Interest Rate of 20%pa on Peso Time Deposit!I had been enjoying receiving (20/12)%pm on my Peso Time Deposit with Bank of East Asia, since March 2005. That is, until this month, December 2008!That particular Bank was part of theLegacy Financial Group,all 13 of which have now been placed under 'Receivership' by the Monetary Board (MB).What this means is all assets of the Bank are seized whilst they conduct inspections of the Banks records, and all Bank accounts. So we have lost the income from that Bank, and 4 others with that we also deposited with from the Legacy Group.
The good news is that all our Deposits are fully covered by the PDIC. This means if the Bank has been declared 'Closed' by the 'MB', the PDIC are then appointed as 'Liquidators' and will invite Depositors, to service 'claims'.So far only 2 of these 13 x LFG Banks have actually been declared 'Closed'. These being Rural Bank of ParanaqueInc., and Pilipino Rural Bank. Whilst some of the others may also get declared closed, it is not 'automatic' as options such as 'rehabilitation' are normally considered (especially if this is less expensive than paying back the Insured Deposits).
"MANILA, Philippines—The Senate will open an investigation in January into the issue of seven troubled rural banks that early this month either unilaterally declared a bank holiday or were shut down by the central bank for questionable practices.
Before adjourning for a month-long Christmas break on Wednesday, the plenary referred Senate Resolution 812 introduced by Sen. Miriam Defensor-Santiago to the Senate committee on banks, financial institutions and currencies"......
"The seven banks on Senator Santiago’s list are among nine believed to be affiliated with the controversial Legacy group that the BSP closed down and placed under receivership early this week.Not included on the senator’s list are Bank of East Asia in Cebu and First Interstate Bank in Tacloban City in Leyte province."As it is the Christmas break, it will be January before it is announced we can collect Claims Forms for PRB. Those with Deposits under Php100K, with RBPI are able to get claims forms, and schedule for submission, already given by the PDIC. Those with Deposits over Php100K @ RBPI, having to wait until the New Year also.http://www.pdic.gov.ph/index.php?nid1=8&nid2=2&nid=294
Changes to the current RA 3591 as amended (PDIC Charter), will become effective in 2009 also.
http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=3371
One of these is 'doubling' the Maximum Insured Deposit (MID) to Php50,000.00.
PDIC also got the authority to form, establish, organize and operate and engage subsidiaries or corporations whose primary purpose is to operate as bridge bank and/or manage acquired assets of the PDIC.
Bridge banks refer to a temporary bank licensed by the Bangko Sentral ng Pilipinas, established and operated to acquire assets of a failed bank to facilitate its resolution.The measure also specifies that investment products such as bonds, securities, trust accounts and other similar instruments and deposit accounts or transactions that are unfounded, fictitious or fraudulent will not be covered.
Furthermore, deposits that are marketed, solicited, accepted and received in violation of the law or the rules of the Bangko Sentral ng Pilipinas and deposits accounts or transactions deemed emanating from unsafe and unsound banking practices as determined by PDIC will not be covered either.
Here is the actual Senate Bill No. 2964 proposes to amend Republic Act 3591 or the Philippine Deposit Insurance Corp. (PDIC) Act.
http://www.senate.gov.ph/lisdata/96438674!.pdf
THE CORPORATION SHALL NOT PAY DEPOSIT INSURANCE FOR THE FOLLOWING ACCOUNTS OR
TRANSACTIONS, WHETHER DENOMINATED, DOCUMENTED, RECORDED OR BOOKED AS DEPOSIT BY THE BANK:
INVESTMENT PRODUCTS SUCH AS BONDS AND SECURITIES, TRUST ACCOUNTS, AND OTHER SIMILAR INSTRUMENTS;
DEPOSIT ACCOUNTS OR TRANSACTIONS WHICH ARE UNFUNDED, OR THAT ARE FICTITIOUS OR FRAUDULENT;
DEPOSITS THAT ARE MARKETED, SOLICITED,ACCEPTED, RECEIVED, EVIDENCED BY, AND/OR RECORDED, IN VIOLATION OF LAW, OR THE RULES AND REGULATIONS ISSUED BY THE BANGKO SENTRAL NG PILIPINAS(BSP);
DEPOSIT ACCOUNTS OR TRANSACTIONS CONSTITUTING, AND/OR EMANATING FROM, UNSAFE AND UNSOUND BANKING PRACTICE/S, AS DETERMINED BY THE CORPORATION, IN CONSULTATION WITH
THE BSP; AND
DEPOSITS THAT ARE DETERMINED TO BE THE PROCEEDS OF AN UNLAWFUL ACTIVITY AS DEFINED UNDER REPUBLIC ACT 9160, AS AMENDED.
