Sunday, February 3, 2013
BDO cuts interest rates too (after MBT and BPI)
(image from www.slatepropertiesnow.com. No copyright infringement intended.)
I already blogged in a previous post about the rate cuts on deposits products of Metrobank and BPI this year.
And now, BDO has imposed the same rate decrease on savings products. See the new rates on their website.
0.25% annual interest rate. Seriously?
If you have P100,000 in a savings account in any of these three banks, that will mean an interest earning of P250 after a year. And if you reduce the automatically deducted 20% withholding tax, that earning will be sliced to just P200.
Like what I said before, saving in a bank is for emergency and liquidity purposes. For your retirement or long-term goals, invest in other instruments, not in bank deposit products.
Ask your banker about SDA, UITF, or MF. Just please DO NOT put your all of your life savings in investment instruments. Maintain an emergency fund.
Knowledge is power... but true power comes after we act on that knowledge.