Filipinos saving for retirement now have another investment option after the Bangko Sentral ng Pilipinas (BSP) approved time deposits as eligible products under the Personal Equity and Retirement Accounts (PERA) framework.
The move gives PERA contributors another way to allocate their retirement savings, particularly those looking for a more conservative investment option within the government-supported retirement program.
Under the latest PERA guidelines issued by the BSP on August 20, 2026, time deposits join a growing lineup of PERA-qualified financial products, including unit investment trust funds, stocks, real estate investment trusts, and government securities.
The BSP said banks that meet applicable prudential requirements may offer PERA-eligible time deposits.
These banks must also secure accreditation from the Bureau of Internal Revenue (BIR) and enter into an arrangement with an accredited PERA administrator before accepting placements.
What PERA time deposits mean for savers
Under the new rules, PERA time deposits must have a minimum maturity of 30 days. When the deposit matures, its proceeds must remain within the PERA account rather than being automatically withdrawn.
Unlike investments whose returns can fluctuate with market movements, time deposits generally offer a predetermined interest rate for a specified period. This could make them appealing to PERA contributors who want to balance potentially higher-risk investments with more predictable returns.
“Retirement planning should be simple, accessible, and within reach of every Filipino,” BSP Deputy Governor Lyn I. 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,” she added.
The inclusion of time deposits could make PERA more accessible to savers who are familiar with traditional bank products but may be less comfortable with market-linked investments.
However, the 30-day minimum maturity means savers will still need to consider their investment timeline, liquidity needs, and the terms offered by the financial institution providing the deposit.
The requirement that proceeds remain within the PERA account also reinforces the account’s purpose as a long-term retirement vehicle rather than a regular savings account.
Another tool for building retirement funds
PERA was established under Republic Act No. 9505, also known as the PERA Act of 2008, as a voluntary personal savings and investment account designed specifically for retirement.
What Does Retirement Planning Include (IMAGE CREDIT: Acquisition International)
The law allows contributors to make investment decisions within their PERA accounts while providing tax incentives subject to applicable rules.
The framework also allows qualified contributors to hold multiple PERA accounts, although only one administrator can be designated for all of them. For most contributors, the annual contribution limit is ₱100,000, while overseas Filipinos are allowed a higher maximum contribution under the law.
Unlike regular time deposits, a PERA time deposit forms part of a contributor’s PERA and may qualify for applicable tax incentives.
The deposits remain bank deposits and are subject to applicable banking regulations and Philippine Deposit Insurance Corporation (PDIC) deposit insurance rules.
For savers, however, the decision is not simply about whether a product offers interest. Factors such as investment horizon, liquidity requirements, potential returns, fees, taxes, and risk tolerance should also be considered when building a retirement portfolio.
A more flexible PERA
The BSP’s move adds another layer of choice to the country’s voluntary retirement savings system.
By adding time deposits to the list of eligible investments, Filipinos can potentially combine more conservative products with other PERA-qualified investments based on their financial goals and risk preferences.
The change could also help bridge the gap between traditional saving and retirement investing by offering a familiar banking product within a dedicated retirement framework.
For financial institutions, meanwhile, the new rules create another avenue for developing retirement-focused products, provided they meet BSP requirements, secure BIR accreditation, and work with accredited PERA administrators.
The BSP encouraged Filipinos to make retirement saving a regular part of their financial planning and to select PERA products that align with their financial goals, investment horizon, and risk preferences.
Ultimately, the success of PERA time deposits will depend on how banks structure and offer them, including the interest rates, maturity periods, accessibility, and other terms available to contributors.
For Filipinos preparing for retirement, however, the addition of time deposits provides another potential tool: a familiar bank product that can now form part of a broader, tax-advantaged retirement savings strategy.
