8.88% Interest? Rural Bank of Sta. Rosa (Laguna) Time Deposit Review

A time deposit account is one of your best bets when it comes to growing your money. Just leave your cash in the bank and let it earn interest until maturity!

The question is, which bank should you put your hard-earned money in? Your chosen bank should provide a high enough interest rate, for one thing. Also, make sure to choose a financial institution regulated by the Bangko Sentral ng Pilipinas (BSP).

A rural bank may not be the first thing that comes to mind. But at the Rural Bank of Sta. Rosa (Laguna), a Salmon Company, your savings account can earn up to 8.88% interest—one of the highest rural bank time deposit rates in the Philippines. 

Ready to learn more? Check out this comprehensive guide. 

A Background of Salmon and Rural Bank of Sta. Rosa (Laguna)

Salmon Group Ltd owns and operates subsidiaries in the Philippines, including Sunprime Finance Inc. and the Rural Bank of Sta. Rosa (Laguna), Inc., which was established in 1963. Salmon is supported by world-class shareholders, including the International Finance Corporation (a member of the World Bank Group) and other prominent international and local investors. 

Salmon Group is dedicated to expanding financial inclusion by providing customers with cutting-edge, customer-centric, and AI and data-driven banking and financial services. Its mission is to empower clients underserved by legacy banks across Southeast Asia. 

Salmon aims to change the direction of finance by offering easy, simple, and convenient financial solutions to customers. For one, they offer in-store financing at partner stores all over the Philippines. Through Sunprime Finance Inc., Salmon provides product loans in retail stores nationwide, including SM Store, Robinsons Department Store, Home Along, and FC Home Center, to name a few.

Through the Salmon app, rated 4.8 on the App Store and 4.7 on Google Play and Huawei AppGallery,^[1] they also offer Salmon Credit, a revolving credit line for everyday spending needs. Users can get a Salmon Credit of up to ₱50,000, which they can use to make payments via QR Ph, bank transfers, or e-wallet transactions. They will then pay interest only on the amount they use.

With a controlling interest of 59.7%,^[2] Salmon is the Rural Bank of Sta. Rosa (Laguna)’s major operator. Its goal of financial inclusion in the country is evident, as 76% of its customers are just accessing credit from a formal financial institution for the first time.

Is Their Time Deposit Product Legit? 

Yes. The legitimacy of the product is supported by the credentials of both Salmon and Rural Bank of Sta. Rosa (Laguna).

Sunprime Finance, Inc. is registered with the SEC with Registration Number CS201916698 and Certificate of Authority Number 1241.

Meanwhile, the Rural Bank of Sta. Rosa (Laguna) was established in 1963 and has served local communities in Laguna and Cavite for more than 60 years. It's regulated by the BSP, which means all its operations, products, and services are legitimate. Deposits of up to ₱500,000 are also insured by the Philippine Deposit Insurance Corporation.

Related: 

• Determined to Grow Your Money? Here are 7 Tips to Help You Succeed
• Saving vs Investing: What are the Similarities and Differences?

Rural Bank of Sta. Rosa (Laguna)’s Time Deposit Features

Here are the features of the Rural Bank of Sta. Rosa (Laguna)’s time deposit product: 

Key features:

• Minimum initial deposit - ₱50,000
• Interest rates for deposit amount of ₱50,000 to ₱500,000:
  • 6 months - 5%
  • 9 months - 5%
  • 12 months - 6%
• Interest rates for deposits above P500,000 to ₱50 million:
  • 6 months - 6%
  • 9 months - 6%
  • 12 months - 8.88%
• Withholding tax - 20% for matured time deposit accounts 

How to Calculate Rural Bank of Sta. Rosa (Laguna)’s Time Deposit Interest Rates in the Philippines 

Curious to learn how much your account will earn? Check out this computation:

📌 Situation A

You deposit ₱50,000 with a term of six months. This means your interest rate is 5%. 

First, compute the gross interest earned: ₱50,000 x 0.05. When your time deposit matures, you’ll get ₱2,500. 

But you need to deduct the 20% withholding tax from the interest earned: ₱2,500 x 0.20. The final amount you’ll take home is ₱2,000.

📌 Situation B

You open a time deposit account worth ₱700,000 with a term of 12 months. Based on the bank’s rates, your account will earn 8.88% interest. 

Compute the gross interest earned: ₱700,000 x 0.0888. During your time deposit’s maturity, your account will earn ₱62,160.

Remember that the interest earned has a 20% withholding tax: ₱62,160 x 0.20. In the end, the net interest earned is ₱49,728. 

Rural Bank of Sta. Rosa (Laguna) Time Deposit Product: Pros and Cons

Is a time deposit account with the Rural Bank of Sta. Rosa (Laguna) for you? Check out the following advantages: 

👍 High Interest Rates 

Park your money in a time deposit account with the Rural Bank of Sta. Rosa (Laguna), and you’ll earn an interest rate starting at 5%. The more money you deposit, the higher the interest, even reaching up to 8.88%. 

