In a rapidly evolving financial landscape, Filipino businesses are looking for stable, secure ways to grow their funds. Time deposit accounts provide an effective solution, allowing businesses to earn higher interest rates than typical savings accounts by locking in funds for a specific period. Here, we’ll review ten of the best time deposit accounts in the Philippines, catering specifically to the needs of businesses.
BDO Unibank Time Deposit
BDO Unibank, the largest bank in the Philippines, offers a range of time deposit options that suit business requirements. BDO’s time deposit products allow businesses to earn a steady income, with terms ranging from 30 days to five years. Interest rates increase with longer terms, making this an attractive option for businesses that can commit funds for extended periods.
- Interest Rates: Varies by term, competitive rates for longer deposits
- Term Options: 30, 60, 90, 180 days, and up to 5 years
- Minimum Deposit: PHP 1,000 to PHP 100,000, depending on the term
BPI Time Deposit
The Bank of the Philippine Islands (BPI) is known for its solid reputation and accessible banking services. BPI’s time-deposit accounts are tailored to both small and large businesses, offering flexible terms and attractive interest rates. Additionally, BPI’s strong online platform makes managing time deposits easy for business owners.
- Interest Rates: Competitive rates based on current market conditions
- Term Options: 30, 60, 90, 180 days, and up to 5 years
- Minimum Deposit: PHP 10,000 for short terms; PHP 50,000 for long terms
Metrobank Time Deposit
Metrobank’s time-deposit options provide a stable avenue for businesses to grow their money with high interest rates. This bank offers one of the more customizable time-deposit options, with terms that can be tailored to meet specific business needs. It’s especially suitable for businesses looking for larger deposit options.
- Interest Rates: Competitive, with better rates for higher deposits
- Term Options: 30 days to 5 years
- Minimum Deposit: PHP 10,000 for most terms, PHP 100,000 for preferred rates
Landbank Time Deposit
Landbank is a government-owned bank, making it a trusted choice for public enterprises and private businesses alike. The bank’s time-deposit accounts are suitable for enterprises involved in agriculture and other sectors supporting economic development, and it offers competitive rates for long-term deposits.
- Interest Rates: Based on market conditions, with good returns for longer terms
- Term Options: 30, 60, 90, 180 days, and up to 1 year
- Minimum Deposit: PHP 1,000 for short terms; PHP 50,000 for preferred rates
PNB Time Deposit
Philippine National Bank (PNB) offers a stable time-deposit option for business owners looking to make secure investments. PNB is widely accessible, with a large network across the Philippines, and it provides competitive rates for higher deposits, especially for longer lock-in periods.
- Interest Rates: Competitive, with special rates for long-term deposits
- Term Options: 30, 60, 90, 180 days, and up to 5 years
- Minimum Deposit: PHP 10,000 to PHP 50,000, depending on the term
Security Bank Time Deposit
Security Bank has gained popularity for its business-friendly services, including its flexible time-deposit accounts. Security Bank’s time deposits offer competitive rates, especially for corporate clients, with a range of term options to suit different business needs.
- Interest Rates: Competitive with additional benefits for business clients
- Term Options: 30 days to 5 years
- Minimum Deposit: PHP 10,000
UnionBank Time Deposit
UnionBank of the Philippines is known for its digital banking services, making it an excellent choice for tech-savvy businesses. Its time-deposit offerings are competitive and accessible through UnionBank’s digital platform, allowing businesses to easily manage and monitor their investments.
- Interest Rates: Attractive rates for digital account holders
- Term Options: 30 days to 5 years
- Minimum Deposit: PHP 10,000
RCBC Time Deposit
Rizal Commercial Banking Corporation (RCBC) provides time-deposit accounts tailored to the needs of small and medium-sized businesses. RCBC’s time deposits have competitive rates and are accessible at branches nationwide, which makes it a solid choice for businesses outside Metro Manila.
- Interest Rates: Varies by term; competitive for larger deposits
- Term Options: 30 days to 1 year
- Minimum Deposit: PHP 5,000 for short terms; PHP 50,000 for long-term deposits
China Bank Time Deposit
China Banking Corporation is another reputable option for businesses seeking stable time deposits. China Bank’s time deposits are suited for businesses that want flexibility in choosing term lengths. Their rates are competitive, especially for larger deposits over longer periods.
- Interest Rates: High returns for long-term deposits
- Term Options: 30, 60, 90, 180 days, and up to 5 years
- Minimum Deposit: PHP 10,000 for regular terms; higher for premium rates
EastWest Bank Time Deposit
EastWest Bank offers time-deposit accounts designed for both individuals and businesses. With competitive interest rates and flexible terms, EastWest Bank’s time deposits are appealing for small businesses and entrepreneurs who may need to access funds in the short to medium term.
- Interest Rates: Attractive for short to medium-term deposits
- Term Options: 30, 60, 90, 180 days, and up to 1 year
- Minimum Deposit: PHP 10,000
Why Consider Time Deposits for Business?
Time deposits are ideal for businesses looking for low-risk investment options that offer fixed returns. Unlike other types of investments, time deposits are not influenced by market fluctuations, making them predictable and secure. Here’s why businesses should consider time deposits:
- Predictable Income: Businesses can calculate earnings based on fixed rates, enabling better financial planning.
- Low Risk: Time deposits are insured by the Philippine Deposit Insurance Corporation (PDIC) up to PHP 500,000, adding an extra layer of security.
- Flexible Terms: From 30 days to several years, businesses can choose deposit terms that fit their financial cycles.
- Improved Cash Management: By allocating surplus cash into time deposits, businesses can optimize their cash flow without compromising liquidity.
- Tax Benefits: Interest earned on time deposits may benefit from favorable tax treatment, providing additional savings for businesses.
Factors to Consider When Choosing a Time Deposit Account
- Interest Rate: Higher interest rates will generate more returns. Check each bank’s rates regularly as they can fluctuate based on market conditions.
- Term Length: Choose a term that aligns with your cash flow needs. Short-term deposits offer flexibility, while long-term deposits typically provide higher rates.
- Minimum Deposit Requirement: Make sure your business can meet the minimum deposit requirement. Some banks offer lower rates for smaller deposits.
- Reputation of the Bank: Select banks with a strong reputation and reliability, especially those with a large branch network.
- Accessibility: Consider banks with user-friendly online platforms for easier management of your time deposits.
Takeaway
Time deposits offer a reliable way for businesses in the Philippines to grow their savings. By carefully selecting a time-deposit product that aligns with your business needs, you can maximize returns while ensuring your funds remain secure. The options listed above provide various term lengths, competitive interest rates, and flexibility to suit different business requirements. Evaluate your cash flow needs, risk tolerance, and financial goals to choose the best time-deposit account for your business.