time deposit is a type of deposit held for a fixed term, 35 days, 62 days or 91 days wherein depositor cannot withdraw until the maturity date. Well, of course, you can still withdraw but there’s a penalty if you withdraw before the maturity date.

Time Deposit is good if you really want to save because you cannot withdraw it anytime. It is better than saving your money in regular savings because Time Deposit offers higher interest rate. It also serves as an emergency fund. 

My first experience of Time deposit was year 2006 then I withdraw it on 2008, a few months before I gave birth because I need money to buy baby stuff. It was an early withdrawal so I incurred a penalty.

It is not difficult to apply for Time Deposit, just visit your bank and apply. Bank staff will just ask you if you have a present account, then choose among the available terms: 35, 62, or 91 days and choose between two interest payment options: Credit interest to your deposit account at the end of the term, or add the interest back to your principal.

I chose 91 days and add the interest back to my principal for higher interest rate and gain. After several minutes, bank staff gave me my Time Deposit Certificate. 

By the way, as low as P10,000 you can apply for Time Deposit and as low as P1,000 you can apply Time Deposit Online but there’s no certificate. (depends on the bank)

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