With these high rural bank time deposit rates in the Philippines, you’re well on your way to achieving your long-term financial goals, whether it’s for your children’s college fees or retirement. 

👍 Internationally Backed 

Sleep without worry since Salmon is backed by the International Finance Corporation (IFC), a member of the World Bank Group. The said institution has invested millions of dollars in the bank alongside other international investors like Singapore’s Northstar Group and Abu Dhabi’s sovereign wealth fund (ADQ). 

👍 Easy Requirements

Easily open a time deposit account with the Rural Bank of Sta. Rosa (Laguna) with just two requirements: two valid government IDs and two 1x1 pictures. If you’re a foreign applicant, you need to present an Alien Certificate Registration.  

👍 Rollover Feature

Once your time deposit account matures, it automatically gets renewed, following the same terms. That means if you don’t withdraw your funds after maturity, your account will continue to earn interest.  

Still, this time deposit product is not without its share of disadvantages. Consider the following before opening an account: 

👎 High Initial Deposit 

The minimum initial deposit for this type of account is ₱50,000. This is pretty steep for many people, especially low-income earners. 

👎 Limited Number of Branches 

As mentioned, the Rural Bank of Sta. Rosa (Laguna) has only two physical branches, located in Laguna and Cavite. Keep an eye out, though—they plan to launch an app soon! 

How to Open a Time Deposit Account with Rural Bank of Sta. Rosa (Laguna)

Here’s what you need to do: 

Step 1: Collate Your Requirements

As mentioned, you need only two government IDs and two recent 1x1 pictures, plus an Alien Certificate Registration if you’re a foreign national. 

The following are the acceptable IDs: 

• Primary IDs
  • Philippine Identification System (National ID)
  • Philippine passport
  • Driver’s license
  • PhilHealth ID
  • SSS or UMID/GSIS ID
  • PRC ID
  • IBP ID
  • Diplomat ID-Philippine Embassy
  • OWWA ID
  • Postal ID
  • Senior Citizen ID
• Secondary IDs
  • PWD ID
  • Voter’s ID
  • NBI clearance
  • Police clearance
  • Barangay clearance
  • For students: student ID (with picture and signed by the school head or principal) or Form 137

Step 2: Head to the Closest Branch

Bring your requirements and initial deposit to any of their branches. Here are their addresses: 

• Head Office in Sta. Rosa, Laguna - F. Gomez St., Barangay Malusak, Sta. Rosa, Laguna
• Branch in Bacoor, Cavite - Evangelista St., Barangay Daang Bukid, Bacoor City, Cavite

If you live in Metro Manila or other areas far from the said branches and plan to open a time deposit of more than ₱500,000, the bank can arrange an appointment at your chosen time and location. The bank will send an account services officer to meet and assist you. Just give your chosen branch a ring via the following contact numbers: 

• Laguna: 
  • Landline - (049) 534 1126 
  • Mobile - 0997 952 7783
• Cavite: 
  • Landline - (046) 434 6197
  • Mobile - 0955 861 7848

How to Withdraw Your Money from Rural Bank of Sta. Rosa (Laguna)

If you choose not to rollover the account upon its maturity, go to the branch where your account was opened and present the Time Deposit Certificate and a valid ID. In case you've lost your Time Deposit Certificate, submit a notarized affidavit of loss stating the circumstances of the loss. Then claim the proceeds in cash or by check.

You can also open a checking account with the Rural Bank of Sta. Rosa (Laguna) and use it as a settlement account. You can opt to credit the proceeds to the settlement account and use checks for transactions or transfers between banks. This eliminates the need for over-the-counter transactions.

Here's what you need to open a checking account:

• Initial deposit: ₱5,000
• Maintaining balance: ₱5,000
• Documents:
  • Photocopy of two valid government IDs
  • Two 1x1 pictures

Note that charges apply if you withdraw your money before its maturity. 

Read more: SSS PESO Fund vs MP2: Which is the Better Savings Program for You? 

Final Thoughts 

While not as big as mainstream commercial banks, rural banks are important financial institutions of various local communities. They serve the unbanked and underserved members of society like small business owners, freelancers, contractors, and OFWs and their families, among others.^[3]

With the presence of Salmon and Rural Bank of Sta. Rosa (Laguna), underserved individuals now have access to time deposits. And what makes it even better is that the Rural Bank of Sta. Rosa (Laguna)’s time deposit rates in the Philippines are higher, so Filipinos can grow their money.  

Ready to grow your money and avail of the 8.88% interest rate? Sign up here now!

Sources: 

• ^[1] Salmon for iOS | Salmon for Android | Salmon for Huawei 
• ^[2] BSP Approves Salmon Banking License (BusinessWorld, 2024)
• ^[3] Rural Banks Experienced in Underserved Areas (World Economic Forum)

DISCLAIMER: This article was created in partnership with Salmon Group Ltd. While we are financially compensated for this collaboration, we ensure to maintain our editorial integrity to provide you with the best recommendations that can help you make smarter financial decisions.