BSP Adds Time Deposits to PERA Investment Options, Expanding Choices for Retirement Savers

01 Event

The Bangko Sentral ng Pilipinas has added time deposits to the investment options available under the Personal Equity and Retirement Account, or PERA, according to reports on August 30. PERA is the Philippines’ voluntary retirement savings framework designed to encourage long-term investing with tax incentives.

02 What Changed?

PERA investors now have another option that generally carries lower market volatility than equities or many bond funds. Time deposits typically offer a fixed interest rate for a defined period, making returns easier to estimate.

The change broadens the range of risk levels available inside PERA. Retirement savers who were uncomfortable placing all their contributions in market-linked products may find the program more approachable.

03 Why It Matters

Retirement planning often fails not because people choose the wrong investment but because they never start. A simpler, more familiar option can lower the psychological barrier to opening and funding an account.

However, lower volatility does not automatically mean better long-term value. Time-deposit returns may struggle to keep pace with inflation, especially when inflation is elevated. Younger savers with decades before retirement may still need growth assets to build enough purchasing power.

04 What It Means for You

If you already use PERA, time deposits can potentially serve as the conservative portion of your retirement allocation. They may be useful for money you expect to need sooner within retirement or for investors who want to reduce volatility as they approach retirement age.

If you are decades away from retirement, compare the expected return after inflation. A safe nominal return can still result in declining purchasing power if prices rise faster.

Also compare fees, lock-in periods and tax treatment before assuming that a PERA time deposit is automatically better than an ordinary deposit account or other retirement investment.

05 Numbers + Context

PERA was created to encourage long-term retirement savings through tax advantages and a dedicated investment structure. The addition of time deposits increases product choice at a time when Philippine inflation remains above the BSP’s target range.

Related Earnyx coverage: Read how interest rates affect long-term financial decisions and how extra income can fit into a broader financial plan.

06 Earnyx Takeaway

More choice is useful only when it matches the investor’s time horizon. Time deposits can add stability to a retirement portfolio, but stability and growth are different goals. The right comparison is not simply “safe versus risky”; it is whether the expected return is enough for the number of years you have until retirement and the inflation you may face along the way.

Adding time deposits to PERA matters because it gives retirement savers a familiar lower-risk option inside a tax-advantaged account. Many Filipinos understand bank time deposits better than stocks, REITs or pooled investment funds, so the change could make PERA easier to use for people who have avoided it because the available products felt too complex.

The key distinction is that a PERA time deposit is not simply an ordinary bank time deposit with a different label. It sits inside the PERA framework, which means the contributor must use an accredited administrator and the product must meet the program’s rules. The tax treatment and withdrawal restrictions also differ from a normal deposit account.

For savers, the trade-off is straightforward: lower volatility generally means lower expected long-term return. A time deposit can be useful for the conservative portion of a retirement portfolio, but someone with decades before retirement may still need growth assets if they want their savings to outpace inflation over the long run.

Inflation is especially important in 2026. When consumer prices are rising quickly, a deposit that earns less than inflation can still lose purchasing power even though the peso balance grows. Safety from market fluctuations is not the same as protection from inflation.

That does not make time deposits a poor choice. They can be appropriate for contributors who value capital preservation, are approaching retirement, or want to balance more volatile investments. The right use depends on time horizon and risk tolerance rather than on which product has the highest advertised rate.

Deposit insurance also deserves attention. PERA time deposits remain bank deposits and are subject to applicable banking rules and PDIC coverage limits. Savers should understand how coverage applies across accounts at the same bank rather than assuming every PERA placement is separately insured without limit.

Another practical issue is liquidity. Retirement accounts are designed for long-term savings. Contributors should keep a separate emergency fund outside PERA so they do not depend on retirement money for short-term expenses. Tax incentives are valuable only if the money can remain invested under the program’s rules.

For first-time retirement savers, the addition can make a simple starting strategy possible: use a familiar product to begin contributing, then learn about other eligible investments over time. The biggest retirement mistake is often not choosing the wrong asset but delaying saving altogether.

The Earnyx takeaway is that the new option increases choice, but choice should still be tied to purpose. A PERA time deposit can add stability and simplicity, while higher-growth assets may be more suitable for money that will stay invested for many years. The best retirement portfolio is not the one with the most products; it is the one that matches the saver’s time horizon, risk tolerance and need for inflation protection.

Before opening one, compare the offered rate, maturity terms, administrator fees and how the deposit fits with the rest of the PERA portfolio. Familiarity is useful, but total long-term value still depends on costs, taxes, inflation and diversification.

Those details determine whether the new option is genuinely worth using.

For retirement savers today.

Source: BSP PERA investment-option update reported by PH Tech & Business Wire, August 30, 2026.