How to use this calculator
- Enter how much you plan to invest and the coupon rate from the offer.
- Type the years to maturity and choose the tax treatment.
- Set the final tax rate and the inflation you expect.
- Read the net interest per year and per quarter, the total at maturity and the yield after inflation.
- Compare the result with a time deposit or a digital bank savings rate.
How retail treasury bonds fit into a savings plan
Retail treasury bonds appeal to savers who want a predictable income from a government issuer. You know the coupon, the payment dates and the maturity, which makes it easy to plan around.
This calculator turns the coupon into peso amounts after tax and compares the net yield with inflation, which is the number that matters for buying power. It does not reinvest interest, so the real result may be a little higher if you do.
Compare it with a Pag-IBIG MP2 plan and a savings goal for money you may need sooner.
How the bond estimate works
- Gross interest per year equals the amount invested times the coupon rate.
- If the interest is taxed, the final tax rate is withheld from it. The auto option treats bonds under five years as taxed and longer bonds as exempt, as a planning shortcut.
- Net interest per quarter is the yearly net interest divided by four.
- Yield after inflation compares the net yield with the inflation rate you enter.
Tips to save more
- Match the maturity to when you need the money.
- Do not put your emergency fund in a bond you cannot sell quickly.
- Read the tax and early sale rules in the offer.
- Spread money across savings, bonds and funds.
Frequently asked questions
What is a retail treasury bond?
It is a government bond sold to individuals, usually in small amounts, that pays a fixed coupon on a schedule until it matures.
Is the interest taxable?
It depends on the offer and the years to maturity. Check the offering documents, since the rules on final tax and exemptions apply to the specific bond.
How often is interest paid?
Retail bonds commonly pay interest every quarter. Check the schedule in the offer.
Can I sell before maturity?
You can usually sell on the secondary market, but the price can be higher or lower than what you paid, depending on interest rates.
Why check inflation?
If prices rise faster than your net interest, your buying power can fall even though the peso amount grows.
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This calculator gives estimates for planning only. It is not financial, tax or legal advice. Confirm exact figures with your employer, bank, lender or the relevant government agency.