The Bangko Sentral ng Pilipinas (BSP) has allowed qualified banks to offer time deposits as investment products under the Personal Equity and Retirement Account (Pera), expanding the list of options available to Filipinos saving for retirement.
Under Memorandum No. M-2026-044, Pera time deposits must have a minimum maturity of 30 days. Upon maturity, the proceeds are kept in Pera assets and are not counted as a withdrawal.
Consumers can roll over, transfer, or reinvest the proceeds in another accredited Pera investment product, based on your instructions or existing investment arrangement.
‘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 in a statement.
A Pera time deposit functions similarly to a regular bank time deposit, as it holds funds within a contributor’s Pera and may qualify for tax incentives under the retirement savings program. The deposits will also remain subject to rules governing Pera.
According to the BSP, banks that wish to offer Pera time deposits must meet applicable BSP prudential requirements and notify the central bank of their plans.
They must secure Bureau of Internal Revenue (BIR) accreditation before offering placements and partnering with a Pera administrator.
The new product joins other investment options available under Pera, including unit investment trust funds, stocks, real estate investment trusts and government securities.
Pera, created under Republic Act No. 9505, is a voluntary retirement savings program, which supplements state-based pension plans and/or employer-sponsored retirement plans.
Individual contributors may place up to P200,000 annually, while overseas Filipinos may contribute up to P400,000 a year.
Latest BSP data showed Pera contributions surged 45 percent to P757.55 million in the first half of the year from P521.36 million a year earlier. Employee contributions accounted for the largest share at P449.45 million, followed by those from self-employed Filipinos at P207.9 million and overseas Filipino workers at P100.2 million.
The increase in contributions came alongside a nearly fivefold rise in the number of Pera contributors to 30,055 from 6,193 during the same period.