Tuesday, July 11, 2006

Investing in Time deposits

Time deposit is one of the financial services that a bank offers to its clients.

It is defined as a "deposit of funds in a savings institution under an agreement stipulating that the funds must be kept on deposit for a stated period of time, or the institution may require a minimum period of notification before a withdrawal is made." Time deposits pay interest at a higher rate than the regular savings deposit, checking, or money market accounts. However, time deposits cannot be withdrawn anytime prior to maturity date without paying a penalty.

It is even possible to live off on your time deposit interest with out having to work or do business anymore


Anonymous said...

My name is Compaq. I've tried signing up but until now.. I still do no how. Thanks to Ursula's instruction now finally I can make comments.

Investing in Time Deposits caught my curiosity. Is it really possible to live off in it? I mean with time deposit interest? I can even live off without having to work or do business anymore?

You're talking of how much money should I invest in Time Deposits to enjoy the interest?

cool_78 said...

Hello compaq. Thanks for visiting my blog. When I first started working and started my business with my cousin around 2001. 1 million pesos can earn you as much as 10-12k pesos interest per month. So half a million pesos will give you approx 5k-6k interest a month. That just about the minimum wage around that time.

I wish I could say at present that you can live off your interest. at present 1 million pesos will give you only 4k+ interest a month now because interest rates have already taken a nose dive because of lower inflation. You could live off your interest IF you have millions of pesos. 100k will give you around 300 pesos interest and thats not enough even to pay our water bill. But it is still very important that you save your money and you may look into higher earning investments like UITF or mutual funds. But remember that you can loose money with these types of investment.

Hope I have provided some information that you have found useful :-)

Anonymous said...

hi i agree to wat u said about time deposit..very brief..could u please tell us which is better uitf or mutual fund? based on our economic status..ur reply will be very much appreciated..and oh please feel free to mail me johnmax1708@yahoo.com