PARAGRAPHS 3 AND 4 ABOVE SHALL IMMEDIATELY AND EXCLUSIVELY APPLY TO DEPOSITS MADE AFTER THE PUBLICATION OF A CEASE AND DESIST ORDER OR A WARNING ISSUED BY THE CORPORATION AGAINST SUCH DEPOSIT TRANSACTIONS.
THE ACTIONS OF THE CORPORATION TAKEN UNDER THIS SECTION SHALL BE FINAL AND EXECUTORY, AND MAY NOT BE RESTRAINED OR SET ASIDE BY THE COURT, EXCEPT ON APPROPRIATE PETITION FOR CERTIORARI ON THE GROUND THAT THE ACTION WAS TAKEN IN EXCESS OF JURISDICTION OR WITH SUCH GRAVE ABUSE OF DISCRETION AS TO AMOUNT TO A LACK OR EXCESS OF JURISDICTION. THE PETITION FOR CERTIORARI MAY ONLY BE FILED WITHIN THIRTY (30) DAYS FROM NOTICE OF DENIAL OF CLAIM FOR DEPOSIT INSURANCE.”
Whilst this sounds a bit 'daunting' - the PDIC being able to select what Bank Products are NOT to be covered by the Insurance, in practice it is just to ensure, the Banks offer Products emanating from sound Banking Practice.
So unless a particular Bank, that you want to place a Peso Time Deposit with, has received a 'Cease & Desist' Order, or a 'Warning' issued by the PDIC against a specific Deposit transaction, such Deposit will still be covered by the PDIC.
Just make sure all transactions are conducted directly with authorised Bank Officers and on Bank Premises.
If the Bank then offers a particular 'Promo', and the PDIC considers such Deposits to be fictitious, fraudulent, or unfunded, or constitute or emanate from unsound banking practice they need to issue said Bank with a WARNING or a Cease & Desist ORDER.
I would ask the Bank to sign a Statement, that they have not received any such Warning or Order to stop offering that particular Deposit Product or 'Promo', before placing such Deposit.
Alternatively contact the Depositors Assitance Bureau (DAB)orDepartment of Consumer Affairs, BSPand ask them if any such Warning/Order issued (this could trigger an investigation and subsequent issuance of such Warning to the Bank, but at least you should know that the product is 'legal' and PDIC covered).
NB: It only applies to Products issued AFTER the Warning issued!
All Deposit products available at the time of placing the Deposit, for which NO Warning, or C&D Order, issued,are covered by the PDIC it would appear.
Rural Banks are perfectly able/capable of offering Peso Time Deposits of 20%pa (or even as high as 33.33%pa?), if they are offering LOANS @ 3% - 5%pm(36 - 60%pa).
They just need to balance/ensure such LOANS, including provision for bad debt, covers such Deposit Interest and overheads/profits for the Bank. If a Bank has voluntarily dropped a High Reward Time Deposit Product, because they are getting 'cash rich', and need to turn off the funds coming in from that product, this is a good sign they are operating to sound Banking Practice, and unlikely to be receiving such Warnings or Notices to stop such products.
When we receive our Deposits from our PDIC 'Claims' (in January 2009 hopefully) and this new Increased PDIC Insured Deposit Limit of Php500,000 per Depositor/Bank is introduced/operational, we will be placing into the few Rural Banks still operating and offering such Peso Time Deposits.
