Citibank’s 4.75% Savings & Time Deposit account
June 4, 2009
Here’s another safe and relatively high-yielding instrument to place your money in. Well, it’s not really “high-yielding” compared to returns of stocks, but compared to other savings or time deposit accounts in the market, this one has one of the highest interest rates.
The Citi e-Savings Plus provides the flexibility benefits of a savings account while enjoying the interest rate of a time deposit.
Unlike a regular time deposit account, it has no lock-in period, which means there is no pre-termination fee. You can withdraw your money anytime you want.
The interest rate is a high 4.75% per annum subject to the usual 20% withholding tax. The catch, though, is that this rate applies only to the portion above P100,000. For deposits below P100,000, it does not earn any interest.
To open an account, go to any Citibank branch or call their Customer Support Number 995-9999 in Metro Manila or 234 -9888 in Cebu.
Source: www.citibank.com.ph
Disclaimer: We are not, in any way, related to Citibank and neither are we endorsing its products. Pinoy Money Talk is merely reporting investment instruments currently available in the market.
June 5th, 2009 at %I:%M %p
i think we can hardly grow our money in the bank. Even with this 4.75%, there is
always that nagging 20% withholding tax. Correct me if i am wrong with this
computation:
example — > 100 (deposit) + 4.75 (interest) = 104.75 (gross)
104.75 (gross) – 20.95 (WTax) = 83.8 (net)
**Note: this only for the first year. It will take at least 5 years to offset that
tyrant 20% WTax. And that is only the time where we start growing our money. Whew!
Topic Warehouse’s last blog post..Finding Hot Selling Products to Sell
June 6th, 2009 at %I:%M %p
Topic Warehouse you nailed it!
Actually, you only get taxed on the 4.75 interest income.
However, please dont forget the degrading effects brought about by inflation! So you in reality, 4.75% interest in a special savings account is a losing investment.
I just don’t understand why people think that putting their money in the bank is a good “investment” move.
ice_hot’s last blog post..How to get 1000+ followers in Tweeter
June 6th, 2009 at %I:%M %p
I would rather invest in real estate. For tax foreclosures for example, you earn an interest of 2% per month or 24% maximum if it takes the delinquent property owner 1 year to redeem the property. =)
Jay Castillo’s last blog post..City Of Tagaytay’s Final Notice For Public Auction Sale Of Delinquent Real Property
June 7th, 2009 at %I:%M %p
@Topic Warehouse: I thought the Withholding Tax’s 20% is from the earned interest, not the whole principal? From your example: 20% of 4.75%(interest)
June 8th, 2009 at %I:%M %p
I’m with scion on this the Withholding Tax is a tax on the earnings of the deposit.
What you have to be more scared of is the inflation rate. The Philippines’ core inflation rate hovers between 3.5-6 percent. What this means is that the value of your money goes down about 3.5-6 percent per year and any interest rate below the the inflation rate of the country it is deposited on would in essence mean you you are losing out.
June 10th, 2009 at %I:%M %p
i would rather brave my way into the stock trading floor…
elmot’s last blog post..Dont’ Vote on May 2010!!! No To Con-A** Holes!
June 11th, 2009 at %I:%M %p
This is how the Citi e-Savings Plus works:
Minimum required deposit is Php 100,000.
Interest is structured or tiered:
Less than up to Php 100,000 – Interest rate is 0%
Anyting in excess of Php 100,000 is the amount that will earn 4.75%. It means the base deposit of Php 100,000 is not included in the computation of interest, just the amount in excess of it.
Plus, there’s the dreaded 20% withholding tax.
December 29th, 2009 at %I:%M %p
lol.. wth is that computation…
example — > 100 (deposit) + 4.75 (interest) = 104.75 (gross)
104.75 (gross) – 20.95 (WTax) = 83.8 (net)
the 20% withholding tax is on the interest…
so basically you get net interest 4.75 * 0.80 = 3.8%
100 (deposit) + 3.8 (interest) = 103.8
February 8th, 2010 at %I:%M %p
You invested 1 million pesos for TD w/ interest rate of 4.75 for one year.
Your 1 million will earn you 38,000 ( 20 percent witholding tax already deducted).
The government earned 9,500 pesos from your earning. It took you One million pesos, One year waiting, plus who knows how long you and how hard you had to toil to get that 1 million pesos investment capital(savings). and the wreteched government took only one day to rip off the 9500 pesos from you. its ok if you see its going somewhere. But what does our leaders do with the money? with all their wisdom from the best universities their money can afford they decide to give it away to people in form of cash, rice on bags, canned goods etc etc. whatever happened to give fish feed him for a day,teach to fish you feed him for the rest of his life?? 4.75% VS 20% is this fair????