Author Topic: How to compute time deposit???  (Read 2959 times)

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NeoGemini

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How to compute time deposit???
« on: April 23, 2012, 02:52:00 AM »
Ask ko lang po sana....nagbabalak kasi ako mag open ng time deposit.  ano po ba ang computation neto para malaki tubo?

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How to compute time deposit???
« on: April 23, 2012, 02:52:00 AM »


MoneySensePH

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Re: How to compute time deposit???
« Reply #1 on: April 23, 2012, 02:52:33 AM »
as far as time deposit ang concern po ... eto po ang computation.

principal x rate x time divide by 360days (annual interest)

let us say: P1,000,000.00 x 5% x 30days divide by 360days (kasi nga per annum)

= P4,166.66 pero less 20% withholding tax pa para sa mga government officials natin

P4,166.66 x 80%

= P3,333.33 eto po ang kinita ng pera ng isang milyon in one month's time.

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Re: How to compute time deposit???
« Reply #1 on: April 23, 2012, 02:52:33 AM »

DonaldTrumpPH

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Re: How to compute time deposit???
« Reply #2 on: April 23, 2012, 02:53:00 AM »
ito po basic formula for computing

F = P(1 + i)raise to n

i = r / m
F = P(1 + r/m)raise to nm

where:
F = future amount
P = Present amount
i = intrest
r = nominal interes
n = no of years
m = no. of compounding interest (quarterly, semiannually, annual)

mas malaking capital or principal syempre mas malaki ang tubo.... basics po ng economics.

ZuvelCompany

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Re: How to compute time deposit???
« Reply #3 on: April 23, 2012, 02:53:33 AM »
ang laki pala nung 20% na dinagdag sa tax no? bakit may iba akong nakikita at 7% yung tax na binabawas?

RichPoorDad

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Re: How to compute time deposit???
« Reply #4 on: April 23, 2012, 02:54:30 AM »
Ask ko lang po sana....nagbabalak kasi ako mag open ng time deposit.  ano po ba ang computation neto para malaki tubo?

Tama yung computation ni Moneysense... lets take another example... suppose let’s assume we opened a P100,000 time deposit account that earns 2.0% per annum. We let it stay for 35 days. Considering the 20% withholding tax charged to peso time deposits, the interest income on the account is:

    * P100,000 * 2.0% * (35 / 365 days) * 0.80 = P153.42

Most people usually think that when they are quoted an interest rate (2.0% in this case), they will get that interest no matter how long the holding period is. This is wrong. That quoted rate is an annual rate and you only earn it if you let the bank hold your money for one year.

In our example above, your principal of P100,000 would earn only the share of 35/365 of the 2.0% per annum rate, representing 35 days out of 365 days in a year that the money is with the bank. (The convention is usually 365 days but some banks may use 360 days in the computation.)

You also need to consider the 20% withholding tax charged on interest income from time deposits. This is represented by the “0.80″ in our formula above, which means, we are getting 80% of the total interest only, because we deducted the 20% withholding tax.


Thus, for a P100,000 money placed for 35 days in a time deposit (TD) paying 2.0% interest per annum, the net interest income is  P153.42. A bit small, indeed, compared to the principal placed. But then again, time deposit accounts are covered by the Philippine Deposit Insurance Corporation, which means they are virtually safe, so in effect you don’t get much return because there’s not much risk associated with a TD account.

I  hope this helps po..thanks.

ZuvelCompany

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Re: How to compute time deposit???
« Reply #5 on: April 23, 2012, 02:55:02 AM »
parang ang liit no... i think maganda kung mag invest nalang sa real estate mas malaki ang return

MotherTouch

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Re: How to compute time deposit???
« Reply #6 on: April 23, 2012, 02:55:36 AM »
para saan po pala yung mga pretermination fees pag di mo natapos yung "lock-in" period ?

RichPoorDad

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Re: How to compute time deposit???
« Reply #7 on: April 23, 2012, 02:56:23 AM »
para saan po pala yung mga pretermination fees pag di mo natapos yung "lock-in" period ?

PreTermination of Time Deposit

well, kasi most banks do not allow pre-termination of your time deposit. It is possible that you will incur a loss if you redeem or close the account prior to the set maturity date.

Ang reason daw dyan is yung Documentary Stamp Tax (DST), which the bank usually shoulders if the account is held until maturity, will now be passed on to you. Most of the time, this DST is more than the interest you earned, which means your principal can even be reduced. We thus highly encourage you to wait for the time deposit to mature rather than preterminating it.

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Re: How to compute time deposit???
« Reply #7 on: April 23, 2012, 02:56:23 AM »

 

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