A Family of 3 will then be able to place 3 x Single Accounts up to Php500,000.00 each, as well as Joint Account Insured Deposit 'Shares' up to Php500K. The combined Total, fully PDIC insured, should then be Php3M per Bank for a Family of 3. Persoanlly we will not place Time Deposits up to this Maximum, but leave one Joint Account as a Peso Savings Account that the Interest for the other Deposits, gets paid into. A Standing Order Instruction to transfer to a Commercial bank Account, when Balance gets to say Php250K, being set up, perhaps?
Pilipino Rural Bank, failed to pay Php16,666.67 into my LandBank Account for the Month of November.
This was before any 'Receivership Notice given by the MB. Trouble if they then took a 'Bank Holiday' before confirming they would check into the 'late' payment of Interest, and credit my account accordingly. I am concerned that the PDIC might not pay this Interest if it takes me over the PDIC insured Deposit Limit(which it will with the current limit of Php250,000).This is why I figure it might be advantageous to have a Joint Account for the Interest payments in the same Bank, even if just for the total Interest for say 2 months.
Angel Investors raising funds to finance the Dealership expansion,
were rewarded with excellent Return On Investment*.
I actually put my own money into this Investment since having performed my own 'due diligence' into this company 'V8 Motorcycle & Parts Dealer' and researched into their Business Plan it certainly looked like it was capable of creating a lot of money from the import of Motorcycles direct from one of the top Motorcycle Manufacturers in China - 'Zongshen'. Buying direct, in large volumes, brings the per unit cost way down.
Yes there are Risks associated with High Rewards, and this particular Investment is no exception, and as such may not be for everyone. Having talked to the CLS Group, that ''V8 Motorcycle & Parts Dealer' is part of, we learned that they were willing to consider a Group of 'Angel Investors' pooling their funds, to leverage off the higher 'Return' of the Group total investment.
The documents comprised:-
Official Receipt
Memorandum Of Agreement (MOA)
'Certificate' of Dealership
Bank Guarantee
That's right, they gave us a Bank Guarantee, on those 13 x PDC's for the 1 Year Term(or 25 x PDC's for the 2 Year Term).
Whilst you get signed up as a 'Dealer', the MOA, says that 'V8' will take care of the actual running of the Dealership Business, and everything connected with it. That is why it better to view it as being an an 'Angel Investor', rather than becoming a 'Motorcycle Dealer'. You get a Dealership Certificate, but that does not entitle you to buy such Motorcycles @ Dealer Prices. However, showing such 'Dealership Certificate' in the co-located V8 Appliances Showroom and you may well discover they give you 25% off the List Price, be it a Television, and Air-conditioner, or whatever they sell, that you want to buy, with such Dealers Discount.
In June 2005, the first Piaggio engine were made in Zongshen Industrial Park, and the first ZIP motorcycle jointly made by Zongshen and Piaggio were put into market Up to 2006, some 60,000 units of ZIP scooters were sold to Europe.
From 1992 to 2006, some 60,000ZIP scooters sold.
How about 'Harley-Davidson'also Whilst the image of "I ride a Zongshen" will never be the same as "I ride a Harley Davidson", the fact that Harley Davidson have signed this 'Co-operation Memorandum', with the Zongshen Industrial Group, says a lot about their company, to even be considered,the way I read this?
ItalyPiaggio and USHarley•Davidson are the top leaders in the motorcycle industry all over the world. Their technology on scooter and chopper manufacturing are definitely superior.On June 9th,2004, Zongshen Industrial Group and US Harley•Davidson signed cooperation memorandum, this is another classic cooperation between Zongshen and occident top motorcycle manufacturer, a big step forward in leading technology and customer globalization field.
