Time Deposits vs. Regular Savings Account

Money doesn't grow on trees, so it's wise to know the best ways to make it earn.

One investment option to earn interest is through a time deposit also known as term deposits. Generally they have:

•   fixed term for several months or year/s
•   the minimum amount is dependent on your bank. 
•   Generally, the amount cannot be withdrawn until due date, but most banks allow for early termination with penalty. 
•   The longer the term the better the yield for your money.

Banks are generally the one who accepts time deposit. By leaving your money to the bank you are actually lending your money to the bank. When you lend to somebody, you want to make sure that you will be repaid. The safety of your deposit is dependent on the bank that you choose. Choose a reputable bank with a good operating history. The Philippine Deposit Insurance Corporation or PDIC insure up to Php 500,000 deposits per account. Make sure you keep your documents in a safe place.


A time deposit definitely earns higher than a savings deposit because a savings deposit hardly earns anything. If you are young, you can keep a part of your money in time deposit but you must also learn about the other options available that can give you a better yield than a time deposit. If you are senior and retired, it is best to keep your savings in a safe investment and a time deposit from a reputable bank.

The type of investment you should choose is dependent on your personal financial situation. You should make your Personal Statement of Assets and Liabilities, similar to the SALN that everybody is now talking about because of the Corona Impeachment Trial that is going on. When you have your Statement of Assets and Liabilities, you can have a better understanding of your objectives for your investment. 

Some questions you should answer are:

• How old are you? 
• How much do you have now? 
• What are your objectives for your investment? 
• What period of time do you think you have before you need the money? 

You should always prepare for your retirement with a specific plan. One formula you should remember is: The higher the interest, the higher the risk and vice versa.