Retail Treasury Bonds Philippines RTB30 - How to Buy and If It's Worth It?

Summary

In this informative video, the host discusses RTB 30 (Retail Treasury Bond 30), an investment program by the Bureau of Treasury designed for retail investors. With a minimum investment of Php 5,000, RTB 30 offers a fixed annual interest rate of 6.25%, higher than typical savings accounts. The host compares it with MP2, highlighting key differences in terms of investment flexibility and taxation on dividends. They share their personal experience enrolling through First Metro Securities, guiding viewers through the process while encouraging them to explore government securities for better returns.

Takeaways

• 📈 RTB 30 refers to the Retail Treasury Bonds offered by the Bureau of Treasury, designed for retail investors.
• 💰 The minimum investment for RTB 30 is only Php 5,000, making it accessible to many individuals.
• 🏦 RTB 30 is aimed at funding national government expenditures in areas such as infrastructure, education, and healthcare.
• 📊 The current offer for RTB 30 provides a fixed interest rate of 6.25% per annum.
• ⏳ Both RTB 30 and MP2 have a 5-year lock-in period for investments.
• 📉 RTB 30 offers fixed interest payments, while MP2 allows for yearly compounding of interest.
• 🚫 Withdrawals from RTB 30 after maturity are handled differently than MP2, which requires direct withdrawal from Pag-IBIG.
• 📅 Dividends from RTB 30 are taxed at 20% withholding tax, while MP2 dividends are tax-exempt.
• 📧 The investment process involves enrolling through a brokerage account and confirming your investment.
• 🔍 Interested investors should check the Bureau of Treasury's website for further information and a calculator for estimated dividends.

Q & A

What is RTB 30?

RTB 30, or Retail Treasury Bond 30, is a government program designed to make government securities available to retail investors, particularly individuals. It aims to finance national expenditures and investments, such as infrastructure, food security, education, healthcare, and poverty reduction.

What are the main benefits of investing in RTB 30?

Investing in RTB 30 is considered low-risk and offers higher yields compared to traditional savings accounts. It is a direct, unconditional obligation of the Republic of the Philippines, making it a secure investment.

What is the minimum investment required for RTB 30?

The minimum investment amount for RTB 30 is Php 5,000.

How does RTB 30 compare to MP2?

Both RTB 30 and MP2 have a 5-year lock-in period. However, RTB 30 offers a fixed interest rate, while MP2's interest rate depends on its performance. Additionally, RTB dividends are subject to a 20% withholding tax, while MP2 dividends are tax-exempt.

What is the fixed interest rate for RTB 30?

The fixed interest rate for RTB 30 is 6.25% per annum during the public offering.

Are the dividends from RTB 30 taxed?

Yes, the dividends from RTB 30 are subject to a 20% withholding tax.

Can investors add funds to their RTB 30 investment after the initial deposit?

No, investors cannot add funds to their RTB 30 investment once it has been made. The amount invested remains fixed until maturity.

How are the estimated dividends for RTB 30 calculated?

Investors can use a calculator available on the Bureau of Treasury's website to estimate their dividends based on their investment amount, factoring in the 20% withholding tax.

What is the process for enrolling in RTB 30?

To enroll in RTB 30, investors need to have a brokerage account, such as First Metrosec. They can select the order via the ordering facility, fill out the necessary forms, and confirm their investment.

What happens to the dividends after maturity for RTB 30?

The dividends earned from RTB 30 are automatically added to the investor's brokerage account, where the investment was made, after the maturity date.