12 Best Time Deposit Accounts with High-Interest Rates in the Philippines

Last Updated – Mar 12, 2024 @ 11:53 am

Having a savings account is a great way to keep to track of your finances.

But if you’re looking to make the most out of your hard-earned money, you may want to explore the possibility of opening a time deposit account.

What is a Time Deposit Account?

A time deposit is a type of investment wherein the deposit is locked in for a set amount of time.

Compared to a savings account, time deposits have relatively higher interest rates and are considered virtually risk-free investments, as amounts of up to P500,000 are insured by the Philippine Deposit Insurance Corporation (PDIC).

Related: How to Open a Bank Account in the Philippines

How Time Deposit Works

Depending on the bank you choose, the initial deposit (also referred to as minimum placement) can be as low as P1,000 and as high as P50,000.

You can then choose your lock-in period (aka terms of placement, maturity, or tenor), which is the length of time the deposit remains with the bank. Most financial institutions set a minimum lock-in period of 30 days, and a maximum of 5 years and 1 day. You can also opt for 60, 90, 180 days, 1 year, or longer.

The higher the initial deposit, and the longer the lock-in period, the higher the returns are on the deposit.

Interest computation:

If the lock-in period is less than or equal to 1 year:

(Interest rate) x (360) x (lock-in period in days) / 360) x (Deposit amount)

If the term is more than 1 year:

(Interest rate) x (lock-in period in days) / 365) x (Deposit amount)

A withholding tax of 20% (for Philippine pesos) will be charged. So when you receive your interest upon maturity of tenure, you will only receive 80% of the interest income.

Related: How to Invest in LTNCDs in the Philippines

Pros & Cons of Having a Time Deposit Account


Also referred to as passive income, there are a number of benefits you can get from this short to medium-term investment. These include:

  • Higher interest rates than regular savings accounts (depending on the prevailing daily market rate from the Bangko Sentral ng Pilipinas).
  • Flexible maturity. As noted earlier, you can choose to have your deposit locked-in from 30, 60, 90, 180 days, 1 year, or longer.
  • Limited risk due to PDIC coverage
  • Ensures savings as money is locked away.


However, should an emergency arise and you need to withdraw your deposit, fees will be charged when you pre-terminate the time deposit.

Generally, if pre-termination is within the first half of the lock-in period, interest will only 75% of what you would’ve gotten had you allowed the time deposit to mature. And if pre-termination occurs during the second half of the lock-in period, interest will go down further to 50%.

Additionally, apart from the withholding tax, you will need to pay a documentary stamp tax. This amounts to P1 for every P200 of the initial deposit (or a fraction thereof).

So if you’re looking to open a time deposit account, you will have to weigh if the relatively risk-free investment is worth sacrificing financial flexibility.

Also Read: How to Get a Credit Card in the Philippines

Top Time Deposit Accounts in the Philippines

If you find that a time deposit works for your personal financial structure, here are the top time deposit accounts in the country.

For the purposes of this article, the interest incomes shown below assume an initial deposit of P100,000 and a lock-in period of 1 year (source: PesoLab).

It also shows the accrued income should you choose to let the deposit rollover in the time deposit for 10 years. Withholding tax has already been deducted in the computed income.

Bank NameInterestAfter 1 yearAfter 10 years
Tonik Bank4.75%P4,750P59,052.43
Security Bank4%P4,000P48,024.43
BPI Direct/Family1.125%P900P9,373.39

1. Tonik Bank

Interest: 4.50% to 6% p.a.
Minimum initial deposit: P5,000
Terms: 6 months, 9 months, 12 months, 18 months, 24 months

With Tonik, you can enjoy as much as 6% interest per annum for your time deposit account. It’s also a great choice for people who want to access their money during emergencies because you can get it anytime.

Even an early withdrawal after 5 days will give you 1% interest, subject to 20% withholding tax. The maximum amount for Tonik Time Deposit is P100,000.

2. Security Bank

Interest: 4%
Minimum initial deposit: P100,000
Terms: 30, 60, 90, 180, 360 days, 2-5 years, and 7 years

Apart from having the best time deposit interest rates in the market, Security Bank’s Peso Time Deposit also exempts accounts with terms of 5 years or more from paying taxes. However, its initial deposit requirement is also higher than most if the banks on this list.


