Time Deposits

Time deposits are the most commonly known "investment" in the Philippines. The logic behind this is that you put your money into a long term savings account, meaning you can't touch your money for a certain period of years. Nowadays, there are already 360 day terms for those who can't afford to let their money stay in a bank for too long. Interests vary from 3% to 7%. Although very few banks offer a very high interest for time deposits. The longer your money stays with the bank, the higher the interests will become.

This is risk-free since most of the interest rates are fixed. The only risk is if you deal with smaller banks that offer very high interest rates that are very suspicious. Just be sure to research first before putting your money in their basket. Having a Time Deposit is like lending your money to the bank and the interest is like the premium they are paying you for lending some to them. Some say that when a bank badly needs money, interest rates tend to be higher.