Just sharing stuff…
Like I said in my previous post, I’m going to discuss some investment vehicles in this blog.
Most of us from the Philippines are more familiar with Time Deposit (TD) as an investment vehicle. Placing your money in a time deposit is advantageous especially if you are after the security and stability of your savings and earnings; the Philippine Deposit Insurance Corporation insures your stakes. Another advantage of TD is that you have a fixed earning depending on the amount of time you are willing to invest your money. The longer you invest your money in a time deposit, the better it is for your stake.
The key is to look for banks that give high annual percentage yields (APY). TD is perfect especially if you want to develop the patience and discipline in salting away your future because banks have the leverage to inflict economy-sized sanctions on you if you infract your agreed terms.
Anyway, below are the latest APYs that the different banks and account types offer. Study them carefully and know which suits you best.
A Caveat: Inflation Rate
I do not normally recommend this investment vehicle to friends. 🙂 One important aspect that one should realize in saving and investing their money is the inflation rate. The inflation rate essentially quantifies the “value” of your “money”. For example, if the inflation rate of the country is 3.9% annually, then a ₱20 Cornetto ice cream will cost ₱20.78 in a year. Now, if the growth of your money is slower than that, say an APY of 2.00%, that same ₱20 bill you had that could have gotten you a Cornetto ice cream will now be ₱0.38 short in a year because it’s only grown to ₱20.40.
F.Y.I. The inflation rate of the Philippines in January 2012 was 3.9%. The average inflation rate of the country in the last five years, 2007-2011, is 4.78%. Investing in a mutual fund might be better for you. 🙂
Think about it. 🙂