Long Term Deposit

Long Term Time Deposit (LTD) is a special type of term deposit, available to eligible depositors (both individuals & corporations).

FEATURES:

Individual Corporation
Minimum Amount 50,000.00 50,000.00
Minimum Terms One (1) year One (1) year
Five (5) years & one (1) day Five (5) years & one (1) day
Interest Rate Based on negotiated rate at the time of placement
Manner of Interest Payment At maturity, based on negotiated term at the time of placement interest payment via credit to clients account or via Managers Check.
Withdrawal Surrender of the original CTD duly endorsed by the depositor/s
Dormancy Two (2) years after maturity

CHARGES:

Individual Corporation
Below Minimum ADB for two (2) consecutive months n/a n/a
Withholding Tax 20% of the total interest earned
Documentary Stamp P1.00 for every P 200.00

PRE-TERMINATION CHARGES
Withholding Tax

Holding Period Account Type
Individuals & Tax-exempt Corporations Corporations (w/o tax exemption)
5 years & 1 day 0% 20%
4 years to less than 5 years 5%
3 years to less than 4 years 12%
Less than 3 years 20%

Tax-exempt corporations must submit a valid, current, and subsisting Tax Exemption Certificate or ruling from BIR as per exiting administrative issuances and any issuance that maybe issued from time to time before payment of related income. Revenue Memorandum Circular 8-2014 dated February 6, 2014.

Pre-termination Date Penalty Rate
Within the first 29 days 100%
Within the first half of the term but not less than 30 days 75%
Within the second half of the term 50%

REQUIREMENTS:

  1. Individual
    • Latest “1 x 1 ID” Picture
    • Two (2) Valid IDs
    • Proof of Billing
  2. Sole Proprietorship
    • Certificate of Registration of Business/Trade Name with DTI
    • Affidavit of Application of Business Name
    • Two (2) Valid IDs of the Proprietor
    • Proof of Billing
  3. Partnership
    • Articles of Partnership with SEC Certificate of Registration
    • By-Laws with SEC Certificate of Filing
    • Affidavit of Application of Business Name
    • Notarized Partnership Resolution
    • Two (2) Valid IDs of the Signatory/ies of the account
  4. Corporation
    • Articles of Incorporation with SEC Certificate of Registration
    • By-Laws with SEC Certificate of Filing
    • Notarized Board Resolution or Notarized Secretary’s Certificate indicating the following:
      1. USB as the Depository Bank
      2. The type of account to be opened
      3. The name of the authorized signatories to the account
      4. The signature combination/s
    • Two (2) Valid IDs of the signatory/ies of the account