Camsdcute’s Lair

Posts Tagged ‘time deposit’

You have Php10, 000.00 and you don’t know where to put it. This amount is not that big and you’re looking for growth. Do you invest it or just keep it in your savings account? First question is, do you have enough money available for emergency purposes? If yes, then go and invest this 10,000. The rule of thumb is to put approximately 3-6 times of your monthly salary in your savings account that can be readily pulled out in case you need it.

Next question is in how many years are you going to withdraw this money?

One option is to put it in a time deposit account. You must ask and survey banks and other institutions and look for one that offers the highest interest rate for TDs. Cooperatives and rural banks often gives you slightly higher interest rates than larger banks. Rural banks are PDIC insured so you’re guaranteed of getting your money back in case the bank files bankruptcy. Maximum amount covered per depositor is Php250,000.00.

You can also use this amount to play with stocks. Make sure that you do a lot of research before you go into investing in stocks. You can join some online trading sites. One is the CitisecOnline although I am not definite on how much is the minimum initial investment to open an account.

Another one is to engage in a small buy-and-sell business and use your money to buy your merchandise.

If you do not need this amount in the next 5 or 10 years, then you can place this in Mutual Funds.