BY EDISON JOSEPH GONZALES
Filipinos saving for retirement now have time deposits as another eligible investment option under the Personal Equity and Retirement Account (PERA), the Bangko Sentral ng Pilipinas (BSP) said.
The change adds time deposits to a PERA lineup that already includes unit investment trust funds, stocks, real estate investment trusts and government securities.
Under the latest PERA guidelines issued by the BSP on Aug. 20, banks that meet applicable BSP prudential requirements may offer PERA-eligible time deposits.
Before accepting placements, banks must obtain accreditation from the Bureau of Internal Revenue and enter into an arrangement with an accredited PERA administrator.
The inclusion gives Filipinos another option for retirement savings and may appeal to savers who prefer a familiar savings product with predictable returns and relatively lower investment risk.
“Retirement planning should be simple, accessible, and within reach of every Filipino. By introducing PERA time deposits, we are providing another practical option for individuals who want to build their retirement savings through a product they already understand and trust,” BSP Deputy Governor Lyn Javier said.
Unlike regular time deposits, a PERA time deposit forms part of a contributor’s PERA and may qualify for applicable tax incentives.
PERA time deposits remain bank deposits and are subject to applicable banking regulations and Philippine Deposit Insurance Corporation deposit insurance rules.
The BSP encourages Filipinos to make retirement saving a regular part of their financial planning and to choose PERA products that match their financial goals, investment horizon and risk preferences.