14 thoughts on “Citibank’s 4.75% Savings & Time Deposit account”

  1. 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

    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!

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  2. 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.

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  3. @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)

  4. 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.

  5. 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.

  6. 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

  7. 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????

  8. hi guys lisod bitaw kaau ang banko gamay kau ang interest, if i were you i tried stock market which i’m doing it for 2 years until now,,if you want to invest in stock market ,the first thing you have to consider is about yourself,,such if you are risk taker,a market fluctuation tolerance ,my experience i started 5000k last two years now i have 25000k think about that,,

    • good day brother!…i am so interested to learn about investing in stock market..pwede ba ko nimu matabangan???..don’t hesitate to contact me..heres my email ad:iruga_rag@yahoo.com


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