In recent years, many financial experts have noted a growing trend toward exploring alternatives to traditional bank savings products, as newer options may now offer more competitive benefits. While opinions on personal finance vary, there seems to be a broad recognition of the evolving landscape, with some traditional banking products being seen as less advantageous in certain scenarios Inflation has always been a problem, but with inflation rates now often exceeding many bank savings interest rates in the Philippines, people should be exploring other vehicles for protecting their hard-earned wealth.
For upwardly mobile Filipino consumers, online digital banking has provided a solution to this conundrum. Of all the emerging personal finance providers, Maya has given an especially strong showing with its Maya Savings, Maya Time Deposit Plus, and Maya Personal Goals products. These easy-to-manage, high-yield bank products outperform other solutions to give you an easy way to outpace today’s accelerating inflation rates. Here’s how to protect your funds from inflationary pressures and why Maya should be your go-to digital bank in the Philippines:
1. Effortlessly Stay Ahead of Inflation with Maya Savings
Traditional savings accounts may be fine for some things but they’re probably not going to preserve your fund’s value in the face of growing inflation. Instead, look for digital bank products that offer higher interest rates, like Maya Savings.
Leaping well ahead of its competition, Maya Savings gives you a generous 3.5% interest rate per annum (p.a.), with no cap on balances. Even better, you can boost this interest rate to 15% p.a. by just using Maya solutions for your daily transactions. For example, you can use Maya Wallet to buy load, pay for dining expenses, and purchase groceries to give your savings rates an impressive boost over time. Each time you use Maya solutions, you’re effectively strengthening your funds against inflation.
This simple formula illustrates the earnings you can get from Maya Savings when boosted to 15%
End-of-Day Balance × Interest Rate x 1/365) = daily interest that is credited to your Maya savings account
So if you invest PHP 100,000 at 15% for a month (30 days), your interest can be computed as follows:
100,000 x (15%/365) = PHP 41.096* daily
This is equivalent to an exciting PHP 41.09 per day or PHP 15,000 per year. The best thing about Maya Savings is that you’ll be able to see these daily interests credited to your account every day.
Take note that withholding tax will be applied on all interest earnings.
2. Take Advantage of Maya Time Deposit Plus for Long-Term Stability
Once you have built your savings, you can leverage the power of time deposit accounts to further protect your funds from inflation. Maya Time Deposit Plus provides up to 5.75% p.a. in interest, allowing you to benefit from consistent returns while shielding your capital from inflationary pressure.
Use this simple formula to calculate your estimated earnings:
Interest = Principal × (Interest Rate/100) x Days/365
For example, if you invest PHP 100,000 at 5.75% p.a for 180 days (six months), you can compute for your interest this way:
Interest =100,000 ×(5.75/100) x (180/365) = PHP 2,835.62 in 6 months
Take note that withholding tax will be applied on all interest earnings.
3. Keep Yourself Focused with Maya Personal Goals
Having a financial goal helps you maintain focus and keeps you from depleting your hard-earned savings. Maya Personal Goals allows you to set and track specific savings objectives like building an emergency fund, saving pocket money for a dream vacation, or saving for your down payment for a property investment. With guaranteed interest rates of 4% p.a., you can easily stay on track with your goals while also keeping the effects of inflation at bay.
4. Invest in Diversified Assets
Beyond Maya’s digital banking products, you can diversify your investment portfolio to include appreciating assets like stocks, bonds, or real estate. The right investments can offer you returns that outpace inflation while also providing a measure of protection against future market instability. While the risks may differ depending on the investment product, some research and patience will help you build a future-proof portfolio that handily outpaces any shifts in the cost of living and prices of goods and services.
5. Use the Power of Compound Interest
Compounding interest is one of the most powerful ways to grow your wealth but you won’t enjoy the benefits unless you contribute consistently. While you can use your interest earnings from Maya Savings or Maya Time Deposit Plus for anything, you may want to reinvest as much as you can back into it to grow your wealth faster than before. After just a few short years of consistent contributions, you’ll start to see significant gains in your baseline earnings from interest.
6. Track Inflation and Adjust Accordingly
A wealth-building strategy that works today may not be viable next year. You’ll want to monitor inflation rates and readjust your strategies to stay ahead of inevitable cost of living increases. If inflation rises, consider selling off poor-performing assets and moving more money into accounts like Maya Time Deposit Plus for safe returns.
7. Spend Wisely and Live within Your Means
The best investments won’t help if your spending outmatches your income. Using budgeting apps and tracking your spending over the Maya App will do a lot to keep your spending in check. Make sure that your Maya Savings and Time Deposit contributions are part of your budget so that responsible wealth-building becomes second nature to you.
Secure and Grow Your Wealth with Maya
With high-yield savings tools like Maya Savings, Maya Time Deposit Plus, and Maya Personal Goals, Maya leads the pack as the best digital bank for today’s financially sophisticated savers. Using these exclusive savings products will make it easier to develop to earn more on your funds while also giving you more leeway to build sound financial habits. Open your first Maya Savings account today to enjoy a much better way to save.
*The computations are estimates and subject to taxes. Rates may vary depending on the user's boost interest eligibility. For the exact figures, you may check your Maya Savings dashboard in your Maya app.
