How to Open Retail Treasury Bonds in the Philippines in 2021

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 has saved big cash sleeping on your passbook? Perhaps, you have a business that generates millions of money and you want to start an investment?

This post is a guide how we opened Retail Treasury Bonds account in the Philippines. Many readers also requested for this post so we’re sharing it here. If you are interested to open retail treasury bonds, we lay out the step-by-step guide 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 RTB to earn fixed income.

Before you open Retail Treasury Bonds, we 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 guides below.

how to open retail treasury bonds philippines

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 (Step-by-step Guide in 2021)

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 in 2021.
  • By visiting the Bureau of Treasury 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 a Retail Treasury Bond 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 for funding.

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 RTB. Fill out the documents you need to sign. Double check everything before you sign them.

Step 4: Choose Your Certificate Delivery

You can choose how will you receive your RTB certificate (via post, pick up or email). Select the method of delivery that is the most convenient for your situation.

Step 5: Receive Your Fixed Income from RTB

Retail Treasury Bonds reward fixed income. You will receive them every quarter until your RTB investment matures. The principal investment will be paid on the maturity date.

Feel free to ask questions in the comments below. Happy investing!

Disclaimer: This article is for information purposes only and should not be considered as a professional advice. Every investor must evaluate his risk profile, financial status, and objectives before making an investment. All investments have risks. Risk only the capital you’re not afraid to lose. Always do your own research before investing.

About Fehl Dungo

Licensed Career Service Professional, tech investor, founder of Philpad, and published author of a poetry book at Barnes&Noble.

7 thoughts on “How to Open Retail Treasury Bonds in the Philippines in 2021”

  1. Hi ..just want to asked how to invest in RTB in Philippines because I’m here in other country as ofw..thanks

    Reply
    • Hi 🙂 Depends on the RTB offer. It’s usually yearly but the payment of income is usually given to the investor every quarter (every 3 months). For example, I invested in 3-year RTB offering. You don’t need to wait for 3 years to get the income. The total income will be computed and will be distributed every quarter.

      Reply
  2. can I invest in RTB even im outside the Philippines and I have account in government bank. I mean can I send someone to trust in behalf of me to invest using my name where I have Bank account in Government bank?

    Reply

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