Information About AFPSLAI


This article is posted under General Information, In Focus.

What is AFPSLAI? How does it work? Is it good to invest in it? Is my money safe in AFPSLAI?

Those are the questions that we will try to answer today as I know a good number of people are actually interested to know them.

A friend of mine, who works at the PNP, recently told me that he had put money into AFPSLAI, which then inspired me to write this post.

Anyway, for those who don’t know, AFPSLAI stands for Armed Forces and Police Savings & Loan Association, Inc.

It is a private, non-stock and non-profit savings and loan association established and registered with the Securities and Exchange Commission since 1972. It is supervised by the Bangko Sentral ng Pilipinas and one of the leading providers of financial products and allied services to the AFP, Army, Air Force, Navy, PNP, BFP and BJMP.

afpslai investment cca Information About AFPSLAI

What exactly is AFPSLAI?

In simple terms, it is a savings and loan “corporation”. It is NOT a bank, but operates LIKE a bank. And not everyone can open an account with them, or in more exact terms, become a member of the association.

Regular Membership is limited to:

  • Military Officers
  • Military Enlisted
  • AFP/PNP Retiree/Pensioner
  • AFP/PNP Pensioners (Widow/Widower/Orphan)
  • Inactive/Reserved Officer
  • PNP Officer/Non-Officer
  • Civilian Employees (AFPSLAI-accredited institutions)
  • Resigned from Service/Honorably Discharged (for AFP/PNP military/police only)
  • BFP/BJMP Officer/Non-Officer.

Meanwhile, Associate Membership is open to:

  • Legitimate spouse of regular married member
  • Legitimate children of the regular married member (21 years old and above)
  • Philippine Veterans Administration Office (PVAO) pensioners
  • PNPA/PMA/PAF Cadet
  • Candidate Officers (OCS and NOCC)

So if you don’t qualify to any of those, then AFPSLAI is not for you. However, if you are, or if you know someone who is qualified, then better read on.

afpslai loan Information About AFPSLAI

How does AFPSLAI work?

The easiest way to understand how AFPSLAI operate is to compare it to a bank. Currently, they have twenty-one (21) offices and fifty (50) extension offices around the country. Their “main branch” or head office is located at EDSA cor Bonny Serrano Rd., Camp Aguinaldo, Quezon City.

Loan Products
As a member of AFPSLAI, you have access to their loan products which can help you with your financial needs. They offer salary loans, personal loans, housing loans, auto loans and even business loans to name a few. The interest rates, in my opinion, are actually very competitive.

Deposit Products
More importantly, members of AFPSLAI can avail of their deposit products. Particularly, the Capital Contribution Account (CCA) which is a high-dividend earning “savings” account; the Pension Account for pensioner remittances, and the simple Savings Deposit Account, which gives a tax-free 3% per annum interest (better than any commercial bank I know).

Other Products
AFPSLAI also has other products and services such as ALMS, which is similar to life insurance; AMD, an automated investment service; APEX, for remittance of pensions; and SMS, a text-message service. They also offer college scholarships.

afpslai pension deposit Information About AFPSLAI

AFPSLAI as an Investment

Members of AFPSLAI are very lucky because they have access to one of the best investment products I’ve seen, the Capital Contribution Account (CCA), which according to reports for the past 10 years, have produced an incredible, average tax-free dividend of at least 18% per year. That’s as good as the stock market!

CCA regulations limit a member’s contribution to only P30,000 per quarter. However, one can be exempt from the P30,000 per quarter limit if the member enrolls in the Automatic Monthly Deduction (AMD) service.

Moreover, there is a maximum total contribution of P3M for Regular Members and only P1M for Associate Members. So if your contribution reaches that limit, you can no longer place money in CCA.

So assuming you have P3M placed in CCA, that’s P45,000 per month dividend for you – not bad, right? If I am qualified to be a member, I’d definitely place some of my money here.

Is it safe to put money in AFPSLAI?

I took time to read their 2012 Annual Report and found their finances to be stable.

Moreover, as a savings and loans association, your money is actually insured by the Philippine Deposit Insurance Corporation (PDIC), which at current, is up to P500,000. (This is now pending verification as conflicting information has been discovered)

Personally, the biggest risk with AFPSLAI is poor investment decisions and mismanagement. The last reported news related to this happened in 2006, where they lost money in their investments with Centennial Savings Bank and Centennial Financing Corp. (Source) But I think AFPSLAI has already recovered from that loss and members have not been severely affected by it during that time.

Short to say, I believe your money is safe in AFPSLAI.

I have good faith with them and believe that it is stable and currently managed by competent people. But for risk-averse individuals, I’d advise they put not more than P500,000 there so as to be sufficiently covered by the PDIC in case anything happens.

So there you have it, a primer on the Armed Forces and Police Savings & Loan Association, Inc. or AFPSLAI. To learn more about them, you can visit their website at www.afpslai.com.ph.

If you are a member of AFPSLAI, or know somebody who is, then I hope you can give below as a comment your experience with them. Thank you.

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All photos taken from the AFPSLAI 2012 Annual Report.

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People are talking about this article, join the conversation below.

