Premyo Bonds: Invest and win up to P1 million cash

In an advisory, the PHL Treasury said the much awaited one-year “premyo” bonds or retail security papers will be available between November 25 to December 13, 2019. This investment product by our government is quite interesting as the premyo bonds provides investors an opportunity to invest in government securities while giving them a chance to win Php1 million pesos in cash prizes for a minimum investment of only Php500.

Each premyo bond can be bought in such multiples for a maximum of 20,000 bonds or Php10 million per bondholder. The interest rate of 3 percent will be subject to a 20-percent final tax, according to the Treasury.

During the quarterly raffles, one bondholder will win Php1 million, while there will be 10 winners of Php100,000, and 50 winners of Php20,000. Also, a bondholder in possession of multiple premyo bonds units may win multiple times. The winner of the tier one cash rewards may also receive a non-cash reward from participating entities.

Winners shall be determined on every cash rewards draw date via randomized selection among all premyo bonds units from eligible bondholders included in the master list of bondholders provided by the Treasury. On every cash rewards draw date, each premyo bonds unit shall be assigned a 20-character electronic rewards number (e-RN) using the cash rewards application system.

Understanding Premyo Bonds

A bond is a debt security. As a debt, it means there’s someone who is borrowing money and there’s another one lending it. When you invest in government bonds, it means that you are lending money to the government.

• Premyo bonds are safe - As this is issued by the National Government, it is one of the safest in terms of credit risk.
• Reliable - Premyo bonds provide fixed quarterly interest income to investors.
• Non-tradable - The bonds cannot be bought and sold in secondary markets.
• Non-Preterminable - These cannot be pre-terminated before maturity.
• Non-transferable - Ownership cannot be transferred from one entity to another.
• Principal redemption - The principal cost will be returned to you intact after one year.

Who can invest?

Those who are eligible to invest are individuals, associations (such as non-stock and loans associations as well as employee associations), cooperatives, employee retirement funds, provident funds, and trust entities (except collective investment schemes or CIS, mutual funds, and UITFs).

How/Where to Invest?

The selling agents included BDO Unibank Inc., BDO Capital and Investment Corp., China Banking Corp., China Bank Capital Corp., Development Bank of the Philippines (DBP), First Metro Investment Corp., Land Bank of the Philippines, and Metropolitan Bank and Trust Co., where online placements may be accommodated by First Metro Securities Brokerage.

The premyo bonds can be purchased online by account holders in state-run lenders DBP and Landbank at a maximum amount of Php500,000 per transaction among investors 18 years old and above. Or you can do so online as well:

1. Log on to www.treasury.gov.ph and read/understand the details before investing. Once done, click ready-to-order.
2. Accomplish required ordering form, select settlement bank, and agree to terms & conditions.
3. Pay the principal cost - Log-on to chosen settlement bank’s online payment facility (zero transaction fee).
4. Proof of investment - Notice of successful payment may be printed as your proof of investment in premyo bonds. The system generated notice of successful payment shall be sent to your designated email.

So, what are you waiting for? Seize this opportunity to not only invest your extra funds but also get a chance to win!!

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