In my previous post, I discussed about benefits of investing money in time deposit over putting all of it in savings account. Time deposit is famous among Filipinos and among US citizens because I think it is one of the safest investments since it is insured by the government up to certain amount.

Time deposit also guarantees sure earnings from cash you invested unlike stock market and mutual fund and you are sure to get back the money after a certain period normally 30 days, 90 days, 180 days or 1 year . The thing is you need to choose wisely the bank you will invest. Established banks like BPI, BDO, Metrobank and other PSE listed banks will definitely be the best choice.

In the US, time deposits or commonly known as certificates of deposits are maximize by using a strategy called “laddering.” It means spreading your money in CDs with different maturity dates, so that you get regular income from them. By doing this, you’re not prone to withdraw your time deposits prematurely and suffer from the penalties fees.

Below is the list of time deposit interest rates for different banks in the Philippines as of July 2010.

For P10,000-below P50,000:

BPI : 1.75% (35 days) ; 1.75% (63 days); 2.125% (91 days); 2.375%(183 days); 2.375% (364 days)

BDO: 1.875% (30 days); 2.75% (180 days); 2.875% (360 days)

Metrobank : 1.25% (30 days); 1.75% (90 days); 2% (180 to 364 days)

PSBank: 0.5% (30 days); 0.5% (90 days)

For P50,000-below P100,000:

BPI –- 2.0% (35 days); 2.0% (63 days); 2.25% (91 days); 2.50%(183 days); 2.50% (364 days)

BDO –- 2.25% (30 days);  3.25% (180 days); 3.375% (360 days)

Metrobank – 1.5% (30 days); 2% (90 days); 2.25% (180 days to 3.64%)

PSBank –- 1% (30 days to 90 days)

For P100,000-below P500,000:

BPI -– 2.125% (35 days); 2.125%(63 days);  2.375% (91 days); 2.625%(183 days); 2.625% (364 days)

PSBank –- 3.5% (30 days) –- 2.75% (90 days)

BDO –- 2.5% (30 days) –- 3.25% (180 days) -– 3.375% (360 days)

Metrobank — 2% (30 days) –- 2.5% (90 days) -– 2.75% (180 days to 364 days)

For P500,000 to below P1 million:

BPI –- 2.25% (35 days); 2.25% (63 days)

PSBank –- 3.75% (30 days) -– 3% (90 days)

BDO –- 2.5% (30 days) -– 3.25% (180 days) –- 3.375% (360 days)

Metrobank –- 2.25% (30 days) –- 2.75% (90 days) –- 3% (180 days to 360 days)

For P1 million to below P5 million:

PSbank –- 4% (30 days) –- 3.25% (90 days)

BDO –- 3.25% to 3.5% (30 days) -– 3.625% to 3.75% (180 days) –- 3.75% to 4% (360 days)

BPI –- 2.875% (30 days) -– 3.125% (90 days)

Metrobank -– 2.75% (30 days) –- 3.25% (90 days) –- 3.75% (180 days to 360 days)

Disclaimer: Banks change their time deposit interest rate frequently so it would be better to verify it to the bank.

Here are some reminders before you invest your money in time deposit:

1. Study and select the bank with the best interest rates.

2. Don’t invest all your money to time deposit, leave for emergency funds in your savings account.

3. Note that BPI has the best rates for deposits in the lower amounts but at P500,00 level, its rates are taken over by PSBank and BDO.

What to Read Next:

1. Best Banks in Philippines
2. Time Deposit or Savings Account
3. BPI Time Deposit Interest Rates

Union Bank of the Philippines is  a partnership among the Aboitiz Group, Insular Life and Social Security System of the Philippines.  It started operations in 1981 and became a commercial bank by January 19, 1982. In July 1992, UnionBank was granted the license to operate as a universal bank.

In 2002 & 2003, the bank was recognized as among Asia’s best companies by Euromoney and Finance Asia. UnionBank is also the country’s only bank to make it to the list of the world’s 25 soundest banks for four consecutive years by The Banker of London.

By applying a Union Bank account, you can bank in different ways most accessible and convenient for you. You can bank by going to the your bank directly, through ATM machine, mobile banking or online banking.

Union Bank offers products and services for personal use, business or corporate. The bank services includes savings, checking, time deposit, credit card, remittance services and investment funds.

Union Bank also tie-up with PayPal so that you can withdraw money from your PayPal account to your Union Bank account. In other way, you can fund your PayPal account with money through Union Bank.

If you are looking on how to open an account at Union Bank Philippines, you may follow the guide below.

1. Prepare all the necessary requirements which you can see below.

1.1 Two 1×1 photo ID

1.2 Billing statement such as Meralco, Maynilad or Manila Water bill, credit card bill, phone bill and bank statement of account

1.3 Valid and recent ID such as PRC ID, SSS ID, GSIS ID, Driver’s License, Postal ID, Passport or any ID issued by government agencies

2. Choose and visit the Union Bank branch of your choice. Select the branch easily accessible and most convenient for you to go.

