THE Bangko Sentral ng Pilipinas (BSP) has added time deposits to the investment products eligible under the Personal Equity and Retirement Account (Pera), giving Filipinos another option for building retirement savings.
Time deposits join the growing list of Pera-eligible financial products, including unit investment trust funds, stocks, real estate investment trusts and government securities.
Under the latest Pera guidelines issued Aug. 20, banks that meet applicable BSP prudential requirements may offer Pera-eligible time deposits. Banks must also secure accreditation from the Bureau of Internal Revenue and enter into an arrangement with an accredited Pera administrator before accepting placements.
The inclusion of time deposits could appeal to savers who prefer familiar products with predictable returns and relatively lower investment risk.
“Retirement planning should be simple, accessible, and within reach of every Filipino. By introducing PERA time deposits, we are providing another practical option for individuals who want to build their retirement savings through a product they already understand and trust,” BSP Deputy Governor Lyn I. Javier said.
Unlike regular time deposits, a Pera time deposit forms part of a contributor’s Pera and may qualify for applicable tax incentives.
Pera time deposits remain bank deposits and are subject to banking regulations and Philippine Deposit Insurance Corp. deposit insurance rules.
The BSP encouraged Filipinos to make retirement savings a regular part of their financial planning and choose Pera products that match their financial goals, investment horizon, and risk preferences.
Pera is the country’s voluntary retirement savings program that allows Filipinos to build retirement funds while receiving government tax incentives. PR