ZongshenManta 110, Chase 125 andLoadstar 150
Zongshen Manta 110
Zongshen Chase 125
Zongshen Loadstar 150
The Zongshen Manta 110 is Zongshen's offering in the step-thru or underbone commuter motorcycle market currently dominated by the Honda Wave 100. Immediately, you will notice that the Manta already has an advantage over the market leader – its 110cc motor has a bigger displacement than the Wave’s 100cc motor and produces more power.Another advantage the Manta has is that it is equipped with a front disc brake unlike the base Wave 100 which has a drum brake in front. But like the popular Wave, the Zongshen Manta 110 is equipped with an automatic clutch and a 4-speed rotary manual transmission, so riding the bike is as easy and as convenient. Power is transferred to the 17-inch wire spoke rear wheel via chain drive while a rear drum reins in the speed. A telescopic front fork and dual shocks at the rear do their parts to smoothen the road undulations. The Manta 110, which retails forP39,000 is selling very well indeed.
The new design is bolder than the ’06 version and makes the ’07 Chase 125 look more expensive and more apt for the Philippine market. Leaving well enough alone, Toro Motors also left the price of the ’07 Chase 125 atP42,000, which represents a bargain, considering the bike’s features. And as if to follow our lead, the company came out with a Chase 125 variant (B-grade) by changing the 2-stroke-styled expansion chamber-equipped exhaust system with a more appropriate megaphone-styled muffler set-up and then priced it at P44,000. Both Zongshen Chase 125 variants are available in Red or Blue and will be available at authorized Zongshen dealers by the time you read this.
The Loadstar 150 is the company’s model for the commercial market, or quite specifically the tricycle or taxi segment. This air-cooled 150cc single-cylinder standard motorcycle is quite popular in the provinces, especially in areas where high ground clearance, robust suspension and engines that produce a lot of torque are needed. The Loadstar’s popular market acceptance is partly due to its affordable price of P47,000. For that amount, buyers of the Zongshen Loadstar 150 get the aforementioned 150cc motor, a robust steel cradle frame,hefty front forks, four rear heavy-duty shock absorbers, a frame guard/extension to attach the side car; and a built-in front accessory light bar .
The High Rewards offered to those Angel Investors, have closed, as indeed the 1 Year Term.
However there is a NEW 2 Year Term Dealership Plan for just Php500K min. investment.
The Reward may not be as generous, as that initial 2 Year Term, requiring Php2M min. investment, but it is still very good - contact me for details.
Special 'Promo'
for limited time period from certain
Philippine Rural Banks(with PDIC cover)
I personally did not want/need an iPhone3G(as I had already bought a Nokia N95 8GB),
so I took up the option of receiving Php25,000.00* cash alternative instead!
NB: This offer of the iPhone or Php25K cash alternative, requires Php250K min. Deposit, otherwise just the 10%pa Interest(but this in itself is very good if you compare with most, if not all, other Banks).
I was even more amazed when the Bank also 'shouldered' the Documentary Stamp Tax as well, saving me another Php1,250.00.
We were told this 10%pa Interest, would be paid on Maturity.
On a Php250K Deposit that 10%pa gives Php25K, but as the 'Term' is only 90 Days (3 months!), it will be 1/4 of that, ie, Php6,250.00. Then there is 20% Witholding Tax, that will be deducted, so expect the Nett Interest you will receive to be Php5,000.00**
The Rural Bank that I deposited Php250K with, actually credited the Php5K Nett Interest to my Banks ATM Account within about a week of placing the Deposit. The following week, the Php25K cash alternative to the iPhone, was also credited to my Account).
Since this is a genuine Bank Time Deposit Product, my Php250K deposit is protected by the Philippine Deposit Insurance Corporation.Currently this PDIC cover is limited to Php250K max, but there is a 'Bill' currently in the House, to increase the Deposit Insurance to Php500,000.00.
Since this increased PDIC limit, has not yet been passed, one needs to go to another Bank, offering such promo, to stay 'protected'.
My wife thought it was so good, she took out a Php250K Deposit to get this same Promo at the Bank as I did. If we had more funds, we could also place another Php250K into a Joint Account together. since this is 'split' as Php125K insured deposit 'share', each, we could even place another Php250K into a 2nd Joint Account, at that same Bank. But with 7 x Rural Banks, currently offering this particular limited time 'Promo', no real need to do so necessarily?
