There are several options for how to make your money grow and reduce the impact of inflation. One of them is to invest in bonds.
- A. WHAT IS A BOND?
Bonds are debt instruments issued by the government or the corporate sector to raise capital to fund projects.
- B. WHAT IS A RETAIL TREASURY BOND?
Retail Treasury Bonds or RTBs are medium- to long-term debt securities issued by the Republic of the Philippines through the Bureau of Treasury [BTr].
It’s called retail because this saving programme is accessible to individuals and institutions for an affordable amount until the 17th of February 2023.
RTB29 is a fixed-income security that pays a fixed quarterly interest rate with a promise to return the principal [the amount you invested] on the maturity date.
See the details below.
- C. WHO CAN INVEST?
Any individual or institution with excess cash of P5,000.00 or more and an investment horizon of 5.5 years.
- D. WHERE CAN YOU INVEST?
Individuals and institutional investors can purchase RTBs through:
- 1) Bureau of the Treasury’s Online Ordering Facility https://www.treasury.gov.ph/rt...
- 2) Bonds.PH Mobile Application https://bonds.ph/
- 3) Overseas Filipino Bank (“OFBank”) Mobile Banking Application, Landbank of the Philippines (“LBP”) Mobile Banking Application (“LBP MBA”)
- 4) Over-the-counter through any of the Selling Agents. See the image of the selling agents below.
All mobile applications are downloadable for free via Google Play or the App Store.
- E. WHAT ARE THE RISKS IN INVESTING IN RTBs?
The RTBs have low credit risk because they are the unconditional obligation of the Republic of the Philippines to return your principal and interest. Also, the yield is assured if the investor holds the bond until maturity, otherwise, it will be subject to interest rate risk depending on the prevailing market rate when the RTBs are sold in the secondary market.