LandBank Interest rate

PNB INTEREST RATE

Principal This is basically the amount of money that you put on for time deposit the amount that will
earn interest.

Term The time (in days) that you let your money (principal) be locked-up be it in 35, 63, 91, 182 or
364 days. Note that you cannot touch the principal amount during the term that you have committed.
So if you are thinking that you might need the money in the coming months but you just cannot
specifically tell when, then, just take the shorter terms, 35 or 63 days for instance.

Interest rate This is the percentage that your principal deposit will grow (minus tax) if you let it stay in
a time deposit for 1 year. Note that this is an annual interest rate so dont expect to get the full weight
for a less-than-a-year term. The rate also depends on the principal amount and the duration of time
deposit (term). You can find out more about how this interest rate works for the committed period in
the computations below.

Earned Interest (net) The amount that you will get after completing the term of your time deposit.
The formula to compute the net interest earned is something like this:

Earned Interest (net) = Principal x Interest Rate x (Term/360) x (100% Tax Rate)

Sample Time Deposit Interest Rates

Interest Rate x (Term/360) is used to compute the effective interest rate as the deposit term days is
proportioned to 360 days or 1 bank year. (100% Tax Rate) is the tax deducted from the gross
interest amount earned. At present, the tax rate stands at 20%.

To understand how the formula works, consider an example in which you opened a time deposit with
principal amount of, say, Php 100,000 and with maturity date (term) after 35 days. Using the interest
rate as shown in the corresponding table, the net interest earned is computed as,

Earned Interest (net) = 100,000 x 1.625% x (35/360) x (100% 20%) = Php 126.39

Your money is now Php 126.39 more for just letting it stay in a time deposit for 35 days.