This really is an amazing offer for such short Term Peso Time Deposit
Factoring in that Php25K* cash alternative gives this calculation:-
ROI = (Total Return - Investment)/Investment = (250 + 5** +25* - 250)/250 = 3/25 = 0.12 ROI
APR = ROI/Term (Yrs) = 0.12/0.25 =48%paAPR
This includes the 20% Witholding Tax deducted, but did not add the 0.5% DST, as the particular Rural Bank we deposited with, shouldered the cost of that (some Banks may ask you to pay the Php1,250 DST).
Sorry we were asked not to give out the name of the Rural Bank we deposited with, in public, or the names/locations of those other 6 x Rural Banks, also offering this current Promo.
I have supplied this information however, to the Members of my Private Wiki Group
When in the UK for my 50th Bithday (3 years ago) I bought a Sony ErricssonT610 from Virgin mobile.
This wasunder their "Pay as you Go" - great price and included 'Airtime'. If you also add extra load of certain amount (£10?), they will 'unlock it' for FREE.
For Example - here is one of the Virgin Mobile UK current Pay as you GoSpecial Offers:-
WAS £49.99, NOW £19.99
When you buy £10 airtime
PACKAGE PRICE
Offer price: £29.99
If considering something like this, this, make sure you buy a make/model actually supported where you will be using it(Philippines in our case). Clearly we were using the phone we purchased in the UK, during our 5 week stay, then wanted to use it in the Philippines after.
Sony Ericssonoffers good support and offer the T610 Model, butNOKIAis#1,in the Philippines.My Filipina wife went for 'style' over functionality, price (or 'Support' back in the Philippines). She bough someMotorola 'Razor', but not aModel sold/supportedin Cebu, Philippines.
So when it went 'faulty', 2 years after purchase,it was - "throw it away",because it can't be repaired.
Checking in the UK, last year during a Visit, Virgin were 'shocked' that anyone would contemplate 'repair'(obviously with high labour costs in UK, it is cheaper to throw it away and buy a new one).Sometimes they have trade-in Promo, where you take along your old phone(don't think it has to be working, but must have the Charger) and they offer Discount on a New Phone.
My Sony Ericsson T610 still works just fine, except with a 'Touch' SIM, you don't get Web Browsing, and could never get e-mail to work.
I could have just bought a GlobeSIM, but I was considering an 'upgrade to my Phone.
One that offered high speed Data with WLAN - WiFi, HSPD (3.5G), and EDGE, in addition to GPRS.
The pictures taken with my T610 were a big dissapointment, so a decent camera (with a Flash) on the Phone,would be useful (if I didn't take along my Olympus MJU).
Nokia Asia & Junrex had a 'Sales Promo' exhibition in SM Mall,(about 6 months ago).
Not only were the prices of Nokia phones being offered at good discount, but 6 Months Free Credit, purchased with Credit Card, on some models.
It was the NokiaN95 8GB that caught my attention!
I had dismissed the N95 phone when it first came out,as being far too expensive, and more features than I needed.This was the Newer Model N95 with additional 8Gb - costing US$750 - but here it was being offered @ Php29,000 (US$675?).
I didn't buy it - too expensive for me.
In the following couple of weeks, I read up some reviews on the NokiaN95 8GB. Many were saying about it's improved Battery life, the increased Memory, and the internal GPS.
I was considering buying a GPS, unit for creating Maps of Cebu, Philippines (since those offered by Google Earth etc are inadequate and inacurate). I wondered if the built in GPS on the N95 was up to the job?
I bought a Nokia N95 8GB a few days later in JUNREX, Ayala. They were still offering 6 Months Interest Free Credit, and the PRICE had dropped to just over Php26,000, so only Php4,400 a month, or there abouts x 6
(US$600 Total or US$100pm x 6 months).
It was the 6 Months Interest Free Credit that clinched it.
Well that and the fact it also had GPS and the Carl Zeiss Lens with 5 Mega Pixel Camera, with an LED Flash (one can GEO Tag your Photos with GPS position data information), It can do also record 30fps VGA Video MP4.
It uses the Symbian OS (S60 V3 Feature Pack 1)and Java.There are also a number of 'Python' applications - some make use of the built in '3 axis sensor' and 'accelerometer'.
