Lawrence Agcaoili (The Philippine Star) - September 5, 2019 - 12:00am MANILA, Philippines Term deposits
fetched mixed results as banks swarmed yesterday's auction in anticipation of additional rate cuts and lowering of the level of deposits banks are required to keep with the Bangko Sentral ng Pilipinas (BSP).
Bids for both six-day term deposits
and 13-day term deposits
were lower on Thursday, reversing the surge seen in the previous weeks following the BSP's cut in the banks' reserve requirement ratio (RRR).
The operation offered seven-day term deposits
with the rate set equal to the sum of the interest rate paid on excess reserves plus a fixed spread of 1 basis point.
How do Recurring Term Deposit
(RTD) benefit clients?
"Escalator" is a two-year fixed term deposit
scheme for individuals, offering a competitive yield, but at the same time providing flexibility for depositors to terminate the deposit at the end of each quarter, should a personal need arise.
Similarly, for the term deposits
, the bank has paid 4.5% - 9.8% profit depending on maturity of the accounts that ranged from three months, six months, one year, two years, three years, four years and five years.
The yield on the seven-day term deposit
facility rose to 4.8291 percent from the previous week's 4.7442 percent.
Emirates Islamic, one of the leading Islamic financial institutions in the UAE, announced increased profit rates of up to 2.35% on its Investment Term Deposits
. After a strong financial quarter, the bank aims to share its profits with its customers.
The term deposit
auction facility (TDF) was slightly oversubscribed with tenders reaching P102.99 billion versus the volume of P100 billion.
These operations are aimed at ensuring the operational readiness of the TDF and providing eligible institutions with an opportunity to maintain familiarity with term deposit
The BSP's term deposit
facility (TDF) on Wednesday surged with demand from banks, despite already significantly higher volume offered during the week.
As such, the weekly term deposit
facility (TDF) auction of the Bangko Sentral ng Pilipinas was undersubscribed for the second week in a row.