Group Filipino Community in UAEStarted by buhawe on 24.12.2018
Discussions in this group
What is a Premyo Bond?
A Premyo Bond is a type of investment product issued by the Philippine Government. It promises to pay interest quarterly, return the principal amount on maturity date, and a chance to win prizes in the quarterly raffle. A bond holder gets 1 raffle entry for every PHP 500 investment.
Are Premyo Bonds risky?
Investing in Premyo Bonds is practically risk free since it is guaranteed by the Philippine Government.When you invest in any government bond, you can rest assured that you will get your principal and interests in a timely manner.
However, government bonds still pose some risks like inflation risk and opportunity cost.Inflation risk is the risk that an investment will not grow fast enough to offset the loss in purchasing power, while opportunity cost risk is the risk of missing a chance to earn a higher return by investing in a particular security.
Make sure that you understand the product and all the risks involved before investing, and determine independently that the product is suitable for you.
How do I avail Premyo Bonds?
You may purchase Premyo Bonds over the counter or online.
Over the counter:
To buy over the counter, you may go to any accredited selling agent or bank and fill out the following forms:
Risk Disclosure for Fixed Income Securities
Special Power of Attorney
Letter of Instruction for PHP fixed income securities
Client Suitability Questionnaire
You may invest online if you have an account with any of the accredited online settlement bank.You can use your FirstMetroSec account to buy Premyo Bonds online.Simply follow these steps to invest online thru us:
Accomplish the online form
Select Metrobank/FirstMetroSec as your settlement bank
After clicking continue, login using your FirstMetroSec username and password
No physical forms. No branch visits. No personal appearance. It’s that easy.
How do I pay for Premyo Bonds?
If you invest online through FirstMetroSec, the cost will be deducted from your buying power. Please ensure that you have enough buying power before placing the order.
Where do I get the interest payments?
If you invest online through FirstMetroSec, your interest payments will be added to your buying power.
How often is interest paid?
Interest is paid quarterly.
When do I get my principal back?
The principal will be paid back on the maturity date. This will be credited to your buying power.
Can I pre-terminate the Premyo Bonds?
No. Pre-termination is not allowed for Premyo Bonds.
Can I trade/sell the Premyo Bonds?
No. Premyo Bonds are to be held until maturity.
Can I transfer the ownership of Premyo Bonds?
No. Premyo Bonds are non-transferrable.
Refer to the FAQs from the Bureau of Treasury: https://www.treasury.gov.ph/wp-content/uploads/2019/11/FAQs-Premyo-Bonds-Online-vF.pdf
RichQueen on 27.06.2019 at 15:03
I am looking into opening a trading account in the Philippines. I've heard so much about Col Financial. But I wanted to gather your insights about each trading platforms.
Based on my research, here are the most popular online stock trader in the Philippines today:
1. Col Financial
2. BPI Trade
3. First Metro Securities
4. Make Trade
5. BDO Nomura
6. Phil Stocks
Which trading platform you are currently using and why?
Can you add information on the below criteria:
b. Convenience on flow of funds
c. Online Platform Features
d. Mutual Fund Option
e. Customer Service
Mon-Mon on 17.03.2019 at 13:47
People often ask how to improve their financial practices. Their condition is they have debts but they know that they should also have emergency savings. They are confused about what's ahead, save for emergency savings or pay their debt.
Keep savings It is important that we have emergency savings because if we do not have it, during the emergency we are likely to be in debt to earn a living. We are especially in debt.
The emergency savings goal is not needed at a time equivalent to nine months' worth of expenses. The important thing is that it will start soon as the emergency savings goal is reached.
Pay the loan quickly
Not all debt is bad. It also works well. If you use debt to a non-profit, it's not desirable to use the loan. So what to do is pay it quickly to finish.
You might think that your return is greater because you have the ability to pay a large interest in the loan.
Accelerate debt and repayment of debt
Paying the loan repayment and saving is my recommendation. Our goal is to (1) repay the debt principally if it is used for non-profit and (2) to have an emergency savings fund equivalent to nine months' worth of expenses.
First of all, you can postpone other types of investment while still paying loan repayments and accumulating emergency savings.
Mon-Mon on 17.03.2019 at 10:49
Emergency fund or emergency savings is our first line of defense if we are hit by a disaster or unexpected events. So it should be liquid and accessible anytime.
Savings account with ATM:
The most commonly used emergency fund is on a regular savings account with an ATM. This is in case of an emergency, immediately withdraw money.
Keep in mind that the main purpose of your emergency savings is not that you will earn massive cash. Its main purpose is accessibility in times of emergency. That is, money always ready.
The emergency fund may also be placed in time deposit. Contrary to popular belief your money will not be reduced when you withdraw a time deposit without ending the term.
The interest rates can be reduced.
How time deposit works.
As I do, the three months worth of expenses are in regular savings account with ATM while the balance of six months worth of expenses puts me on time deposit so it will earn a little more.
I can do this because I know I have a credit card I can use. BUT I pay it in full when it comes to billing statement. Not allowed.
There is also a health card that hospitals can accept in case of illness or accident comes a disaster.
MP2 of PagIBIG:
PAGIBIG is the national savings in the Philippines and affordable housing program of the government. It is more popular as provider of home loans than the government's national savings program.
There is called MP2 savings account. MP2 where members of PagIBIG are encouraged to save using it. It is a time deposit with a five-year term.
It is also considered a liquid because you can withdraw the MP2 during the emergency. Its downside, not as accessible as the bank.
So if this is to be selected, also make the dividing strategy as I did in time deposit.
Government bonds or Treasury bills:
You can also place your government funds or money-purchase funds in your emergency fund. There are retail bonds that the government can start at just PhP10,000.
Must know how to buy and sell a government bond or treasury bill before it comes in to know what process should be in season if it needs to be sold.
Also, I approach the time deposit to divide how much to enter into regular ATM savings and government bonds.
Money Market Fund or Bond Fund:
Emergency savings can be put into money market funds or bond funds. It can be obtained in the form of UITF or mutual fund.
Do not put it in equity funds. Due to equity funds compared to market money funds or bond funds. The amount of equity funds in the disaster or emergency area may have little funding.
Because it is not accessible at any time, splitting divides is fine as I did in time deposit.
Arsenio75 on 13.03.2019 at 14:05
Have somebody help educate our Filipino community on financial management and sharing ideas how to start a business?