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 deposit.

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.