What Is a Time Deposit and How Do You Open One with Maya?

The sheer variety of savings and investment options available in today’s financial landscape opens up myriad opportunities for those new to the concept of growing their wealth. Whether you bank with a traditional bank, a digital bank or neobank, or some other non-traditional financial institution, it’s impossible to deny that the financial industry has been transformed by technology. Banks now offer consumers a wide range of products that were unimaginable just a few decades ago. It’s also entirely possible to manage your savings and investments from your computer or a digital banking app, which makes it simpler and more convenient than ever to stay on top of your finances.

The rapid advancements in the financial sector emphasize the importance of individuals exploring financial products that cater to their current needs and long-term investment goals. Among the available choices, time deposits stand out as a perennial favorite. Known for their stability and reliability, time deposits offer a straightforward way to earn interest on your savings without the risks associated with more volatile types of investment instruments.

In this feature, we’ll walk you through the fundamentals of how time deposits work. We’ll also explore how you can take advantage of Maya Time Deposit Plus, an especially high-value time deposit product from the digital bank PH depositors trust most.

How Do Time Deposits Work?

Time deposits are essentially agreements between you and a bank where you agree to leave a specified amount of money deposited for a predetermined period. In exchange, the bank offers you interest at a rate higher than that of a regular savings account. The duration of these deposits can vary, typically ranging from a few months to several years, depending on your financial goals and the terms your bank offers.

One of the key features of a time deposit is the fixed interest rate. This means that regardless of fluctuations in the market or changes in the bank's interest rates, the interest rate on your deposit remains unchanged for the duration of the term. This predictability is what draws many investors to time deposits, as it provides a secure and stable return on investment. When the term ends, you receive your original deposit plus the accrued interest, which you may roll over into a new time deposit or withdraw based on your financial needs.

Why Invest in a Time Deposit?

Guaranteed Returns

Unlike stocks or mutual funds, where returns can vary, time deposits offer fixed interest rates. This guarantees a predetermined return on your investment, which, in turn, makes it easier to plan your finances with confidence. Whether the market rises or falls, your investment's growth remains unaffected and so does your stable financial foundation.

Safety and Security

Time deposits are one of the safest investment options available. They are typically insured by government insurance schemes up to a certain limit, which means that you know your money will be protected even if the bank faces financial difficulties. This level of security is particularly valuable in times of economic uncertainty.

Flexible Investment Terms

You can choose the term of your time deposit based on your personal financial goals. Whether you need a short-term investment for immediate goals or a long-term investment to build your savings for retirement, time deposits can accommodate your needs. You’ll enjoy enough flexibility to manage your liquidity while still benefiting from higher interest rates offered on longer terms.

Effective Financial Planning Tool

Time deposits can be an integral part of your financial strategy, especially for achieving specific short-term or medium-term financial goals. Locking in your funds for a fixed period allows you to plan for future expenses without the temptation or risk of spending the money prematurely.

What Is Maya Time Deposit Plus?

While setting up a time deposit with any bank is likely to be a relatively simple process, there are many reasons to choose Maya Time Deposit Plus over other alternatives. For one, you have the privilege of maintaining up to five Time Deposit Plus accounts at once, which can earn you interest on deposits of up to PHP 1 million each. We also levy minimal cancellation fees, and your deposits will be insured by the Philippine Deposit Insurance Corporation for amounts of up to PHP 500,000 per depositor.

With Maya Time Deposit Plus, we’re also proud to offer some of the most competitive interest rates available to Pinoy banking customers. Here’s a quick rundown of what you can expect:

  • 3-month term: 5.50% p.a.
  • 6-month term: 6.0% p.a.
  • 12-month term: 5.75% p.a.

Make sure to keep abreast of the most updated interest rates. In addition, one of the biggest perks of investing in Maya Time Deposit Plus is that we offer boosted interest, which is a higher interest rate that you can unlock once you’ve managed to deposit your target amount. Of course, you have the option of either depositing the stated amount right away or building toward it gradually. Keep in mind, however, that reaching your target amount earlier allows you to enjoy higher interest on your deposit for a longer period before your term fully elapses.

How Do I Set Up Maya Time Deposit Plus?

Maya’s commitment to customer convenience is one of the foremost aspects that sets us apart as the best digital bank in the country. If you already have an account with us, setting up Time Deposit Plus is as easy as following these three steps:

  • Tap Time Deposit Plus on your Savings Dashboard.
  • Choose a term (3, 6, or 12 months), then name your account and set a target amount for the time deposit.
  • Once you’ve opened your account, you can deposit as much as you like anytime until you hit your target, or until your target date passes. You can transfer funds to your Time Deposit Plus account from your Maya wallet, your Maya Savings account, or even from other banks. Pro tip: Already reached your target amout before your term matures? You can deposit more to your Time Deposit Plus account to maximize your boosted interest until your target date ends.

It’s clear why time deposits remain a favored choice for those seeking a stable, reliable investment product. Consider how incorporating a Time Deposit Plus account into your financial strategy with Maya could enhance your saving endeavors. We’re proud to offer tailored solutions that cater to both your short-term needs and long-term financial goals, all of which aim to make it simpler to achieve the financial security you desire.

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