Interest: 3.50% (for an initial deposit of P100,000)
Minimum initial deposit: P1,000
Terms: 30, 60, 90, 120, 180, and 360 days

It is important to note that should you opt for the minimum initial deposit, the interest rate is 1.750%. PBCOM also offers two types of peso time deposit accounts:

  • Regular – P1,000 minimum initial deposit. Provides a certificate of time deposit as proof of account ownership.
  • Passbook – P50,000 minimum initial deposit. Provides passbook as proof of account ownership. Interest is credited to passbook account upon maturity.

4. EastWest Bank

Interest: 3.125% (for an initial deposit of P100,000)
Minimum initial deposit: P10,000
Terms: 30, 60, 90, 180, 360 days, and up to 5 years

EastWest not only provides the third-highest interest rates in the market, it also makes opening a time deposit account convenient for everyone by allowing online enrollment. This entails accomplishing an online form, which will then get you an email confirmation. After which, you’ll just need to provide additional supporting documents at the branch nearest you.


Interest: 2.5% (for an initial deposit of P100,000)
Minimum initial deposit: P5,000
Terms: 30, 60, 90, 180, 360 days, and up to 5 years

Again, it’s important to note that with RCBC, the minimum deposit of P5,000 earns 1.625%.

6. Maybank Philippines

Interest: 1.75% (for an initial deposit of P50,000)
Minimum initial deposit: P50,000
Terms: 1 and 2 years

Maybank’s ADDvantage Flex Time Deposit comes with tiered rates of 1.75% for 1-year term, and 2.125% for 2-year term. It’s important to note that while Maybank guarantees a base, interest may increase or decrease during the placement period.

However, it shall never be lower than the rate given at the start of the placement.

7. PSBank

Interest: 1.50% (for an initial deposit of P50,000)
Minimum initial deposit: P10,000
Terms: 30, 60, 90 days, and 1 year to 3 years

8. BPI Direct / Family Savings Bank

Interest: 1.125% (for an initial deposit of P50,000)
Minimum initial deposit: P50,000
Terms: 35, 65, 91, 182 days, and 364 days

Both BPI Direct, and Family Savings offers two products:

  • Peso Auto Renew – Renews placement for a fixed yield automatically
  • Peso Express Tie Deposit – Ideal for short-term investments, with terms as short as 30 days

9. China Bank

Interest: 1.075% (for an initial deposit of P100,000)
Minimum initial deposit: P5,000
Terms: 90, 180, and 360 days

Should you choose to invest the minimum initial deposit of P5,000, you’ll be earning 0.950% annually.

10. Metrobank

Interest: 0.875% (for an initial deposit of P50,000)
Minimum initial deposit: P10,000
Terms: 30 days, 2-3 months, 180 days, and 1 year

11. Unionbank

Interest: 0.875% (for an initial deposit of P50,000)
Minimum initial deposit: P50,000
Terms: 30, 60, 90, 180 days, 1 year and above

12. UCPB

Interest: 0.75% (for an initial deposit of P100,000)
Minimum initial deposit: P10,000
Terms: 90, 180, and 360 days

13. BDO

Interest: 0.75% (1-year term)
Minimum initial deposit: P1,000
Terms: 30, 60, 90, 180, 360 days

BDO lets you open a time deposit account for as little as Php1,000. 

How to Open a Time Deposit Account in the Philippines

Opening a time deposit account is a pretty straightforward process.

While minute details and paperwork may differ slightly from bank to bank, the general steps involved are basically the same.

Step 1: Prepare the minimum required deposit money and bring 1-2 valid IDs.

Step 2: Visit the bank branch you’ve chosen to open a time deposit account with.

Step 3: Discuss the savings features and ask any questions you might have about the product. Once satisfied, complete the required form.

Step 4: Submit the completed form along with photocopies of your valid IDs.

Step 5: Hand over the minimum required deposit to the bank personnel.

Step 6: Get your Certificate of Deposit (CD).

