As the economy of the Philippines continues to evolve and personal wealth-building gains prominence in people’s list of priorities, the importance of effective financial management also becomes increasingly clear. Many Filipinos are now realizing that building a secure financial future requires more than just earning a stable income; it necessitates thoughtful planning and strategic saving. Savvy savers are exploring the many different products and services offered by financial institutions to enhance their saving potential and achieve their financial goals.
Among the financial tools available to retail banking consumers today, savings accounts and time deposit accounts continue to be popular options among Filipinos. These basic savings products not only provide security but also offer opportunities for growth through interest earnings. But while opening a savings account or a time deposit account is a great way to start your financial journey, understanding how to take advantage of their unique features—especially among those offered by digital banks like Maya—can help you maximize your fund’s growth potential. Here are some tips to effectively utilize these banking accounts so that you can make the most of your hard-earned money.
Savings Account
Select a High-Yield Savings Account
Opening a high-yield savings account is an excellent way to make your savings work harder for you. This type of savings account typically offers an interest rate that’s significantly higher than what traditional savings accounts offer, allowing your money to grow more quickly over time. The best banks to open these accounts with are often digital banks. These fintech entities tend to have lower overhead costs, enabling them to pass those savings on to customers in the form of higher interest rates and other benefits like reduced fees.
Maya Savings by Maya—the number one digital bank in the Philippines—offers a base interest rate of 3.5% p.a., which is higher compared to what most brick-and-mortar banks offer. You’re also going to love the fact that Maya Savings offers flexible and convenient ways to manage deposits and transfers. Users can deposit funds instantly and for free from their Maya Wallet, or use PESONet and InstaPay to deposit from other banks and e-wallets, including BPI, BDO, UnionBank, GCash, and ShopeePay. Fund transfers to other Maya Savings accounts, on the other hand, are free and instant, while transfers to other banks or e-wallets can also be made through PESONet (currently free) and InstaPay (PHP 15 per transaction).
Furthermore, there’s no minimum balance required to save in your Maya Savings account, so you can certainly start saving without the pressure of maintaining a specific amount in your account. All that being said, take note that to enjoy the benefits of Maya Savings, as well as access all of Maya’s features, you need to have an upgraded Maya account.
Take Advantage of Boosted Interest Rates
Some savings accounts offered by digital banks provide boosted interest rates that can significantly enhance your fund’s earning potential. Maya Savings, for instance, lets you increase your interest rate by up to 15% p.a. and all you have to do is complete a number of missions like using your Maya app to buy load and pay bills, paying with your Maya Card and with Maya Easy Credit, or pay with Maya online using your registered Maya number.
Take note that the interest rate will reset at the start of every month. Thus, it’s a good idea to plan your spending and saving habits accordingly to take full advantage of the higher rate throughout the month.
Avoid Unnecessary Withdrawals
To truly maximize the benefits of your savings account, it's ideal to avoid withdrawing from it unnecessarily. Each time you withdraw funds, you not only reduce your principal amount but also miss out on potential interest earnings. To cultivate a stronger saving habit, consider creating a budget that prioritizes savings to help you resist the temptation of making unnecessary withdrawals. For instance, you could establish a separate buffer fund for everyday expenses so that your main savings account remains untouched. This approach allows your savings to grow steadily while ensuring you have accessible funds for immediate needs.
Time Deposit Account
Open a Time-Based Account That Lets You Grow Your Funds Significantly
Time deposit accounts typically require you to lock in your funds for a set period so that you can secure a higher interest rate that can make a significant difference in your earnings over time. Many banks in the Philippines offer competitive rates on time deposits, but some digital banks provide much higher rates than traditional financial institutions. All Maya Time Deposit Plus accounts from Maya, for instance, start with a guaranteed 3.5% p.a. interest rate, but it can be boosted by up to 5.75% p.a. depending on your tenor and when you reach your target amount. You also get to create up to 5 accounts at a time, giving you more ways to diversify your investments and manage your savings across different terms.
Moreover, this financial product lets you grow your savings at your own pace. Unlike traditional time deposit accounts that typically require you to deposit a large amount from the start, Time Deposit Plus lets you open an account with any amount. You just have to set a minimum target of at least PHP 5,000 to start enjoying a boosted interest rate. Time Deposit Plus also allows you to deposit any additional amount at any time until you reach your target amount, which can also be as little as PHP 5,000. What’s more, no minimum balance is required of users. This approachable and accessible positioning makes Maya Time Deposit Plus one of the most popular time deposits in the Philippines.
Select the Right Term
Selecting the right term length is a key factor in maximizing your time deposit account. Time deposit accounts often offer terms ranging from as short as 30 days to as long as five years or more. Generally, longer terms come with higher interest rates, which can lead to greater earnings.
In the case of Maya’s Time Deposit Plus, all accounts start with a 3.5% p.a base interest rate. However, the boosted interest will depend on your chosen term length. Time Deposit Plus has three options: 3 months, 6 months, and 12 months. For 3 months, your interest rate can be boosted by up to 5.25% p.a. when you reach your target amount. For 6 months, the rate can be boosted by up to 5.75% p.a. Finally, for 12 months, you can earn up to 5.50% p.a.
To help you decide on the most suitable term for your situation, use a time deposit calculator to estimate your earnings based on different term lengths and interest rates. This tool allows you to evaluate the potential returns, ensuring you pick a term that balances growth potential with your financial flexibility.
Allow Your Time Deposit Funds to Mature
Even though some financial institutions give you the option to withdraw your money from your time deposit accounts before the agreed-upon date, it’s advisable not to do so. Withdrawing your funds early may result in penalties or a reduced interest rate, diminishing your potential gains. Therefore, you need to commit to the full term to allow your money to exponentially grow.
To ensure that you won’t be tempted to withdraw locked-in funds early, you can leverage, instead, Maya Personal Goals to set up separate savings accounts for short-term goals while earning a guaranteed 4% interest p.a. monthly. Maya Personal Goals is another feature in the Maya app that helps you save and organize your money toward specific financial goals. Think of these as the things you want in life, like concert tickets, a new phone, or a vacation. You can create up to five separate goal accounts, each one with a customized name, target amount, and due date. This way, your Maya Time Deposit Plus can stay untouched, accumulating higher interest over a longer term, while Maya Personal Goals helps you actively save for immediate or short-term aspirations.
Understanding the unique features and benefits of a savings account and time deposit can help you make informed decisions that enhance your saving potential. It also empowers you to use effective strategies that can lead you toward a more secure financial future. Whether you choose to open a savings account, a time deposit account, or both, taking proactive steps and remaining committed to your savings goals can turn your financial dreams into reality.
