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.
Details of the RCBC 5.5-year LTNCD offering
In the past several banks have already sold LTNCDs to the public. Here’s a list of banks that issued LTNCD in the past 2 years: Investing in LTNCD explained
This week, Rizal Commercial Banking Corp. (RCBC) is issuing P2 billion worth of LTNCD and the good part is that minimum investment is only P50,000. This makes it relatively affordable to individual investors.
Here are basic details about the RCBC LTNCD offering:
- Issue Size: PHP 2 billion
- Indicative Interest Rate: 4.00 – 4.125% per annum
- Tenor: 5 years and 6 months
- Minimum Denomination: P50,000
- Additional Investment: Increments of P10,000
- Offer Period: December 3-12, 2014 (subject to early closure or extension as the case may be)
- Tentative Issue Date : 19 December 2014
LTNCDs cannot be preterminated, so investors must wait for 5 years and 6 months before they can get their money back. In worst cases that the investor wants to liquidate the investment, he or she may look for another investor to sell the LTNCD to. This is allowed since this bank product is “negotiable”.
Interested investors may inquire with the primary underwriters and selling agents of the transaction such as RCBC, RCBC Savings Bank, and HSBC.
Learn more about LTNCD investing! –> What are LTNCD or Long-term Negotiable Certificate of Deposit?
Disclaimer: PinoyMoneyTalk does not endorse this product and merely provides content for information purposes. This post should not be considered a validation of or solicitation of investment for this product. We are not, in any way, beneficiaries to this transaction or employees of the issuer, underwriter, or selling agents. We highly encourage you to conduct due diligence before making the decision to invest. Take note that there is risk of losing money in any investment opportunity.