13 Responses to “This Is How You Lose Money in a Savings Account”

  1. R1A says:

    Hi Fritz,

    What do you think about BPIs savings account which provides you 5x the amount in the account upon time of death (up to 2M)? I am currently ‘shifting’ my mid-term E-fund and immediate savings there because of this with the plan of having multiple accounts in the next 18-30 months. It would still be far fetched since I (sincerely) hope not to die sooner, but would like to get your thoughts. 🙂

  2. Fitz says:

    Hi R1A, the BPI Save-Up Automatic Savings + Insurance is a good product because it’s an automatic savings plan with term life insurance benefits. But again, this should just be for your EF and 2-year spending budget, and no need to have multiple accounts of this same type.

  3. pinoy says:

    Savings accounts are just for emergency money. Always go for investments such as UITF as mentioned in the post. I love BDO, kasi pwede pakonte konte. As low as 1k a month

  4. Rap says:

    Hello,I have an investment account and a savings account. I religiously add to both every month. The investment has been performing great, while the savings is pretty much as is.

    Do you think it’s okay have a fixed savings goal instead, and focus on investing more? Say fixed savings of 100k. If it goes beyond 100k, i’ll transfer the excess to my investment account? Or would you recommend growing both investment and savings at the same time? My goal is to have enough funds to retire / venture into business after 10-15 years.

  5. Deo j. says:

    What is the best investment plan for BPI or BDO as starters? Ty

  6. Fitz says:

    Hi Deo, go to your bank, answer their Investor Risk Assessment test, and they can recommend to you appropriate investments.

  7. Hi Fitz, would you be so dear to ask Rap’s question as it’s quite similar to my concern as well 🙂

  8. Fitz says:

    Hi Rap and Inghinyero…

    Your savings should have a limit – which is your emergency fund. Anything beyond that should be invested.

    Your emergency fund should at least be 6 months of your monthly expenses. If you spend P30,000 a month, then your EF should at least be P180,000 – and that’s your maximum amount that you keep in your savings account. All else should be invested.

  9. Khen says:

    Hi Fitz,

    What should comes first, savings account or investment? TIA

  10. […] inflation? By not investing, you are actually losing money – and that’s something you should be afraid […]

  11. Piffany Rose Gaabucayan says:

    Khen…savings account should come first for your emergency fund (atleast 3-6 months of your expenses), after setting up your emergency fund, buy insurance (life/health) as part of risk management coz once you have peace of mind for contingencies, the purpose for investing won’t be defeated. Then,open an investment account. either a VUL (protection money+investment), Mutual fund, Uitf, or a trading account if you wanna invest directly in the stock market.

  12. […] they don’t know is that because of inflation, they’re actually losing money by not investing. The Philippines’ average inflation […]

  13. Jack says:

    My view is that central banking/ federal reserve systems/fiat currencies are the real enemy. Because of these systems, any nations currency can be manipulated at will by the banksters. Need to pay a bill, just print more money. However, the currency you hold is devalued because there is more of it. I will share an old story: At one time a man could purchase a fine suit, including a vest and two pair of pants with a single one ounce $10.00 USD gold coin. These days, $10.00 USD (about P500) may not even get you a shirt at the local mall. However, if you still had a $10.00 one ounce gold coin today, I dare say that you could certainly purchase a top shelf suit and all the extras if the gold were converted to paper money. I am not a “gold bug” but I think we can all agree that solid gold is a store of wealth.

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