Banking and Pinoys

  In my previous post, I’ve mentioned about how we can start saving with the use of makeshift (or even real) piggy banks. For today’s post I’ll introduce banking. Don’t worry I won’t bore you with accountancy topics. So please do not type “facebook” in your address bar. You’re going to love this post.

 Why do we open accounts in banks? Banking actually is a process of “Lending” your money, the bank on the other hand generates a profit by channeling the deposit thru various lending activities generating interests for their profit. Of course your money gets an interest but would depend on the type of the account you’ve registered with the bank. If you’re going to open a savings account interest will be from .3750- 2.00% ( statistic provided by BDO) depending on the amount you’ll save. Why do I discuss this anyway? Well, according to a recent survey by BSP last 04/18/2012,8 out of 10 Filipino’s have nobank accounts and MOST do not have enough cash for emergencies. Also, the survey added that based on the respondents their families does not foresee a need for a savings account because they DO NOT have enough money to deposit or the deposit requirements are too high. Lastly the average cash on hand of Filipino families that they can use for emergencies would stands at 1,681 pesos.

 This [ alarming] fact can be attributed to the insufficient income, lack of access to banks, and the high tendency to SPEND than SAVE greatly influence the survey as per BSP.  

 This habit is NOT a way to walk like a MILLIONAIRE, specially the last reason cited by BSP which is the tendency to spend more above their means. As a reader of this blog you avoid poverty and WALK LIKE A MILLIONAIRE. It pays to “lend” your money in a bank. In my next post I’ll be discussing the types  of banking services you can take advantage of and their corresponding interest. But of course, you can always consult the bank nearest you. Always remember Kin Hubbard’s gem:

“ The safest way to double your money is to fold it over and put it in your pocket.”

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( photo from statadaily.wordpress.com)