Banks Going Bankrupt? ~ Pinoy Reviews

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Monday, December 15, 2008

Banks Going Bankrupt?

So, I've heard in the news that there are some rural banks filing for bankruptcy--well, they're not bankrupt yet but the BSP has already put them under receivership. I also heard that these banks were under the legacy group.

The funny thing is that a few years back I was tempted to deposit some of my money in a bank related to the Legacy Group because they were offering insanely huge interest for their time deposits. I think it was somewhere between 20-25% for a 500,000 time deposit which you can't withdraw for five years but the interests will be paid to a separate savings account. Plus they give you freebies such as a free trip to Hong Kong. I've heard about them through a Pinoy Money Making forum though I forgot which particular forum was it (I frequent lots of them).

There were lots of people in the forum who deposited their money with them because they say they're insured by the PDIC. My father talked me out of it saying that what they're offering is just too good to be true and besides, just because they claim that they're insured under PDIC doesn't mean they actually are.

I feel sorry for those who invested their life savings on these rural banks. I bet they're thinking of filing a personal bankruptcy of their own. Well, it's a good thing that I've heeded my father's advice. Now I'm saved from a lot of headache.