Low-risk investment with Premyo Bonds 2| BondsPH(Unionbank)

About 2 weeks ago, I received a marketing email from Unionbank—inviting their account holders to join their Bonds investing app called BondsPH. I know little things about investments but I am always interested in financial freedom.

Despite my interest in personal finances, I’ve never taken any serious investments especially with these types of investments where you put your money to work. The reason is—first, I don’t have much money to invest. Second, I don’t have emergency funds to be confident with taking risks and lastly, I have a lot of liabilities to pay.

Investing also requires so much time in studying and analyzing how it exactly works, otherwise people fail with it. I just don’t find it exciting like building businesses or projects to make money.

However, this email by Unionbank about Premyo Bonds caught my attention somehow. So I told, my self—why not give it a try.

So in this post, I’ll share with you the details of what is Premyo Bonds, how to subscribe to this investment and all other things I found about this bonds investment. It may be long but I’ll make sure that you’ll leave this post with no further questions. Char lang. Please follow my blog and my social media accounts to show some love. 🥰

What is Premyo Bonds 2?

Okay. This is where we start. Premyo Bonds is a type of Bond investment with BondsPH. There are other banks that offer Premyo Bonds but BondsPH app is basically the easiest platform to get started with. It’s also available for a limited-time only.

A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental)
According to Investopedia

If you invest in Bonds, it’s like you are lending your money to the corporate or government (and with Premyo Bonds it’s for the Government.). It’s a low-risk type of investment because whatever happens, the Government is required to provide the investors with the money and income that has been agreed.

This is a safe and guaranteed way to invest money, but don’t expect too much. I’ll tell you why in a bit.

Premyo bonds investment is actually being promoted by the Bureau of Treasury. To be honest I am not sure if all bonds are supposed to be promoted by the said bureau but that is what it is for Premyo Bonds.

Premyo Bonds is Different from other Bond investment

What makes Premyo Bonds 2 different from any other bond investment is that they really have Premyo(Prizes). For every 500PHP(which is also the minimum investment amount) that you invest in Premyo Bonds 2, you get one raffle entry for their draw. And they also mentioned that if you have a 20,000 PHP investment you also get a chance to win 50,000 PHP quarterly. I honestly, don’t know when the raffle happens but probably after the maturity date of your investment.

As per their video ads below you can win a car, house, condo and huge things like that. But on this PDF file I found on treasury.gov.ph it is cash rewards and Car.

Why are they giving away prizes for investors?

According to the video below, the government is trying to raise around 3Billion PHP for our country to survive the expenses during pandemic and other current situations that we’re facing. Because of that, they created Premyo Bonds 2 and made it very accessible to retail investors like us. This is to entice people who are interested in investing but had low capital. It is also said in the presentation that the number of winner increases if they are able to raise more than 3 Billion PHP.

If you want ton know what is Pag-Ibig MP2, please click the link to see my post about it.

How much interest will you earn from Premyo Bonds 2?

Given the fact that this has a guaranteed return investment, the interest rate is very low. Premyo Bonds interest rate is just 1.25% and has a deduction of 20% tax, In their earnings calculator, the total amount that you’ll earn in a year is just 1%. Example you invested 20000PHP, you’ll earn 200PHP within the year. I am not sure if that is the normal rate for Bonds but I think it’s very low and instead of seeing it as an investment, it seems like it’s just a savings account rate.

When will you get your earnings with Premyo Bonds?

The earned interests are paid to your account quarterly, but the maturity date of your investment is 1 year. Meaning to say, you can only get your interest quarterly within one year and after the maturity that’s the time you get everything including your invested money,

Should I invest with Premyo Bonds?

Yes, I just tried it because to be honest, I am having a hard time saving up. I was using CIMB(via GSave), to save up as it has high interest rate. The thing is I cannot commit in not touching the money, so that’s why I opted for Premyo Bonds. I can just put some money in BONDSPH to invest with Premyo Bonds and my money is locked in for a year. That way I can commit in saving up at the same time I get interest and a chance to win. Aside from that I also feel like I am being able to make a part of helping our Government to raise funds.

As we can see with our current situation, everyone just puts all the blame to our government even though they haven’t been doing their part as a citizen.

Other things you need to know:

There are fees when transferring payments from other accounts and ewallets to BondsPH, so I strongly advice that you use UnionBank to transfer as it is free of charge.
It only takes one business day to get verified with BondsPH
This investment is on Pre-selling period and you can invest only until December 11, 2020
Here’s the brochure of Premyo Bonds from the Bureau of Treasury’s website for more info.

PDF Brochure