EastWest expands deposit product

EastWest Bank expands its term deposit offerings with the launch of EastWest five-year Floating Interest Rate Time Deposit, a long-term deposit instrument with quarterly interest repricing.

Unlike with regular time deposits with fixed interest rate and interest earnings paid at maturity, depositors who place a minimum amount of P100,000 could benefit from rate upswings and quarterly crediting of interest earnings with EastWest’s new TD product.

With EastWest’s new product, interest is repriced quarterly based on the one-month weighted average accepted yield of the term deposit facility (TDF) of the Bangko Sentral ng Pilipinas (BSP).

As such, interest earnings would be higher if the applicable interest rate for the next quarter goes up, and vice versa. If the deposit is maintained to full term, the five-year TD product is exempted from withholding tax.

In case of pre-termination, a new interest rate per quarter would be applied retroactively to the principal amount according to the number of years the account has been maintained, and would be subject to applicable charges.

The product suits long term investors who prefer getting their interest income regularly for the things that they need to spend for now, while keeping their principal intact for future use.

Interest earnings are paid-out quarterly to the depositor’s EastWest checking or savings account so there is regular income stream.