What happens if I close my Time Deposit after the cooling-off period?
The following changes will apply:
- Your interest will be recalculated at 1% p.a. instead of the original rate.
- A pre-termination fee of 0.75% of the principal will be charged.
- Both the 20% withholding tax and the documentary stamp tax will be deducted.
After these deductions, the net amount will be credited to your Salmon Daily account.
Example:
You open a 1-year Time Deposit of ₱100,000 at 6% per year. After 6 months, you decide to close it early.
Interest is recalculated at 1% per year for the 6 months you kept your deposit: ₱100,000 × 1% × (6 months /12 months) = ₱500
The 20% withholding tax is deducted from this interest: ₱500 − ₱100 = ₱400
A pre-termination fee of 0.75% of your deposit is charged: ₱100,000 × 0.75% = ₱750
Documentary stamp tax is deducted
You'll receive about ₱99,650 of your original deposit, minus the documentary stamp tax on your Salmon Daily. Otherwise, keeping your Time Deposit for the full year would have earned you ₱6,000 in interest before tax, or ₱4,800 after tax.
This example is for illustration only. Interest is calculated daily, so actual amounts may differ slightly. You'll see the exact amount you'll receive in the Salmon app before you confirm.