3. Upon arriving at the bank, proceed directly to the new account desk. Tell the bank employee you want to open a new bank account.

4. Complete all application forms and signature cards that will be given to you.

5. Pass all the requirements, application forms, signature cards and the initial deposit for your new account. Normally, the initial deposit ranges from P5oo-P10,000 depending on the type of your savings or checking account.

6. When application is completed, claim your ATM card or passbook after 4-5 banking days to the branch where you open a bank account.

Basically, opening a new bank account is not hard once you are prepared and you know the requirements and procedures. Union Bank can be one goo choice to open a new bank account since it has may services you can’t found in other Philippine banks.

What to Read Next:

1. Requirements for Opening a Bank Savings Account
2. How to Open a BDO Bank Account
3. How to Open Metrobank Savings or Checking Account in Philippines

Sending money to the Philippines is sometimes stressful especially for the first-time OFW. It’s hard to choose where to remit your money because you don’t know how or there’s limited options. Remittance to the Philippines became easier these days compared ten years ago. Many financial institutions like banks and remittance company offer wide range of services for remittance.

When I arrived here in Korea 3 years ago, I encountered the same problem. I don’t know where to send money to the Philippines. Although there are many banks here that I can used to remit money, my problem is the procedure and the expensive remittance fee. So at that time, I really search where is the best deal for remittance to Philippines.

Guide and tips really help if you’re really a first-timer. This article outlines some guides and tips on sending money to the Philippines. Just read the article and apply it if it is suitable in your location. One remittance service can be available in one country but may be not available in another country.

Basically, sending money anywhere in the world involves money transaction to banks or financial institutions. Thus, it is very important that you’re sure it is legitimate and not scam.

Where to Send Money to Philippines?

Sending money or remittance to Philippines from other country can be done in different ways. You can remit money by the following methods.

1. Bank to bank wire transfer

I think this way of sending money to Philippines is the most popular, safest and fastest way. I personally use this method for more than 3 years and I only encountered one problem but it was solved quickly. Basically, you apply for remittance to your bank where you are located. There is an application form for remittance where you will put all the details of your bank in the Philippines and the person who will receive the money.

This method is just like instructing your foreign bank to transfer a certain amount of money to your bank in the Philippines. It may take two days before you receive your money. In my case, it took only one day or less than 24 hours before I received my money through BPI. I know that money has been credited to my bank by checking my account through online banking. So it is also important to apply online banking when you apply for a bank account.

2. Western Union

Western Union is a financial services and communications company based in the United States. It has a number of divisions, with products such as person-to-person money transfer, money orders, and commercial services. As of May 27, 2010, the company has more than 410,000 Western Union agent locations in over 240 countries and territories.

It has many branches around the world so it is one of the most accessible ways to send money anywhere in the world. Normally, Western Union can be seen also in almost all banks.You need to pick up your money in Western Union branch near your place.

People without bank account usually use Western Union for remittance to the Philippines. This is a good thing because not all people have also access to banks. Even if you don’t have a bank account, you can still get the money from your relatives abroad.

The down side about Western Union is that it has  a higher remittance fee than banks.

3. Door-to-door money remittance

Door to door remittance is a classic way of sending money to Philippines. When I was a child, my father worked in Saudi and he send money to Philippines by this method. At that time, there are few banks and remittance company so the preferred way is by door to door.

4. PayPal

PayPal is an e-commerce business allowing payments and money transfers to be made through the Internet. PayPal serves as an electronic alternative to traditional paper methods such as checks and money orders. It is a subsidiary of eBay Inc.

PayPal is also a secure online payment when your purchasing anything in the Internet. You can also send money to Philippines via PayPal if you have created an account. You cannot send money or pay purchases if you don’t have a PayPal account.

There is a limit of money you can send or pay depending on the type of your account. If you don’t want to use your credit card every time you make a purchase online, PayPal is one option to use.

It has also higher fees when sending money than most banks charge. It’s the reason only few people use PayPal when remitting money to the Philippines.

5. Xoom

Xoom is a global money transfer service. Unlike PayPal, Xoom only has money transfer service, you can’t purchase online using Xoom.

In sending money to the Philippines, you can use Xoom and your relatives can pick up the money, withdraw money from bank deposit or by door-to-door service.

Xoom partnered with these  Philippine banks and money transfer companies such as M.Lhuillier, One Network Bank, MetroBank, SM Forex at SM Malls, Bando de Oro, Card Bank, Bangko Kabayan, Signed and Delivered, BPI, PNB, Cebuana Lhuillier and Globe Cash.

Sending money to the Philippines is very important to be safe and secured because it is your hard-earned money. You may remit money to Philippines by bank to bank wire transfer, door-to-door money transfer, Western Union, PayPal or Xoom.

What to Read Next:

1. BDO is No.1 in OFW Remittances
2. Top Philippine Banks for OFW
3. Guide on Opening a Union Bank Philippines Account

What is  a financial statement? In layman’s term, financial statement shows you where a company’s money came from, where it went and where it is now. Reading a financial statement can be hard to some people but once you learned the basics of financial statement, it will be easy just like reading an electricity, credit card bill or bank statement of account.

