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.
How are LTNCDs different from time deposits?
LTNCDs are similar to time deposit accounts except for the following: (a) LTNCDs are long-term in nature, usually with maturities of at least 5 years and 1 day; (b) unlike normal time deposits, LTNCDs cannot be pre-terminated, meaning the investor has to wait for the time deposit to mature; (c) LTNCDs are negotiable, which means they can be used as collateral for a bank loan or sold to other investors.
Are LTNCDs covered by the PDIC?
Yes, because LTNCDs are considered deposit accounts. As such, investments can normally be made up to P250,000 only per person. This is because a bank depositor is covered by the Philippine Deposit Insurance Corp. (PDIC) only up to P250,000.
How much is the interest rate and minimum investment amount?
These details will be announced shortly by Metrobank.
How can I invest in Metrobank’s LTNCDs?
Drop by any Metrobank branch to inquire how you can invest in long-term negotiable certificates of deposits (LTNCD).