I’m sure you’re aware of both GSave and UPSave of CIMB. But did you know that they now offer time deposits as well? Yep, their high-interest time deposit account is called MaxSave.
What is MaxSave?
MaxSave is a CIMB’s time deposit account wherein your money gets locked in for a certain period to get a higher interest yield.
Currently, they offer 3 lock-in periods with varying interest rates. The longer the lock-in period, the higher the interest rate.
What are the lock-in periods?
The 3 lock-in period for CIMB’s time deposit are the following:
- 6 months with a 6.5% per annum interest rate
- 12 months and a 7% p.a. interest rate
- 24 months for a 7.5% p.a. interest rate
How much can you deposit?
The minimum amount to start a MaxSave account is 10K pesos and the maximum is 1M.
How much can you earn?
The app will show you the gross interest amount that you will earn based on the lock-in period you’ve selected. Here are sample screenshots for a 1M deposit:
Take note that the values indicated are GROSS interests. Since CIMB is a bank, there will be a 20% tax on the interest earned as governed by law. So to get the Net interest, simply multiply the amount by 80% or by 0.8.
But here’s the actual calculation of the interest rate:
Can I withdraw my money before the lock-in period is completed?
Yes, you can. However, you’ll incur fees/charges for doing so.
Documentary Stamp Tax (DST) Fee
- For the 6-month account = term in days / 365 * 1.5 / 200 * principal amount
- 12-month & 24-month accounts = 1.5 / 200 * principal amount
Pre-Termination Fee
- Canceled first half of tenure: 50% of gross interest amount earned
- Canceled second half of tenure: 25% of gross interest amount earned
Take note that your gross interest (before the fees) is still subject to a 20% tax.
Where to open a MaxSave account?
Creation of a MaxSave account is easily done via the CIMB app.
Kuya Well’s Corner
CIMB’s time deposit accounts are a good addition for those looking for high-yield interest-rate accounts. But you’re thinking along the lines: “Isn’t it better to just stick with GSave or UpSave and simply complete the missions/mechanics for the promos they offer to increase the interest rate per annum?”
That’s a valid point but the question lies in how well you can complete the mission/mechanics. Let’s not forget that there are months wherein their interest promo is so-so. For example, between January – February 2024, their current promo is a flat 5% interest p.a. (no cap).
Also, some of their promos have a cap on the amount that will earn better rates. This is true with Maya Savings as well wherein they allow you to earn up to 12-14% p.a. if you’ve accomplished their “tasks” but it will only be applied to your first 100K deposit. The rest will earn the base interest rate of 3.5% p.a.