In the past, we’ve discussed a variety of investment options for the average retail investor, including Stocks, Bonds, Mutual Funds, UITFs, and Preferred Shares, among others.
We now add another asset class to our investment portfolio. Here are details about Long Term Negotiable Certificate of Deposit (LTNCD) — a relatively safe bank product that offers higher interest rate than your regular savings accounts.
If you’re looking for non-traditional investments that are relatively safe, you may check out LTNCD or Long-Term Negotiable Certificate of Deposit.
LTNCD is a bank product very similar to Time Deposits, except that they have longer maturity periods. While most Time Deposits mature in 1 month, 6 months, or 1 year, LTNCDs usually mature in at least 5 years.
One good thing about LTNCD is that investments up to P500,000 are covered by the Philippine Deposit Insurance Corp. (PDIC), which makes this option a relatively safe investment asset.
Effective January 1, 2014, retail investors (meaning, individuals) will not be allowed to invest in Special Deposit Accounts (SDA) anymore, according to a recent Bangko Sentral ng Pilipinas (BSP) memorandum.
BSP Memo number 2013-021 issued on May 20, 2013 restricted access to SDAs only to trust accounts and Unit Investment Trust Funds (UITFs). “Other fiduciary business including agency accounts and investment management activities (IMA) shall no longer have access to the said facility,” the memo explained.
We recently received an email from one of our readers asking how to determine the interest earnings on his time deposit account. In response, we explain below how exactly it’s being computed.
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.
It is reported that the Bangko Sentral ng Pilipinas (Central Bank of the Philippines) successfully secured with the Supreme Court last week a Temporary Restraining Order (TRO) on enforcement of lower court rulings that favored several banks under the Legacy Group.
According to the story:
The high tribunal’s decision effectively gives banking regulators the green light to act on adverse findings made during their last examination of the 10 financial institutions scattered around the country.
The financial institutions covered by the ruling are Rural Bank of Parañaque Inc., Rural Bank of San Jose (Batangas) Inc., Rural Bank of Carmen (Cebu) Inc., Pilipino Rural Bank Inc., Philippine Countryside Rural Bank Inc., Rural Bank of Calatagan (Batangas) Inc. (now Dynamic Rural Bank), Rural Bank of DARBCI Inc., Rural Bank of Kananga (Leyte) Inc. (now First Interstate Rural Bank), Rural Bank of Bisayas Minglanilla (now Bank of East Asia), and San Pablo City Development Bank Inc.
The Philippines’ largest bank, Metropolitan Bank and Trust Co. (Metrobank), is expected to offer to the public more than P10 billion worth of high-yield time deposit products after the Bangko Sentral ng Pilipinas (BSP) appoved last week the bank’s planned offering of long-term negotiable certificates of deposits (LTNCD).
What are LTNCDs?
Long-term negotiable certificates of deposits (LTNCDs) are peso-denominated negotiable certificates of deposites that usually mature after five years.
In this day and age, can you really judge a person’s financial capability based merely on appearance?
Some staff of Banco de Oro (BDO), one of the country’s leading banks, seem to think they can.
Several PMT members narrated in the forum’s Discriminating BDO bank manager thread how they were treated differently or, worse, badly just because they visited a BDO branch with an “unprofessional” attire or look.
