How to Open Retail Treasury Bonds in the Philippines? RTBs (Retail Treasury Bonds) are one of the excellent investments to earn fixed income. They are also great to invest because they are virtually known as risk-free investments.
Do you have huge savings just sitting there on your bank account? Are you an OFW who saved big cash sleeping on your passbook? Perhaps, you have a business that generates millions of money and you want to invest it?
This post is a guide how I opened RTB account in the Philippines. Many readers also requested for this post so I’m doing it here. If you are interested to open retail treasury bonds, I lay out the step by step guides below.
The minimum fund to invest in Retail Treasury Bonds is P5,000. If you have money more than that and you plan on keeping it for 3 years or more, then invest them in RTBs to earn fixed income.
Before you open Retail Treasury Bonds, I recommend you read the following posts first to get to know what you are investing with. Once you read them, you can proceed with the guide below.
- Guides How to Invest Retail Treasury Bonds in the Philippines
- I Invested 1 Million in RTBs, This is What Happened
- Latest RTB Offering 2020
Investing Retail Treasury Bonds is like a shopping on sale. Many investors especially those who are aware of RTB do not want to miss such opportunities. High net worth investors always make their reservations for RTB. RTB are like flight promos, they don’t come very often so you better catch them when they are available.
How to Open RTB in the Philippines?
- Find out if the Bureau of Treasury is offering Retail Treasury Bonds
- Take notes of the Details of Retail Treasury Bonds Offer
- Go to your RTB issuing bank and make your RTB investment
- Choose your Certificate Delivery
- Receive your Fixed Income
Step-by-Step Guides on How to Open RTB in the Philippines:
Step 1. Find out if the Bureau of Treasury is offering Retail Treasury Bonds
There are 3 ways to do this:
- By going to this link: Retail Treasury Bonds Offering in the Philippines 2020.
- By visiting their official website. The Bureau of Treasury is the one that administers and issues these types of investments. They always post upcoming offering for RTBs.
- By asking your commercial bank. Majority of commercial banks in the Philippines are agents of Retail Treasury Bonds. You can ask a Trust representative from a bank or any staff from their Asset Management Group if there is an upcoming RTB offering. Better yet ask the manager. You know getting close with a bank manager or being friends with them would mean you get updates or first dibs about investments opportunities like RTBs.
Step 2. Take notes of the Details of Retail Treasury Bonds Offer
Date of Issue of the Bond
You must remember the issue dates and re-issue dates because opening RTB involves a lot of papers and documents to sign. It also requires your bank account or settlement account. When I opened my RTB, I had to transfer my money from one bank to another because I am opening in another bank, so I had to use a Manager’s Check instead of withdrawing huge cash. Some circumstances happen so you have to reserve your RTB earlier and settle the money and everything you need.
Maturity of the Retail Treasury Bonds
Retail Treasury Bonds have a tenor of 3, 5, 7, 10, 15, 20, 25 years. Typically, the longer the term, the higher the interest rates of the investment being offered. You will usually get the whole principal amount of your investment when your bond matures. Furthermore, you are free to re-invest it for another RTB offer.
Interest Rate of the RTB
Unlike stocks, UITF and Mutual Funds, RTB have lower rates because they also have lower risk. The recent rate of retail treasury bonds offered was 4.875% per annum. That means, you will get 117,000 income guaranteed for 3 years if you invested 1 million. The higher you invest, the more fixed income you will earn. RTB with longer maturity dates offer higher rates.
Step 3. Go to your RTB issuing bank and make your RTB investment
Bring 2 valid IDs, your bank account information (example: passbook, atm, check book, etc.), your TIN (Tax Identification Number) and your money to fund your RTBs. Fill out the documents you need to sign. Double check everything before you sign them.
4. Choose Your Certificate Delivery
You can choose how will you receive your RTB certificate (via post, pick up or email).
5. Receive Your Fixed Income
Retail Treasury Bonds give out fixed income. You will receive them every quarter until the fund matures. The principal investment will be paid on the maturity date.
Feel free to ask questions in the comments below. Happy investing!