🎟️ If You Hate Stock Market Drama, Read This

Last time, we explored stock investing. Now, let’s talk about bonds.

They’re not flashy. They won’t 10x your money in six months. But if you’ve ever found yourself wondering how to grow your money without obsessing over stock charts or falling into the crypto rabbit hole, this is worth knowing.

In today’s edition, we’ll go over:

• What bonds are

• Bond types you can invest in

• Returns and whether they’re worth it

TLDR;

The Bottom Line

• Bonds are low to medium-risk investments where you lend money to the government or companies in exchange for fixed interest over time.

• RTBs, Premyo Bonds, and Corporate Bonds are the most accessible options for Filipino retail investors.

• Returns range from ~5–8%, with government bonds being safer and corporate bonds offering slightly higher yields but more risk.

• Best for medium-term goals (3–5 years), bonds are a solid alternative if you want steady income without the chaos of stocks or crypto.

The content

What Are Bonds?

At the core, a bond is you lending money to someone else (usually the government or a big company) and they promise to pay you back, with interest, after a set amount of time. That’s it. It’s an IOU that earns a little something.

Unlike stocks, you don’t “own” anything. You’re not betting on the company’s success. You're just asking them to borrow your cash, pay you some interest every few months, and return the full thing later. 

🇵🇭 Bonds You Can Actually Buy Here

There are a few types floating around, but the ones regular people like us can actually get into are:

Retail Treasury Bonds (RTBs)

Issued by the government, usually via banks. Starts at ₱5,000. Fixed interest every quarter. Runs for 3 to 5 years.

Not bad if you want stable returns without drama.

The most recent government-issued Retail Treasury Bond (RTB) offering was RTB 30, issued in 2024. It carried a 5-year tenor and offered a gross coupon rate of 6.25% per annum, payable quarterly, and matured in 2029.

Premyo Bonds

Same as RTBs but they slap on a raffle mechanic. So you get your interest and a chance to win cash prizes. Yes, this is real. They’re not frequent, but people do line up for these.'

The most recent issuance of Premyo Bonds was back in November 2020. It offered a 1-year tenor, a minimum investment of PHP 500, regular quarterly interest, and entry into quarterly raffles for cash and non-cash prizes.

Corporate Bonds

Issued by big companies like Ayala, SM, the banks themselves. Slightly higher interest (because you’re taking on a bit more risk—companies can go south). Usually ₱50K+ minimum, depending on the issuer.

Recently (last month), UnionBank launched a bond offering with 1.5- and 3-year terms, paying 5.88% and 6.02% annually.

Where Do You Get These?

You’ll see them announced by:

• Banks (BDO, BPI, Security Bank, etc.)

• Online platforms (like bonds.ph)

• Sometimes via your stock broker (like COL Financial)

Heads up: they’re not always available. These things are offered in cycles, and when the offer period ends, you’ll have to wait for the next one or buy them secondhand (yes, there’s a resale market, but it’s less beginner-friendly).

Why should you care?

 What About the Returns?

They vary. But to give you an idea:

What About Taxes?

Most bonds are taxed at 20% on the interest you earn.

Is It Worth It?

That depends on what you’re looking for.

If you’re saving up for something 3–5 years down the line—say, a wedding, a small business, or even just a chunky emergency fund—then yeah, bonds make sense. They’re calm, predictable, and they don’t need babysitting.

If you’re trying to double your money in two years? This isn’t it, and that’s okay.

Stuff Worth Sharing

The Link Lowdown

• Bond terminology: What to know before you invest - Confused by the terms? Start here.