The Bureau of Treasury (BOT) has officially announced the availability of Retails Treasury Bonds (RTBs) starting February 26 until March 8, 2019 only.
What are Retail Treasury Bonds (RTBs)?
The RTBs are part of the government’s savingsmobilization program designed to make government securities available to retail investors, hence, the name Retail Treasury Bonds. They are issued by the Republic of the Philippines through the Bureau of the Treasury (BTr).
Why invest in RTBs?
The RTBs are designed to be a low-risk, higher- yielding and affordable savings instrument. They are considered credit risk-free /default free because they are direct, unconditional and general obligations of the Republic of the Philippines. RTBs are higher-yielding, as their interest rates are superior to other investments. RTBs are affordable. The minimum denomination is only PHP 5,000 and in multiples of PHP 5,000 thereafter.
Who can purchase the RTBs?
The RTBs aim to cater to retail investors such as individuals and corporations who are looking for a low-risk, accessible and higher-yielding investment for their savings.
Availability of RTBs
RTBs are available from February 26 until March 8, 2019 only.
Interest Rates of RTBs
The interest rates as per the official press release of BOT is 6.25% with a maturity period of 5 years.
How to apply for RTBs?
You can invest in 3 easy steps.
Inquire at your bank.
- Check if the bank offers RTBs. Use your Philippine Peso Account (or open a new one) to qualify.
- Read: List of banks that are authorized to offer Retail Treasury Bonds (RTBs)
Fill out forms.
- Fill out and submit the necessary forms.
- Provide required documents.
Pay the principal cost.
- Principal payment will be deducted from your bank account.
- Every quarter until the investment matures, the interest rates will be credited to your bank account.
- Once the RTB reachers maturity, the principal and the last interest payment will be credited to your bank account.
Disclaimer: This calculation is for illustration purposes only and should not be taken as professional advice to invest in RTBs. It should not be used as the sole basis to measure returns in said securities. Terms and conditions of the RTBs are governed by the applicable Program Mechanics and Notice of Offering issued for the purpose.
Returns displayed assume an interest period of five years and are net of 20% final withholding tax. Investment amount in RTBs is for a minimum of P5,000.00 and in integral multiples of P5,000 thereof.