The minimum amount needed to invest in the Philippine National Bank (PNB)’s Long-Term Negotiable Certificate of Deposit (LTNCD) is P500,000 or around US$10,400.
According to the PNB representative I talked to, this entire amount is already covered by the Philippine Deposit Insurance Corporation (PDIC).
I thought PDIC’s insurance is, until now, only up to P250,000?
Depositors of the closed Legacy rural banks have little reason to rejoice when the Philippine Deposit Insurance Corporation (PDIC) announced on March 9 that all depositors, including those with deposit balances of more than P100,000.00, can now submit claims.
That’s because according to the PDIC, “payment of valid claims shall be mailed.”
Now, it takes only a bit of common sense to know that sending payment cheques via mail is not a good idea.
Banks have been the perennial option for Filipinos as regards keeping their money. Aside from the fact that deposits are liquid — meaning you can go to a bank anytime during banking hours to request a withdrawal — there is also a sense of guarantee because deposits up to P500,000 are insured by the Philippine Deposit Insurance Corporation (PDIC).
But now that we’re seeing rural banks fail one by one, we wonder: Is our money really safe in banks?
The Philippine Deposit Insurance Corporation (PDIC) is now processing the claims of depositors of the following Legacy rural banks with deposit balance of P100,000 and below.
Please refer to the following for a guide on how to get your money back.
Legacy Group owner Celso de los Angeles is, without a doubt, a cunning but wise businessman. Just last week, he proposed to end the “hardships” of investors of his failed “double your money” schemes by announcing that the company will file for insolvency so its assets can be divided among them.
According to De los Angeles, “instead of clients fighting over the company’s assets, it would be better to surrender all of our assets to court.” The court will then supposedly appoint a receiver who will liquidate all of Legacy’s assets and properties, the proceeds of which will be divided equitably among creditors and investors.
Wow, what a sweet and kind gesture from Mr. de los Angeles.
PMT Forum member tacamonchi recently shared some useful updates about the Philippine Deposit Insurance Corporation’s (PDIC) takeover of the Rural Bank of Paranaque (Banco Paranaque) in the thread Legacy Financial Group’s rural banks.
Early this week, he visited RBoP’s Ortigas branch and was able to talk to a Ms. Hermie from the PDIC who graciously answered all his questions. Here are what he have gathered from the conversation.
Those looking for recent updates regarding the bank holiday declared by rural banks under the Legacy Financial Group need not look further. Below we’ve compiled news articles published on Philippine newspapers and official statements from the Bangko Sentral ng Pilipinas (BSP) regarding the issue.
For more updates, drop by the forum threads Update on the bank run of Legacy rural banks and Discussion of Legacy Group.
Update: Two days after this article was posted, there are now official reports about Legacy banks closing and declaring a bank holiday. Read more here: Update on Legacy rural banks and in the Legacy Banks discussion thread.
After months of speculation in the PMT Forum, several banks under the Legacy Financial Group reportedly declared a bank holiday early this week, meaning they are, for the meantime, closed while planning for the next steps.
There are no official news available online yet but here’s what we have gathered so far based on posts by several PinoyMoneyTalk members.
Please note that the following are unofficial and unconfirmed statements and are merely opinions of PMT Forum members. As of this writing, there is no official word yet from the Bangko Sentral ng Pilipinas (BSP) or the Legacy Group.
