Time deposits in the Philippines, explained

A time deposit locks your money with a bank for a fixed term at a fixed rate. In return you usually get a higher rate than a savings account. When comparing offers, the headline rate matters less than four other things: the rate after tax, the minimum deposit, the term, and what happens if you withdraw early.

How interest is worked out

Interest is usually worked out as: the amount you deposit, times the yearly rate, times the part of a year the money is held. A one-year deposit earns the full yearly rate; a 90-day deposit earns about a quarter of it. Some banks pay interest at the end, others monthly or quarterly. The bank must tell you the effective yearly rate and the formula it uses, and attach them to your time deposit certificate (BSP Manual of Regulations for Banks, Sec. 262).

To run your own numbers, use the time deposit calculator.

Tax on interest

Interest on peso bank deposits is subject to a 20% final tax, withheld by the bank (NIRC Sec. 24(B)(1) as amended by RA 12214). From 1 July 2025 this applies “regardless of their nature or tenure” (BIR Revenue Regulations 21-2025, Sec. 3), so the old exemption for deposits of five years or more is gone. A deposit made before 1 July 2025 keeps its old tax treatment for the rest of its term, as long as it is not renewed and its maturity is not changed (RR 21-2025, Sec. 10).

Comparing rates

Rates change often, so this page shows none. Check each bank’s own rate page on the day. To compare two offers fairly:

1. Use the rate after tax. Take 20% off the interest.
2. Match the term. Compare a 90-day rate with a 90-day rate.
3. Check the minimum and whether the rate changes with the amount.
4. Check how often interest is paid and whether it is paid out or added to the deposit.
5. Read the early withdrawal rule.
6. Check PDIC cover if the amount is large (below).

The BSP publishes average time deposit rates across banks in its statistics, in Table 19, selected domestic interest rates, which shows what is typical.

Early withdrawal and rollover

• Early withdrawal. Whether you can take the money out before the term ends, and what interest you then get, is set by your deposit agreement. Read that part before you sign.
• Rollover. A time deposit that is not withdrawn or renewed when it falls due is treated as a savings deposit and earns the savings rate (BSP Manual of Regulations for Banks, Sec. 261). If your deposit agreement provides for automatic renewal, the deposit renews instead. Check what yours says and diarise the maturity date.

PDIC cover

Time deposits in banks are insured by the Philippine Deposit Insurance Corporation up to PHP 1,000,000 per depositor, per bank, since 15 March 2025 (PDIC). The limit is per bank, so deposits you hold in your own name in the same bank count together toward it. A joint account is insured separately from deposits in your own name, and its cover is shared among the account holders (PDIC Charter as amended by RA 11840). Investment products sold in banks, such as bonds, securities and trust accounts, are not insured (PDIC FAQs).

For money you may need any time, see high interest savings accounts.

See digital banks.

For a short-term government option, see Treasury bills.

For all the ways to save and invest, see the investing guide.

This page explains how time deposits work. It does not recommend any bank or product.