This post is originally shared inside Traders Lounge Facebook group by Gandakoh in the hope of increasing financial literacy. This article includes some comments from TL members kind enough to share their knowledge.
- A = Amount of money in the savings account after interest is paid
- P = The principal or original account balance
- R = Interest rate in decimal format (e.g., 0.25% = 0.0025)
- n = Number of times the bank calculates interest in a year (e.g., interest calculated daily = 365 time periods)
Over the past five years, average bank interest rates have ranged only from 0.685% to 1.231% annually, based on Bangko Sentral ng Pilipinas. More information here.
PHP 20,000 x 0.25% = PHP 50
PHP 50 – 20% (tax) = PHP 40 per year
PHP 20,000 x 4% = PHP 800
PHP 800 – 20% (tax) = PHP 640 per year
Top comments from TL Family...
“Regarding interest rates po, try nyo rin po mga coops kasi walang withholding tax ung interest rates nila so makukuha mo ung full amount ng interest mo talaga…plus most coops have higher interest rates compared sa mga commercial banks so ur hitting 2 birds wid one stone na (higher rates and no withholding tax)..make sure lang na ang coop na sasalihan is established and stable.”
-Nadin Marie Casipong
“Oh yes, CIMB thru GCash. Nnapansin ko from 4.1% interest rate down to 3.1% but not bad compared to banks. You can observe crediting of interest every 1st of the month via GCash.”
“Yes, CIMB user, legit tlga ung IR nila every month, 3% per annum na sila ngaun pero pwede nman maging 4% IR when you reach >100k deposit with life insurance pa.”
-Zarinah Shara Walanda
“So far legit naman CIMB and ING meron ako both dun nakapasok mga emergency funds para tumubo. Insured naman ng PDIC up to 500k so safe and listed sa BSP.”
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