Why you should invest BDO Easy Redemption Plan? Check out this UITF review about BDO ERP. I also discussed the requirements to open this UITF account. Learn if this UITF is right for you. People liked BDO Easy Investment Plan (EIP) and many readers have requested I make a review about BDO ERP as well so here it goes.
What is BDO Easy Redemption Plan
BDO ERP is a type of UITF (Unit Investment Trust Fund) wherein you are allowed to automatically receive regular cash pay-outs from your UITF.
The available UITF for ERP as of now is BDO Peso Money Market Fund.
Example, you have 1 million BDO Peso Money Market Fund and you want to use this trust fund to give monthly allowance for your son but you don’t want to withdraw or redeem all of your units in your UITF. You want your remaining UITF to be earning at the same time. If you want something like this, then BDO ERP is for you.
The minimum cash out for BDO Easy Redemption Plan is P1,000.
So if you have 1 million for example and you want to redeem 20,000 monthly (every 10th of the month) from your Peso Money Market Fund UITF and you want this 20,000 to be credited to your chosen savings account, you can do this by opening BDO Easy Redemption Plan.
I know you are wondering what will happen if there is no more cash equivalent remaining in your UITF or what will happen when the remaining amount in your ERP falls below the designated pay out? BDO will automatically unsubscribe you for the ERP. If there are any proceeds remaining on your account, the units will be redeemed and will be credited back to your assigned current or savings account.
BDO Easy Redemption Plan Requirements
- You must have an outstanding BDO Peso Money Market Fund
- Your COP from your BDO Peso Money Market Fund
- Accomplish all forms required at your BDO branch (ERP Enrollment Form, Change/Request, ERP joining Terms and Conditions)
- Enrollment fee of P500
How to Open BDO Easy Redemption Plan
Prepare all the necessary requirements then fill out the required forms as mentioned above. Choose where you would link your BDO ERP account (ie: BDO CA/SA account). Select your pay-out amount and the schedule of pay-out (ie: one or twice a month, 5th, 10th, 15th, 20th,25th, 30th).
Why should you open BDO Easy Redemption Plan
- You want flexible cash out from your existing UITF
- You want automatic redemption regularly following your own schedule
- You do not want to redeem all your units from your investment
- You want to retain some of your units in order to earn some more
If you have questions, feel free to leave them in the comments.