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The Retail Treasury Bonds (“RTBs”) form part of the National Government’s program to make government securities available to retail investors, especially individuals.
What are Retail Treasury Bonds (“RTBs”)?
RTBs are medium- to long-term debt securities issued by the Republic of the Philippines (“ROP” or “the Republic”) through the Bureau of the Treasury (“BTr”). The RTBs are part of the government’s savings mobilization program designed to make government securities available to retail investors; hence, the name Retail Treasury Bonds. RTBs are fixed-income securities that pay a fixed interest rate per annum over a specified period of time with a promise to return the principal at the end of the term.
Where do the proceeds of the RTBs go?
The proceeds will be allocated to the country’s emergency, recovery, and resiliency funds. The funds will finance expenditures focused on:
Are RTBs tax-free?
Interest income on RTBs is subject to the 20% final withholding tax. Only tax-exempt institutions, duly- certified as such by the Bureau of Internal Revenue, are exempt from payment of the 20% final withholding tax.
What are the objectives of RTBs?
Here are some of the objectives of the RTBs:
Are RTBs safe investments?
Investing in RTBs is considered safe and low-risk because they are a direct obligation of the Philippine government. However, they are still affected by risk and opportunity cost. Thus, it is highly recommended that you understand it first and all the risks involved before investing in RTBs.
How to buy or invest in the RTBs?
There are two ways how you can invest in the RTBs.
First option, you may purchase bonds through any of the Government Securities Eligible Dealers. Visit Bureau of the Treasury's Website for the complete list of partner banks.
The second option is through online platforms. Retail government securities can also be purchased through the following online channels:
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ABOUT THE BLOGGER
Hi, I'm Ralph Gregore Masalihit!
An RFP Graduate (Registered Financial Planner Institute - Philippines).
A Personal Finance Advocate. An I.T. by Profession. An Investor. Business Minded. An Introvert. A Photography Enthusiast. A Travel and Personal Finance Blogger (Lakbay Diwa and Kuripot Pinoy).
Currently, I'm working my way toward time and financial freedom.