BSP adds time deposits to PERA retirement options
By Francis Allan L. Angelo
By Francis Allan L. Angelo
The Bangko Sentral ng Pilipinas has expanded the investment choices available under the Personal Equity and Retirement Account, allowing qualified banks to offer time deposits as PERA investment products.
The change gives Filipino workers and other savers another way to build retirement funds through a familiar bank product that offers relatively lower investment risk and more predictable returns than market-linked instruments. Because the deposits are held within PERA, eligible contributions may also receive tax incentives intended to encourage long-term retirement saving.
Time deposits, along with unit investment trust funds, stocks, real estate investment trusts, and government securities, are among the financial products that may qualify for PERA.
The BSP set the requirements in Memorandum No. M-2026-044 dated Aug. 20, 2026, which provides guidelines for banks seeking to offer PERA time deposits.
Under the guidelines, banks must meet applicable BSP prudential requirements before offering the product.
Banks must also secure accreditation from the Bureau of Internal Revenue and enter into a written arrangement with at least one accredited PERA administrator before accepting placements.
“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 a regular time deposit, a PERA time deposit forms part of a contributor’s retirement account and may qualify for applicable PERA tax incentives.
Current BSP guidance provides a 5% tax credit on qualified PERA contributions. An employee or self-employed contributor may contribute up to PHP 200,000 annually and qualify for the incentive, while an overseas Filipino may contribute up to PHP 400,000. Each spouse in a married couple may contribute up to PHP 200,000 to a separate PERA.
Income earned from qualified PERA investments and reinvestments is also exempt from taxes on investment income, while qualified withdrawals upon retirement may be tax-free, subject to applicable rules.
The new PERA time deposits remain bank deposits and are subject to applicable banking regulations and Philippine Deposit Insurance Corporation deposit insurance rules.
Under the memorandum, PERA time deposits must have a minimum maturity of 30 days, and their interest rates must be market-based and comply with disclosure rules governing bank deposits. Maturity does not automatically count as a PERA withdrawal. Proceeds must remain within the contributor’s PERA and may be rolled over, transferred, or reinvested in another accredited PERA product based on the contributor’s instructions.
Pre-terminating a PERA time deposit likewise does not by itself constitute a withdrawal as long as the proceeds stay within the PERA and are held, transferred, or reinvested according to PERA rules.
Banks offering the product must disclose the interest rate, effective annual yield, fees, applicable tax incentives, pre-termination conditions, withdrawal rules, and relevant risks to contributors.
Accredited PERA time deposits must also be enrolled in PERASys, the BSP-maintained PERA registry used for monitoring, recordkeeping, and tax reporting.
The BSP said Filipinos should make retirement saving a regular part of financial planning and select PERA products suited to their financial goals, investment horizon, and risk preferences.
PERA is the country’s voluntary retirement savings program under Republic Act No. 9505, or the PERA Act of 2008. It is designed to supplement retirement benefits from the Social Security System, Government Service Insurance System, and employers while giving contributors government-backed tax incentives for long-term saving.
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