Best Place To Put Your Hard Earned Money If You Are A Filipino OFW

Majority of Filipinos go abroad to work. The average Filipino OFW
Overseas Filipino Workers earns 400 US Dollar Net. Majority of them
probably send 300 US Dollar monthly and save 100 US dollar monthly.

But where is the best place to put that hard earned $100 monthly?

Most Filipino OFW probably will just put that money in a savings bank
to earn interest or some Filipinos who is knowledgeable enough to
realize that time deposit earn more than a savings deposit.

If we look at the top 4 Philippine universal commercial bank
offering savings deposit account services. there interest on
savings deposit is .250% per annum.

Whatever you earn from that .250% per annum will still be subjected to
a withholding tax of 20%

Imagine, your 100,000 pesos deposit will earn you 250 pesos less the
20% withholding tax, that gives you 200 pesos yearly income on your

Putting your 100,000 pesos in a time deposit/certificate of deposit is much
better than putting it in a savings deposit. A time deposit of 100,000 for one
year with a 5% interest will give your 100,000 an income of 5,000 pesos,
less 20% withholding tax, your net income for one year is 4,000 pesos.

The best place to put your hard earned money is in a mutual fund. Most
Mutual fund in the Philippines earn more than the average time deposit
rate of Philippine banks.

So If the average time deposit rate of Philippine bank is 5% yearly, then
expect your mutual fund earning to be above that.

Most bank like BPI offers mutual bank subscription in any of their branch
office. It is worth considering these form of investment vehicle other
than savings deposit and time deposit.


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