A long-term deposit instrument with quarterly interest repricing. Unlike with regular time deposits with fixed interest rate and interest earnings paid at maturity, depositors could benefit from rate upswings and quarterly crediting of interest earnings with EastWest’s new TD product. The product suits long term investors who prefer getting their interest income regularly for the things that they need to spend for now, while keeping their principal intact for future use. Interest earnings are paid-out quarterly to the depositor’s EastWest checking or savings account so there is regular income stream. A P5-million placement, for example, will be paid upwards of P30,000 in quarterly interest earnings at current rates, which the depositor can already enjoy on the first quarter of the five-year term.
A depositor parking funds in a plain vanilla time deposit account will earn a fixed rate throughout the duration of the term. With EastWest 5-Year Floating Interest Rate Time Deposit, interest is repriced quarterly based on the one-month weighted average accepted yield of the Term Deposit Auction Facility of the Bangko Sentral ng Pilipinas; as such, interest earnings will be higher if the applicable interest rate for the next quarter goes up, and vice versa. And if the deposit is maintained to full term, this 5-Year TD product is exempted from withholding tax. In case of pre-termination, a new interest rate per quarter will be applied retroactively to the principal amount according to the number of years the account has been maintained, and will be subject to applicable charges.