How to compute the interest earned from our Time-Deposit?

What is Time Deposit?

This is interest-bearing bank deposit account that has a specified date of maturity, such as a savings account, etc. These funds must be held for a fixed term. Depositor can only make a withdrawal only by giving notice.

Principal Amount (the amount that you will deposit): P100,000.00

Rate per annum: 1.0%

Term (time that the principal amount will be frozen or locked up): 35 days

Your money will only earn if you will let the bank hold for it for 35 days. You will not get the interest if you withdraw your money earlier than the specified date of maturity.

In our example, the principal amount is P100,000.00 at 1.0% per annum. Note that there’s 20% withholding tax.

The computation will be:

Principal x Rate (P100,000.00 x 1.0% x 35/360 x .80) = P77.78

(360 or 365 may vary depends on your bank)

So, you’ve earned P77.78 after 35 days. You have P100,077.78.

Many of us don’t really care about the interest earned from our savings account. So if you have money to spare, better be wise by putting in time deposits. Small amount, yes. But the accumulation of the interest through time makes us think that we should have started this years ago.

Note: You cannot put an additional amount to the principal while still under a time deposit period since the money is “frozen” until maturity period. You may get another time deposit if you want.

Time deposits are insured by Philippine Deposit Insurance Corporation (PDIC). PDIC exists to provide permanent and continuing deposit insurance coverage for the depositing public to help promote public confidence and stability in the economy. The risk associated is very low that’s why the returns are also low.

How to Apply SSS Salary Loan Application Online? (2017 update)

Greetings everyone!

This salary loan is intended to meet the member's short-term credit needs. Be sure to meet the qualifications and prepare the necessary requirements. 

ELIGIBILITY REQUIREMENTS 

1. All currently employed, currently contributing self-employed or voluntary member.

For a one-month loan, must have thirty six (36) posted monthly contributions, six (6) of which should be within the last twelve (12) months prior to the month of filing of application.

For a two-month loan, must have seventy two (72) posted monthly contributions, six (6) of which should be within the last twelve (12) months prior to the month of filing of application.

2. The employer must be updated in the payment of contributions. (if employed)

3. Not been granted final benefit, i.e., total permanent disability, retirement and death

4. Must be under sixty-five (65) years of age at the time of application

5. Not been disqualified due to fraud committed against the SSS.

REPAYMENT TERM AND SCHEDULE OF PAYMENT

1.The loan shall be payable within two (2) years in 24 monthly installments.

2.The monthly amortization shall start on 2nd month following the date of loan, which is due on or before the payment deadline, as follows:

3. Payment shall be made at any SSS branch with tellering facility, SSS-accredited bank or SSS-authorized payment center.

For more info, click here.

Here's how I apply a salary loan from SSS website.

STEPS 

Step 1. Log-in to your SSS account using Internet Explorer browser. https://www.sss.gov.ph/

Step 2. Once logged-in, hover your mouse over "E-SERVICES" and click "Apply for Salary Loan".

Step 3. If you DO NOT QUALIFY, you will see the reason why. 

If you DO QUALIFY, choose your preferred loan amount. The maximum loanable amount is P30,000.00. Make sure to check the box agreeing to the terms and conditions. Then click Proceed. 

Step 4. Success! You have filed your SSS Online Application!

It may take 3-4 weeks to receive the check. Your human resources department or whoever is in-charge may send an email to notify you where you can claim your check.

• Once you're done, you will receive an e-mail from SSS. 

• Inform your employer to make sure that they will certify your loan application. (Employers should also be registered online so they'd be able to certify the salary loan applications.)

To check the loan status, click "E-SERVICES, "Loans" then "Loan Status/Loan info"

Employer needs to certify your loan application. 

Once certified, you will receive an email from SSS.

If you check the status in SSS website, it'll be like this.

In my case, I have applied for the SSS salary loan on January 18, 2017. And on the same day, my employer has certified my loan application. You can also check thru SSS website the status of your salary loan.

A day after (January 19, 2017), I checked the status again thru SSS website.

Now that the status shows "CHECK GENERATED", this means that the salary loan check is already on process and will soon be delivered to your mailing address. 

That's all, folks. :) Less hassle on falling in lines and standing all day long to file your loan.

Note: I am not affiliated with the SSS. For SSS-related inquiries, please call the SSS call center at 920-6446 to 55 or send an email to member_relations@sss.gov.ph.