Just this week, I went to the BDO to update my time deposit and added few amounts. This served as my savings and I have never withdrawn this since I transferred to another branch near my place. Three months ago, the interest of the time deposit in one month to three months was 1.375%. Few days ago, I was shocked to know that it dropped down to 0.75%. Also the interest rate of their savings account went down.
Oh, well, the stock market is down. I am no expert regarding with the stock market but I read some news about it went down to how many percentage. Okay, everything is affected.
Do you have any time deposit accounts? Which bank are you in and what's the interest rate? Do you prefer to keep your money on time deposit as an emergency fund? Why or why not?
Hi Rox,
ReplyDeleteActually interest rates are down, because the Bangko Sentral has kept lowering the overnight borrowing and lending rates. And they did that because the inflation rate is relatively low (~3.xx%) and they would like to take advantage of that by "encouraging" people take money out of the bank and either investing it directly (business) or indirectly (stocks, etc.) or using it to buy stuff and raise consumption and stimulate the economy further.
But in my experience, China Bank usually gives the highest interest rates for savings and time deposits. (I have a post about savings accounts and time deposits; I updated it I think last Feb or early March so it should be relatively accurate. You can also try BPI Family. (I'm not affiliated with either bank, btw :D)
Uhm... I prefer savings for an emergency fund. So that if there's an emergency I can always get my money right away. When it gets bigger, you can split between TDs and savings.
Wow thanks for the info about the interest rates getting down. :)
DeleteHow much is the minimum deposit in China Bank? China Bank will be having a branch in our place so I'll be interested getting to know more their products they are offering soon. I will read your post about it on your blog.
Actually, I split my emergency fund with a savings and TDs.
Good to hear that from you. :)