The Bangko Sentral ng Pilipinas (BSP) recently authorized qualified banks to offer time deposits as eligible investment products under the Personal Equity and Retirement Account (PERA) framework, allowing Filipino savers to open a low-risk, familiar account to help them build a tax-protected retirement fund on top of their already existing pension plans. It was built as a voluntary retirement savings program designed to supplement mandatory state pension plans like SSS and GSIS, as well as any employer-sponsored retirement benefits you may already have, but with government-backed tax incentives that reward long-term savings.
Essentially, it is no different from your regular time deposit — you deposit, wait, and earn — except your money sits inside your PERA, falls under the retirement savings framework, and gets tax incentives as reward. Contributions may qualify for a five percent tax credit and every investment income earned within PERA and every qualified withdrawal at retirement is tax-exempt.
PERA Time Deposit Features
A PERA time deposit, by virtue of the BSP Memorandum No. M-2026-044, issued August 20, 2026, features the following:
- Minimum maturity of 30 days — PERA time deposits must run for at least 30 days
- Proceeds stay in PERA — When the deposit matures, the money stays in your PERA retirement account. It is not treated as a withdrawal
- You choose what happens next — You may roll over, transfer, or reinvest the proceeds in another accredited PERA investment product
- Pre-termination isn’t automatic withdrawal — Ending the deposit early doesn’t count as a PERA withdrawal, as long as the proceeds remain in your account and are reinvested or transferred according to existing rules
- Deposit insurance still applies — PERA time deposits remain covered by Philippine Deposit Insurance Corporation (PDIC) rules, so your money carries the same protection as any regular bank deposit
- It retains the legal form of a regular bank time deposit, but operates within a retirement framework
A PERA time deposit is just like your regular time deposit – only, it is specifically saved for retirement—and the government rewards you for the commitment.
Who Should Consider This?
PERA time deposits aren’t for everyone in every situation—but they make particular sense if:
- You already use time deposits and want to make them work harder
- You’re new to investing and want a low-risk way to start building retirement savings
- You’re self-employed or freelancing without an employer-sponsored retirement plan
- You’re an OFW looking for a safe, government-backed place to put long-term savings
- You want the tax benefits of PERA without navigating the stock market
- You’ve been putting off retirement savings and need a simple, familiar entry point
Requirements
To start, you need to at least be 18 years old with Filipino citizenship (or an Overseas Filipino Worker). You also need to prepare the following:
- Tax identification number (TIN)
- Debit Account
- Register with UnionBank
- Select PERA Administrator
Procedures
To apply, these are the steps that you need to take:
Step 1. Choose an Administrator
Pick an accredited bank or digital provider that offers PERA services (e.g., BDO, BPI, UnionBank, or GCash).
Step 2. Sign Up or Log In
Open your chosen provider’s mobile app or online portal and access your account.
Step 3. Find the PERA Section
Look for the investment or retirement tab — this may be labeled differently depending on the provider (e.g., “Build your Future” on UnionBank, “My Trust Investments” on BDO).
Step 4. Submit Your Details and Documents
Enter your personal information, upload a valid ID, and provide your TIN.
Step 5. Complete the Suitability Assessment
Answer the Client Suitability Assessment to determine your risk profile, then choose your preferred PERA fund product (e.g., bond or equity index funds).
Step 6. Fund Your Account
Link your savings account or e-wallet and make your initial contribution to activate the account.
That’s it — once funded, your PERA time deposit account is officially open. Let me know if you’d like this turned into a checklist or downloadable guide.
Why Banks Can’t Offer This Immediately
Not every bank can offer PERA time deposits right away. There’s a regulatory process in place, and knowing it helps you identify which banks are actually authorized to accept your placement. It also comes with an administrator, too, and he handles the governance side: from managing your account to monitoring contribution limits, maintaining PERA records, and handling tax reporting.