Why you should invest in bonds – and how to do it

MANILA, Philippines — Filipinos are known for their hard work, making immeasurable sacrifice to provide for their families. However, working hard is no longer the trend nowadays. With the influx of globalized economy, the Filipino labor force should embrace the value of working smarter—especially when it comes to their savings.

While others go into business, another means to further grow savings is through investment in bonds, which promise greater return, more security and higher confidence.

Here’s what you need to know about bonds:

1. What are bonds?

Borrowers issue bonds, which are given to investors who are willing to lend them money over a certain period of time.

In return, investors are ensured a specified rate of interest earned on their loan. If you hold your bonds to maturity, you will get back the entire principal plus interest. Hence, bonds allow you to preserve your capital while investing.

Institutions, such as banks and multinational corporations, offer bonds to raise funds for expansion and growth. 

2. Are bonds a safe investment?

Yes, definitely! Bonds are considered fixed-income investments that provide a predictable income stream. With bonds, you basically earn from the interest of your loan, which is assured over a period of time.

Depending on your arrangement, you can withdraw your earnings quarterly or semi-annually through coupons. You can spend or reinvest such additional income

3. What are the risks?

Unlike other investments, bonds offer minimal to no risk. The greatest risk for bonds comes when the bond issuer cannot pay its obligations.

However, when transacting with trusted and stable institutions such as Metrobank, you are protected and assured as they have the means to pay the principal and interest.

4. Are bonds better than time deposits?

While time deposits have shorter maturity periods, bonds have greater earning potential.

For example, with Metrobank’s 3-year Peso Fixed Rate Bond, you can earn an impressive 6.3-percent interest rate per year over the fixed period.

For example, with an initial investment of at least P500,000, you can earn P75,600 in just three years.With bonds, you get a good balance of growth and time. As such, you can enjoy the gains throughout your commitment.

Bonds You Can Trust

Bonds, therefore,are an attractive investment. They are ideal for individuals who want to maximize the earning potential of their savings. Bonds are also perfect for those who already have savings and time deposit accounts but are still looking for ways to invest their extra savings.

There are many ways to grow your money—start a business, dabble in the stock market, buy real estate—but a stress-free, risk-free way to diversify your portfolio is by investing in bonds in a trusted financial institution.

As they say, “don’t put all our eggs in one basket,” which is an apt philosophy when it comes to managing your investments.

Think bonds can work for you? Invest with Metrobank by downloading the form here and getting in touch with your branch of account or investment specialist. You’re in good hands—with bonds you can trust.  

For more information, visit www.metrobank.com.ph.

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