The Bureau of Treasury is planning to give as much as P1 million to those who will invest this December.
Treasury bonds is a medium to long-term investment scheme for investors who want to lend money to the government and require fixed income. The government then pays interest rates in the form of coupon payments until maturity period which vary between 5-15 years.
National Treasurer Rosalia V. de Leon said the they have yet to finalise the mechanics of the lotto bonds such as minimum investment, maturity period and interest rates.
However, for this one-year prize bonds — investors might not get the full coupon or interest payments quarterly. Rather, they will get the chance to win prizes ranging from as low as P20,000 to a maximum of P1 million for every quarterly draws
For every P500 investment — one gets one lottery ticket.
T-bonds lotto will be tax-free as these do not pay interest, but only encourage saving.
But they are looking at offering it to individuals, associations and cooperatives three weeks before Christmas.
“You don’t get the full coupon, but you’ll have the opportunity to get higher earnings coming out of your investment for as low as P500. And unlike other cash prizes, you’ll get back your principal. So the principal will be protected—at the end of one year, you can redeem the P500. So you’re not throwing away any good money at all,” De Leon explained.
“Instead of giving your godchildren P500 cash, you can give them this investment—they can still redeem it after one year and they have the opportunity for that higher return,” according to De Leon.
The bonds may be purchased online through state-run lenders Development Bank of the Philippines and Land Bank of the Philippines, which will also tap other local private banks as selling agents.