  1. Good to hear this from you Fitz since we have an investment in Afpslai,

  2. Hi Fitz,
    Just wanna ask that the PDIC insurance if for both your savings account and capital contribution (CAPCON) account? Thank you.

  3. Hi Fitz! My dad used to have some savings in AFPSLAI and yes I agree that it’s safe to have it invested there. I especially would like to comment that in case of emergencies and you need to withdraw your money immediately, you don’t have to go through a very difficult process. A representative will just check if your request to withdraw (esp for huge amounts) is valid and they will release the money without any red tape whatsoever.

  4. AFPSLAI is like a mutual fund companuy, am I not right in my understanding?

  5. My husband and me are AFPSLAI member for more than 20 yrs now. We started when there was no maximum limit contribution for member and the interest rate then was 20% . It was unbelievable knowing that the rest of the bank interest rates was only 5-10 % for time deposit account .
    And you’re right. Now there is a 3m maximum limit for active member and 1m only for associate member with an interest rate of 18%. And you’re also right- it is comparable to stock market – even better esp now that the stock market is in its bearish period.
    Withdrawing money is easy just like in the bank even up to million pesos.
    Their saving account has an interest rate of 3% – much higher than any bank around.
    I hope it is there to stay.

  6. My husband and me are AFPSLAI member for more than 20 yrs now. We started when there was no maximum limit contribution for member and the interest rate then was 20% . It was unbelievable knowing that the rest of the bank interest rates was only 5-10 % for time deposit account .
    And you’re right. Now there is a 3m maximum limit for active member and 1m only for associate member with an interest rate of 18%. And you’re also right- it is comparable to stock market – even better esp now that the stock market is in its bearish period.
    Withdrawing money is easy just like in the bank even up to million pesos.
    Their saving account has an interest rate of 3% – much higher than any bank around.
    I hope it is there to stay.

  7. Hi Fitz,

    Thanks for this article. I remember 10 year ago during my high school years my father opened an AFPSLAI account for me and my brother. Those where the times I get more than 4% dividend interest every quarter, that’s about 20% per year. AFPSLAI is my only investment vehicle back then, until I attended IMG-Wealth Academy in Cebu and decided to diversify.

  8. Hi Fitz,

    I’m an Army officer and I’m glad I invested in AFPSLAI. The dividend is doing great as usual. Unfortunately, I invested late in that military financial institution since there’s already a 10k limit every month. For automatic deductions of active personnel, it can be 20+k for one month. Those people who invested early are so lucky! Actually, I made a blog about this so that soldiers will understand that this is a good investment.

    You can check my site: A Wise Filipino Soldier

    Thanks for sharing! ;-)

  9. Sir base on AFPSLAI website, deposits are not insured in PDIC.. i red it on their FAQ page. thanks..

  10. Hi Joel, I’ve edited the article for now and I’ll look more into that, thanks.

    My basis for saying that it is covered is in the PDIC website:

    http://www.pdic.gov.ph/index.php?nid1=6&nid2=1&nid3=7

  11. newbie investor on November 9th, 2013 at 8:08 pm

    Hi Fitz,

    I am glad you take time to post this article on AFPSLAI.
    Indeed, it is true and I am a member of this years back.
    I am happy with them because of the High Interest and
    it encourage me more to save with AFPSLAI. But now, I want
    to look for a trusted person who is a member to deposit in
    their account since the AFPSLAI is having limit on placement.

    Keep writing! :)

  12. newbie investor on November 9th, 2013 at 8:13 pm

    Hi Fitz,

    AFPSLAI is a good investment vehicle.
    I am experiencing it by myself.
    It is so inspiring to see the figures of your passbook
    digits becoming double.

    Good Article and Reliable.

    Keep writing! :)

  13. newbie investor on November 9th, 2013 at 8:19 pm

    Hi Fitz,

    If you are not yet married,
    marry a police woman then you will be in..

    Kidding here but it’s true…

    or anyone there who don’t have chance to be a member,
    then look for a partner in police, army, air force.
    And make your partner become a regular member and
    you can be an associate member.

    Just saying… ;)

  14. Question. What if the you are a child of a retired soldier and would want to apply as an associate member but your parent is not a member? Is it still possible to apply as a member?

  15. newbie investor on December 8th, 2013 at 12:18 pm

    Answer to Ariane : If your parents is not yet a member of Afpslai then you will not qualify as an Associate Member. You may ask your father to be a regular member first then you can apply as an associate member.

  16. BumberongSnappy-_- on December 22nd, 2013 at 12:15 pm

    hi fitz.. compound interest ba gamit nla sa CCA?tnx

  17. e ung AFPSLAI website FAQ na nga may sabi na hindi sya insured by PDIC, ayaw mo pa maniwala? hehe peace!

  18. Compounded sya per quarter. So an 18% annual dividend is actually 4.5% compounded per quarter.
    Last quarter, it’s only 15.5% p.a. though.
    I plan to keep depositing around max limit less dividend until 2017. Ill just then wait until I start receiving quarterly excess dividend by around 2020 (hopefully AFPSLAI is still stable by then).


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