The Bureau of the Treasury (BTr) is now accepting investments for its retail treasury bonds (RTB) with a three-year fixed rate until February 6 to finance the government's priority projects.
The RTBs are part of the government's effort to encourage the ordinary Filipinos, even the farmer Cordillerans, to invest in secured investments.
In a press conference following the RTB briefing here for the Cordillera, Rosalia de Leon, national treasurer at the BTr, said several people from the region placed their money in the government's Premyo Bond that was opened in the latter part of 2019.
We hope there will be more from the region who will invest in government secured bonds, she said.
She said retail and individual investors can invest a minimum of PHP5,000 for each treasury bond.
The investment will be for three years at an interest rate of 4.375 percent per year.
She said based on BTr record, the highest gross for RTB is PHP235 billion.
This also provides better income than other investment products like time deposits, de Leon said.
De Leon also said holders of the previous RTB 3-08 have the opportunity to migrate to the new RTB 23 with a higher interest per annum.
Investors may also opt to sell their RTBs in the secondary market for revenue, in case they need the money prior to the three years maturity period.
Francis Nicolas Chua, first vice president of the Development Bank of the Philippines' finance group, said the online investment is providing the clients' suitability and convenience.
Chua said DBP is working closely with Land Bank and BTr to constantly improve the system and that the online services are functional as of now.
Gonzalo Benjamin Bongolan, Land Bank of the Philippines' first vice president, on the other hand, said the investment is included in the financial literacy of the banking institution to mainstream the people on investments and on placing their money in the bank and in secured investments.
Ordinary people as gov't investors
De Leon said the treasury office opted to open the sale of government secured bonds due to the good reception of the Premyo bonds during the last quarter of 2019 where the government exceeded its PHP3-billion target and actually obtained PHP4.95 billion.
Of the total investments, 87 percent are small individual investors with 77 percent having an investment ranging from PHP500 to PHP100,000.
What is good, the Premyo Bonds led to 1,700 new bank accounts opened, de Leon said.
This is a good sign that even the ordinary residents are interested to invest their hard-earned money and they are opening their minds to the idea of being 'banked' and not just keeping them under their beds, de Leon said.
Interested investors may avail of RTBs at DBP, Land Bank, Banco De Oro (BDO), Bank of the Philippine Islands (BPI), Chinabank, Metrobank, Philippine National Bank (PNB), Rizal Commercial Banking Corporation (RCBC), or Security Bank
Source: Philippines News Agency