“ Philippine CD Interest Rates Can Beat Inflation “

“Your Money Earns And Gains Purchasing Power”

CD Interest Rates in the Philippines lend competitive yields. The rates are improving amidst declining inflation and bank interest rates.

Coincidentally, there are manifestations of high interest savings account among most Philippine big, robust banks. The best CD rates are mostly fused with these banks.

If you deal with a top bank, you’re safe. Then this bank machine will render those real inspiring balances at maturity.

Bank Machine

Don’t forget to compute the difference between interest rate and inflation rate. That difference is called real interest rate. It indicates whether your money could increase its purchasing power or not.

A positive difference means increased purchasing power.

A real interest rate usually goes with longer and/or larger deposits. Then great percentage yield ensues, it pours heavy, and you will declare…

Great Percentage Yield Pours

Philippines CD Interest Rates History

During the 1956-1980 interval, the average 1-Year CD was 10.71%. The average inflation rate was 14.49, turning a negative 3.78% real interest rate.

In 1981-87, 1-Year CD rates averaged 17.22%. Average inflation rate was 15.54%, turning a positive 1.68% real interest rate.

In 1990-97, 1-Year CD rates slightly dipped to 16%. The 1997 Asian crisis aggravated it... rates plunged to 12.7%. Fortunately, inflation hovered at 10.2%.

Comparing Philippines CD Interest Rates, 2012

With an inflation rate of 2.8%, 1-Year CD interest rates fetch 2.75 - 3.75% in 2012. Here’s a list of the best rates for the year…

• P10,000-below P50,000 - BPI - 2.25% (30 days)
  -- 2.625% (90 days) BDO -- 1.875% (30 days) -- 2.75% (180 days) -- 2.875% (360 days) Metrobank -- 1.25% (30 days) -- 1.75% (90 days) -- 2% (180 to 364 days) PSBank -- 0.5% (30 days) -- 0.5% (90 days)
• P50,000-below P100,000 - BPI - 2.5% (30 days) --
  2.75% (90 days) BDO –- 2.25% (30 days) -- 3.25% (180 days) -- 3.375% (360 days) Metrobank – 1.5% (30 days) –- 2% (90 days) – 2.25% (180 days to 364 days) PSBank -- 1% (30 days to 90 days)
• PP100,000-below P500,000 - PSBank – 3.5% (30 days) -- 2.75% (90 days) BPI -- 2.625% (30 days) -– 2.875% (90 days) BDO -- 2.5% (30 days) -- 3.25% (180 days) -- 3.375% (360 days) Metrobank -- 2% (30 days) -- 2.5% (90 days) -- 2.75% (180 days to 364 days)
• P500,000 to below P1 million - PSBank –- 3.75% (30 days) -- 3% (90 days) BPI -- 2.75% (30 days) -- 3% (90 days) BDO -- 2.5% (30 days) -- 3.25% (180 days) -- 3.375% (360 days) Metrobank -- 2.25% (30 days) -- 2.75% (90 days) --- 3% (180 days to 360 days)
• P1 million to below P5 million - PSBank -- 4% (30 days) -- 3.25% (90 days) BDO -- 3.25% to 3.5% (30 days) -- 3.625% to 3.75% (180 days) -- 3.75% to 4% (360 days) BPI -- 2.875% (30 days) -- 3.125% (90 days) Metrobank -- 2.75% (30 days) -- 3.25% (90 days) -- 3.75% (180 days to 360 days).
  
  

My 1-year choice for now is…

A Good 1-Year CD Bet

Interestingly, the prevailing CD interest rates for 5-Year CDs and up hovers at 5.8 – 6.5%.

My 5-year choice for now is…

A Good 5-Year CD Bet

Now, don’t get me wrong. The next time you talk to your bank manager, just politely tell her ‘take my money’ now. Don’t do how this guy barks…

Do Not Be So Rude

Getting The Best Philippines CD Interest Rates

Want to get the best CD rates? Here are some basic tips...

• Shop around… compare CD rates of different banks
• Go for longer-term CDs to maximize earnings
• If able, deposit big
• Go for the big, robust banks for security
• Learn the language of CDs
• Compute the real CD interest rate
• Recognize the P500,000 ($11,900 at 42erm) deposit insurance to enhance your planning.

In Closing

CD interest rates in the Philippines are competitive. With waning inflation rate that has already reached 2.8% in 2012, the signs are encouraging. Real CD interest rates could play in the 2% region. Thus…

I can only say… JUMP IN.

See your bank now.

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