The latest Nokia Firmware upgrade (V.20), now incorporates some of these applications, like 'Auto Rotate' that automatically changes from 'portrait' to 'landscape', as you rotate your phone.
Another 'App' automatically turns your phone into 'silent mode' when you flip the phone upside down, and reverts when the correct way up.
The Nokia N95 has a Stereo Audio and Video Out, so you can hook up to large screen TV.
Some will like this to play games (N-Gage) and Java (with the phone responding to'Tilt left' and 'Tilt right for 'steering' and 'Tilt down' for 'accelerate', and 'Tilt up' for braking). Driving games using the the angle/tilt of the phone instead of trying to manipulate several tiny buttons at the same time, will make it a lot easier and enjoyable, especially with big TV display
Since the Nokia N95 comes with 'QuickOffice', you can displayWord, Excel, PowerPoint, Adobe Acrobat .pdf Documents, on the TV.
Or a slide show of your photos, of a DVD quality Movie you created.
There are some real FUN apps out there as well. as well as some more practical ones.
Like having a built in 'Spirit Level' (pyPoziomica) that settles the argument if the table is level or not?
Fancy a no-carb beer - amaze you friends as you down many of your favorite Beers, one after another !
(Virtual Beer by pyPiwo). You dont get drunk, or put on weight, no matter how many you 'down'.
Amaze the Kids with the 'Coin Box' (pyMoneta). A recognizable coin slides around the screen when tipped. and then when shaken, down, the coin drops out, into the Kids hand!
I was 'Engineering Manager - Asia Pacific',based in Hong Kong. But in 2000 the recession in the Telecom Industry, put paid to that. The American company closed their Asia office to save costs.
My boss formed a start-up company, with his ex-boss, but as the recession tightened, things did not improve, but got worse in fact!
In 2001, I relocated to Cebu, Philippines, with a Filipina, whom I met in 1998, whilst in Hong Kong.
I liked it so much, I decided to retire early and enjoy life, here in 'Paradise', instead of working until I was 65.
In this Blog, I will tell you how I achieved this at age 50, in case you might like to do the same?
Interest Rate of 20%pa on Peso Time Deposit!
I had been enjoying receiving (20/12)%pm on my Peso Time Deposit with Bank of East Asia, since March 2005. That is, until this month, December 2008!
That particular Bank was part of the Legacy Financial Group, all 13 of which have now been placed under 'Receivership' by the Monetary Board (MB).
What this means is all assets of the Bank are seized whilst they conduct inspections of the Banks records, and all Bank accounts. So we have lost the income from that Bank, and 4 others with that we also deposited with from the Legacy Group.
The good news is that all our Deposits are fully covered by the PDIC. This means if the Bank has been declared 'Closed' by the 'MB', the PDIC are then appointed as 'Liquidators' and will invite Depositors, to service 'claims'.
So far only 2 of these 13 x LFG Banks have actually been declared 'Closed'. These being Rural Bank of Paranaque Inc., and Pilipino Rural Bank. Whilst some of the others may also get declared closed, it is not 'automatic' as options such as 'rehabilitation' are normally considered (especially if this is less expensive than paying back the Insured Deposits).
Not i
ncluded on the senator’s list are Bank of East Asia in Cebu and First Interstate Bank in Tacloban City in Leyte province."
As it is the Christmas break, it will be January before it is announced we can collect Claims Forms for PRB. Those with Deposits under Php100K, with RBPI are able to get claims forms, and schedule for submission, already given by the PDIC. Those with Deposits over Php100K @ RBPI, having to wait until the New Year also.
http://www.pdic.gov.ph/index.php?nid1=8&nid2=2&nid=294
Changes to the current RA 3591 as amended (PDIC Charter), will become effective in 2009 also.
http://www.businessmirror.com.ph/index.php?option=com_content&view=article&id=3371
One of these is 'doubling' the Maximum Insured Deposit (MID) to Php50,000.00.
PDIC also got the authority to form, establish, organize and operate and engage subsidiaries or corporations whose primary purpose is to operate as bridge bank and/or manage acquired assets of the PDIC.
