The Bangko Sentral ng Pilipinas is letting banks offer time deposits as an investment option under the Personal Equity and Retirement Account (PERA) programme, adding a familiar, low-risk product to a lineup that has so far leaned on market-linked instruments.

Memorandum No. M-2026-044, issued on 20 August 2026 by BSP Deputy Governor Lyn I. Javier, recognises deposits as PERA-eligible instruments under the Manual of Regulations for Banks, in line with the PERA Act (Republic Act No. 9505).

A PERA time deposit takes the legal form of an ordinary bank time deposit and stays subject to the same banking laws that apply to deposits generally.

Only banks that meet BSP prudential standards may offer it, and they must secure accreditation from the Bureau of Internal Revenue and partner with an accredited PERA administrator before accepting any placements.

Banks must include the word PERA in the product name and set interest rates at market levels.

The deposit matures in a minimum of 30 days, and maturing or pre-terminated proceeds do not count as a withdrawal as long as the contributor keeps them in the PERA account and rolls them over, transfers, or reinvests them.”

The deposits remain covered by the Philippine Deposit Insurance Corporation, and banks must disclose the interest rate, fees, tax incentives and relevant risks before a contributor commits funds.

Time deposits join unit investment trust funds, stocks, real estate investment trusts and government securities on the list of PERA-eligible products.

“Retirement planning should be simple, accessible, and within reach of every Filipino,” Javier said. “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.”

Featured image: Edited by Fintech News Philippines based on an image by rawintanpin via Magnific.