I think that I am such a regular customer of BPI and its subsidiary bank, BPI Direct. It should be noted that I am in no way receiving any special treatment or incentive for including them in my blog posts. I am just particularly satisfied with their services.
Last October 24, I started a BPI Direct Time Deposit account with the term of 35 days. The amount is not that big and the term is not that long, so you might be wondering why I did this. This is just a back-up for my emergency fund.
I had the plan of using compounded interest to my advantage.
How? I chose the option to “Rollover both principal and interest upon maturity”.
What did that mean?
This simply meant that compounded interest will be in action. Let’s say I put P10,000 and get roughly P10 in interest. If I choose to have another term of 35 days, my principal will not only be P10,000 anymore, but P10,010!
My interest will also be gaining interest.
Yes, I know, how about inflation?
We all know that to be able to get high returns, we need to invest in high-risk products. Thus, we tend to lose money on the process. That is another story.
This specified amount is for emergencies, thereby, I cannot afford to risk it just to get high returns.
What about liquidity?
Again, this is a back-up for my emergency fund.
This means that I already have an emergency fund. In the unfortunate event that it is not enough, then I will have no other choice but to withdraw this one.
Think of it as a security blanket of another security blanket.
Any violent reactions? Motivated comments? Feel free to comment below.
If you find this post helpful, please SHARE it to your friends via the Sharing options below. Who knows, they might like it as much as you do. 🙂 Thank you, awesome people!