Saturday, November 8, 2008

Free iPhone 3G with 90 Day Time Deposit (10%pa)

Want a FREE
iPhone 3G

as well as

10%pa Interest

on a
90 Day Time Deposit?
Special 'Promo'

for limited time period from certain
Philippine Rural Banks
(with PDIC cover)

I personally did not want/need an iPhone 3G (as I had already bought a Nokia N95 8GB),
so I took up the option of receiving Php25,000.00* cash alternative instead!

NB: This offer of the iPhone or Php25K cash alternative, requires Php250K min. Deposit, otherwise just the 10%pa Interest (but this in itself is very good if you compare with most, if not all, other Banks).

I was even more amazed when the Bank also 'shouldered' the Documentary Stamp Tax as well, saving me another Php1,250.00.

We were told this 10%pa Interest, would be paid on Maturity.

On a Php250K Deposit that 10%pa gives Php25K, but as the 'Term' is only 90 Days (3 months!), it will be 1/4 of that, ie, Php6,250.00. Then there is 20% Witholding Tax, that will be deducted, so expect the Nett Interest you will receive to be Php5,000.00**

The Rural Bank that I deposited Php250K with, actually credited the Php5K Nett Interest to my Banks ATM Account within about a week of placing the Deposit. The following week, the Php25K cash alternative to the iPhone, was also credited to my Account).

Since this is a genuine Bank Time Deposit Product, my Php250K deposit is protected by the Philippine Deposit Insurance Corporation.Currently this PDIC cover is limited to Php250K max, but there is a 'Bill' currently in the House, to increase the Deposit Insurance to Php500,000.00.

Since this increased PDIC limit, has not yet been passed, one needs to go to another Bank, offering such promo, to stay 'protected'.

My wife thought it was so good, she took out a Php250K Deposit to get this same Promo at the Bank as I did. If we had more funds, we could also place another Php250K into a Joint Account together. since this is 'split' as Php125K insured deposit 'share', each, we could even place another Php250K into a 2nd Joint Account, at that same Bank. But with 7 x Rural Banks, currently offering this particular limited time 'Promo', no real need to do so necessarily?

This really is an amazing offer for such short Term Peso Time Deposit

Factoring in that Php25K* cash alternative gives this calculation:-

ROI = (Total Return - Investment)/Investment = (250 + 5** +25* - 250)/250 = 3/25 = 0.12 ROI
APR = ROI/Term (Yrs) = 0.12/0.25 = 48%pa APR

This includes the 20% Witholding Tax deducted, but did not add the 0.5% DST, as the particular Rural Bank we deposited with, shouldered the cost of that (some Banks may ask you to pay the Php1,250 DST).

Sorry we were asked not to give out the name of the Rural Bank we deposited with, in public, or the names/locations of those other 6 x Rural Banks, also offering this current Promo.

I have supplied this information however, to the Members of my Private Wiki Group

You need to be sent an Invite to Join this Wiki Group however.

To get one of those, you need to fill in an Application Form