Posted by: jinoe | March 22, 2007

My Road to Riches – Banks and Interests

After keeping coin banks, next is doing business with a real  bank.  Banking is very convinient.  Allows me to keep some of my money and earn a little. In fact, its very little.  Earning interests are so small in most banks but the charges are high.  So I also make the most with these banks.

1.  Online banking.  I prefer to manage my funds online.  It saves me time and money.  I dont have to go to a bank to deposit and to transfer.  Saves me from traffic, fare, and snacks.  It also saves me from the deposit fee whenever I transfer funds from Manila to Negros. 

2.  If I lost my ATM cards, I dont request for a replacement.  I will pay a fee for the replacement card.  What I do is to open another account since the ATM card comes free.  Then I move my funds to my new account thru online banking.  Neat trick.

3.  If I have extra, I open an account with higher interest rates.  BPI has the Platinum Savings and Equitable has Optimum.  It’s a bit better than the regular savings.  But be careful with some restrictions.  Some accounts limit the number of withdrawals per month.

4.  ATMs are so convienient that I tend to withdraw anytime even if what I want to buy is unnecessary.  I havent done this but try opening an account with a bank far, far away and has no ATM.  Place a big deposit and leave it there for safe keeping.  This will prevent you from withdrawing the amount as often as you like because going to that bank takes time and effort.  Just make sure you wont forget that you have money stashed somewhere.

5.  Rural banks and other “smaller” banks.  I haven’t made a deposit yet but some rural banks have very high interest rates than the big banks.  Some can double your money in just 5 years.  Try Rural Bank of Paranaque and AMA bank.  They say they have high interest rates.

6.  I open multiple accounts.  It helps me to monitor my savings if I have a separate account for long term savings, another for short term savings and another account for everyday expenses.  It helps me check if I am overspending or not.

7.  I don’t keep money on my payroll account.  It doesn’t earn interest at all.  It doesn’t need a maintaining balance also.  So every payday, I just move my money to other accounts.

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