Investing is one of the most effective ways for you to build wealth, achieve your financial goals faster, and ensure your secure financial future. It allows you to maximize your money by making it work for you. Not only that, investing also helps you develop financial management skills that will be useful to you throughout life.
However, if you’re one of those who haven’t tried their hand at investing yet, you might be unsure of where to start. That is because investing can seem intimidating for beginners due to a number of factors, and one of these is the belief that they will need to set aside a lot of money just to be able to invest. This is why it’s not uncommon for many to think they don’t have enough money to make a proper investment.
Investing doesn’t have to involve a large amount of money, though! In this quick 101, we will be talking about two financial instruments that you can invest in without the need to shell out a lot of money—retail treasury bonds and Premyo Bonds!
Retail Treasury Bonds
Retail treasury bonds (RTBs) are great options for you if you want to start investing but are still not fully comfortable with the idea of setting aside money just for investing. Issued by the Bureau of the Treasury (BTr) as a means to raise funds to be used for many of its projects, RTBs are investment products with a one-year maturity that give people the opportunity to purchase government securities and are meant to provide small-time investors with an affordable way to grow their money.
RTBs offer a lot of advantages especially to small-time investors. First, RTBs provide a safe and guaranteed source of extra income. You get to earn on a quarterly basis, which is deposited directly to your bank account. RTBs also offer interest rates that are higher than those of savings accounts and time deposits which are offered by local banks.
RTBs are ideal for those who want to invest small and prefer low-risk options. They are also a great way to preserve your money since income is guaranteed. Because they are issued by a government entity, there is a very low chance of you not getting your earnings or not getting your money back.
Premyo Bonds
Premyo Bonds are another great option for you if you are looking to start small when it comes to investing. Similar to RTBs, Premyo Bonds are investment products with a one-year maturity issued by the BTr in order to help raise funds to be used for various government projects, while enabling small-time retail investors to purchase government securities for growing their money.
Investing in Premyo Bonds comes with many of the benefits offered by RTBs, such as a safe and guaranteed source of income, higher interest rates compared to savings accounts and time deposits from banks, and the security afforded by the issuer being a government entity, among others.
What makes Premyo Bonds unique is that investing in them also comes with a lottery component. So, aside from the guaranteed quarterly income, you’ll also get the chance to win cash and other big-ticket items via a raffle draw held quarterly. The higher your investment amount is, the higher your chances of winning in the lottery.
Premyo Bonds was first launched in November last year. Recently, BTr opened the sale for Premyo Bonds 2, which offers bigger cash prizes and items compared to last year.
Investing in Premyo Bonds 2 is easy. All you have to do is download the Bonds.PH app, powered by UnionBank, and complete the sign-up process. Upon verification, you will be able to use the app’s cash in feature. Once you complete your cash in, you can now start investing in bonds by clicking on the “Buy” option. You just need to select Premyo Bonds 2 and then complete the purchase. With that, you’re officially a Premyo Bonds investor!
Bonds.PH is available for download on the Apple App Store and on the Google Play store. To learn more about the app, visit www.bonds.ph.
Investing is one of the best ways for you to grow your money and take control of your financial life. With this short guide, we hope we were able to help you gain a better understanding of how you can invest without the need for a large amount of money. Happy investing!
