Alternatives to low interest-bearing deposits
Publicado por sam - 30/04/08 a las 04:04:03 pmIf you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
The quiet quandary among savers lately is finding opportunities that provide good returns. Basic bank deposits — although more for parking funds than outright investing — now have near-zero returns. Some banks require a minimum outstanding balance for the depositor to even qualify for interest. For those that still offer some interest, the lowest that I have seen is a rate of about one-tenth of one percent and this is still taxable at 20 percent withholding tax.
At this rate, your monthly return for an outstanding balance of P50,000 comes out roughly to about P3.33 — an amount small enough to miss out among your transactions but big enough to be a nuisance if you try to balance your books before you get your printed statements. The other way of looking at this interest rate is that you have to set aside and keep untouched a balance of P400,000 in your account so that your net interest affords you a small-sized serving of French fries from a popular burger franchise every month. Seguir leyendo Alternatives to low interest-bearing deposits…