Also Read: Best Checking Accounts in the Philippines

How to Open a Time Deposit Account Online

Opening a time deposit account is really no different from setting up your typical bank deposit accounts like savings or checking. Here are the general steps for most banks:

Step 1: Visit your chosen bank’s official website and click on the time deposit option.

Step 2: The page will provide you with all the details about that bank’s time deposit product: features, requirements, fees, and charges, etc.,

Step 3: Download the application form then complete all the required fields. Print the form and submit to your bank’s nearest branch along with the requirements.

Things to Consider Before Opening a Time Deposit Account

With over a dozen banks to choose from, deciding where to open a time deposit account can be daunting.

To help you choose the best option, we’ve compiled a list of key things to consider before you open a time deposit account.

Interest rates

The higher, the better. Pick one that features better-than-average rates when you can. Remember, your money will be locked in for a considerable period of time.

Best to choose a time deposit account that will give you the best return for your money. The longer the term, the better interest rates for your money in most cases.

Minimum deposit required to earn interest

Most banks use a tiered approach for applying interest rates on the account holder’s balance.

However, there are banks that require a higher minimum initial deposit than others in order for the balance to earn interest, with a few starting at 100,000.

If you have a small amount to start with (less than 100k), look for banks that offer a lower minimum placement fee.  

Fees and charges

Try to look for time deposit accounts that are not too stringent in terms of penalties and charges.

For example, should you need to withdraw your money prior to maturity, you’ll incur a penalty for early withdrawal. In this case, a lower termination penalty serves you better.

Maturity Period

You’ll have several options with regard to how long you’d like to keep your money in a time deposit account. Choices range from 1 month up to a year or up to several years (5 years max).

In general, the longer you keep your money in the bank, the better the corresponding interest rate and bigger gains due to the longer compounding

Other banking features

Sometimes we end up choosing one bank over the other because of the “extras” you’ll get.

Stuff like: better execution of online features, easy linka-bility to mobile payments, availability of a mobile app, better customer support, and others, can influence our pick more likely than we realize.

Pick one that provides the most, if not all, of the features that you will end up using often.

Disclaimer: Grit PH strives to post up-to-date information on all investment, banking, and other financial products we feature. However, information may change without notice. Therefore, we do not guarantee the accuracy of the information listed on the website, including those provided by third parties at any particular time. 

It is best to review the updated terms and conditions of your chosen financial institution. Grit PH is not affiliated with the companies mentioned in the article. All testimonials and opinions are representative only of the writer’s experience, but the results will be unique to each individual.

About Amiel Pineda

Amiel Pineda is the Head of Content at Grit PH.

He started freelance writing in 2010 doing product reviews and tech news. In 2018, he became a full-time freelancer, writing in the financial space and creating content for clients in various niches.

Prior to freelancing full-time, he worked 7 years in the financial services industry for a Fortune 500 company.

He also writes on his personal blog, Homebased Pinoy (https://homebasedpinoy.com/), where he shares tips and guides as a work-from-home freelancer, along with NFT-game guides.

Education: Technological Institute of the Philippines (Bachelor of Science in Electrical Engineering)
Focus: Freelancing, Entrepreneurship, Financial Products, Investing & Personal Finance

Reader Interactions


  1. Dan Dima-ala says

    Hi Joecy,

    Digital banks with their high-interest rates are excellent alternatives to time deposits, at least as of this writing. I understand the apprehension people have with digital banks. They are relatively new products after all.

    But know this. All digital banks are PDIC members, insured up to Php500,000. Yes, exactly like traditional banks. Interests currently range from 2.5% to 4%. I expect these to regress to lower levels, but possibly still substantially more than what traditional banks offer.

    If you’re still apprehensive because of their size (smaller asset base compared to traditional banks), also know that some are in fact larger than our Country’s largest bank. CIMB is a Malaysian universal bank significantly larger than BDO. I trust them to take care of their Philippine entity.

    You can create an account, with the digital bank of your choice, by downloading the app and submitting your requirements. No need to leave the house. 🙂 Good luck!


  2. Danielle Garcia says

    I once deposited 100k at BDO for one year. I only get few cents because I was late for a few months in withdrawing the money. Lesson learned, never time deposit in BDO.

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