Good news for everyone who wants to start investing in bonds – the Philippine Government is making available Retail Treasure Bonds or RTBs this September 2016. Get this sure investment with fixed-interest income!
How safe are investing in bonds? RTBs which are issued and backed by the PH government are categorized as low-risked investment instruments. It is payable by the government so RTB Philippines 2016 are virtually risk-free investment.
This year’s RTB offer to the public is the Retail Treasure Bond Tranche 18. There are existing RTBs issued like last June 2003.
Advantages of RTBs: The good things about Retail Treasury Bonds are that, first this is a higher yield investment instrument especially if compared to the current interest rates in bank savings account and regular time deposits. Second, this is an affordable investment, you can already invest as low as P5000. Third, you will get regular income from this particular RTB investment thru the quarterly interest payments that you will receive. Fourth, should you want quick cash, you can easily sell your RTB investment in the secondary bond market for there is a high buying interest for issued government bonds. Fifth, it is convenient to buy.
If you are interested to buy or participate in this bond issue 2016, here are the details:
Public Offer Period: September 6 to 16, 2016
Maturity date: 10 years from issue date (September 2026)
Interest rate: 3.50% per anum
Interest payments: Quarterly subject to 20% withholding tax except for tax-except institution.
** You will earn at 0.875% per quarter depending on the amount you invested. Note that interest earn will be subject to a 20% tax rate.
Form: Uncertificated; to be registered with the Registry of Scripless Securities (RoSS) of the Burea of Treasury
Denominations: Minimum amount of P5000, additional amounts must be multiples of P5,000. Example: P20,000 or P35,000 or P50,000.
Negotiability: Negotiable and transferable
Sinking Fund: The Republic of the Philippines may set up a sinking fund with the Bureau of Treasury in order to accumulate the amount necessary to pay the principal of the RTBs on Maturity Date.
What if you invest in this RTB and hold this for 10 years – How much will you get on maturity date? You will get the exact amount you invested in. If you invested P50,000, you will get P50,000. If you are thinking, what happened to the interest rate? You have to recall that interest payments are done quarterly; you would have received interest payment every quarter.
What if you need the money invested in RTB after 4 years, can you cash out or preterminate the RTB? No you can’t since RTBs are investment instrument that cannot be pre-terminated HOWEVER, you can always SELL your RTB in the secondary bond market.
Can OFW invest in RTBs or those Filipinos currently abroad? Yes, you can!
For OFWs and Filipinos based abroad who wants to invest in RTB, you can assign someone to transact on your behalf but you will be required to submit a Special Power of Attorney (SPA) duly authorized by the Consul.
Is “Joint” account for RTBs possible? Yes, you can open individual accounts or joint account provided that the peso bank account connected to the RTB will have the same name. Example: You and husband will buy RTB, the nominated bank account must also be a JOINT account of you and your husband.
Where to Buy Philippine RTB Tranche 18? You can purchase Retail Treasury Bonds via selling agents. Who are the selling agents for this 2016 offer? Check this list of RTB banks and other financial institutions:
- RTB via Banco de Oro (BDO)
- RTB via China Banking Corporation (Chinabank)
- RTB via Citibank N.A.
- RTB via Development Bank of the Philippines (DBP)
- RTB via East West Banking Corporation
- RTB via Land Bank of the Philippines (LBP)
- RTB via Metropolitan Bank and Trust Company (MBTC)
- RTB via Philippine Bank of Communications (PBCom)
- RTB via Rizal Banking Corporation
- RTB via Security Bank Corporation
- RTB via ING Bank
- RTB via BPI Capital Corporation
- RTB via First Metro Investment Corporation
- RTB via Robinson Bank Corporation
- RTB via BDO Capital and Investment Corporation
Invest na sa bayan! Invest sa Pilipinas! Mag Retail Treasury Bond investing na!