Actually, it isn’t difficult. If you know how to read a credit card bill, you can learn to read basic financial statements. Basics are not hard to learn, you only need a bit of patience.

So the question is: Why do you need to study financial statement? A financial statement is a documentation of the company’s financial status or condition. It is very helpful for an investor because it will determine if a company is a good investment or not.

A financial statement will tell you whether a company has many assets or many liabilities. It is designed in such a way it is easily understand by common people who are not inclined to complex financial accounting or calculations. It is really simple and usually it is in tabulated form just like any kinds of billing statements.

A financial statement can be categorized or divided into four parts: balance sheets, income statements, cash flow statements and statements of shareholder’s equity. Balance sheets show what a company owns or its assets and what it owes or liabilities at a fixed point in time for example in a fiscal year. Income statement  is a company’s financial statement that indicates how the revenue is transformed into the net income.

In financial accounting, a cash flow statement, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities. The fourth financial statement, called a statement of shareholders’ equity, shows changes in the interests of the company’s shareholders over time.

What to Read Next:

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How do you earn from stocks? One way to earn from stocks is through dividends paid to shareholders of the company. Another is through appreciation of the stock price of the company you bought. Dividends can be in the form of cash or stocks. Dividend will be automatically added to your portfolio through your stockbroker when the payment date  for the dividend has reached. When you bought dividend stocks or stocks that pays dividend, you will earn a passive income from the dividends paid.

When a company makes a profit for a certain period, just say in a year, a company usually share the profit to its shareholders by paying dividends. If the company does not pay dividends even if it makes a profit, I think it is not a good company to invest in. This kind of stock is what we call growth stock. Meaning, the company use the profit to invest more on other projects hoping the stock price will appreciate.

Dividend is a form of passive income. The dividend stock will always give you income as long as you hold the stock. So I think it is advisable to concentrate your stock investments to stocks which pay dividends if you’re goal is for long-term investment.

In conclusion, a company pays dividend because it share its profit to stockholders in the form of cash or stocks.

What to Read Next:

1. Why Invest in Stock Market?
2. Common Terms in Stock Market
3. What Can I Buy in the Stock Market?

Before going to abroad, an OFW or his/her relatives must open a bank account for remittance purposes. Sometimes it’s hard to decide where to open a bank  account since there are many banks you can deal with. Actually, there are really many banks in the Philippines but I listed some of the most trusted, customer-oriented and best banks that an OFW can use to remit their money to the Philippines.

1. BDO

BDO tops the list for Philippine banks that OFW choose. According to Bangko Sentral ng Pilipinas, BDO is the No.1 bank for OFW remittances for 2009. Aside from different awards, BDO has many services that caters for OFW such as the Kabayan Savings account which an OFW can open without maintaining balance as long as the OFW will remit his/her money continuously to BDO. It also offers Internet, mobile or phone banking which I think very useful for OFW.

2. BPI

Bank of the Philippine Islands (BPI) was named by Finance Asia the best cash management bank in the Philippines for 2009. I personally used BPI for my remittances to the Philippines. I think BPI is one of the best in terms of customer care and speed in responding to client’s problems.

3. Metrobank

Metrobank is one of the most established banks in the Philippines. It is also listed in Philippine Stock Exchange as a public company. Similar to BDO and BPI, Metrobank offers also Internet, mobile and telephone banking. It has also different branches abroad just like in US, Middle East, Korea and other countries. Many OFW choose Metrobank because it has many branches around the country.

4. Chinabank

China Bank is Philippines’ fourth largest universal bank by market capitalization. China Bank provides a wide range of banking services through 248 branches and 388 ATMs nationwide. It is also a member of BancNet, a popular bank network in the Philippines. One advantage of China Bank is that you can transfer money to other BancNet banks through Internet with a small transfer fee. I also have a bank account in China Bank but I wasn’t able to get my Internet banking password before I leave the Philippines last January.

5. Union Bank of the Philippines

Union Bank of the Philippines or more commonly known as Union Bank is one of the largest banks in the Philippines, ranking seventh in terms of assets after its successful merger with smaller competitor International Exchange Bank. It is one of the most stable Philippine banks and is a public company listed in PSE. OFW can remit money to the Philippines through Union Bank by three different ways: (1) bank to bank, (2) through remittance partners and (3) via PayPal.

Choosing a bank for remittance purposes depends on your needs. Almost all banks offer same services but you need to determine those which are customer-oriented and responds to client’s problems quickly.

What to Read Next:

1. BDO is No.1 in OFW Remittances
2. How to Open Metrobank Savings or Checking Account in Philippines
3. Money Remittance to the Philippines

Mutual fund is one of the best investments available nowadays. When you invest in mutual funds, you will just wait to make your money grow and until the time you need the money you invested. Usually, people invest their money in mutual fund for several reasons such as for retirement, college expenses and for emergency fund. In this article you will know the procedures on how to invest in mutual fund.

Mutual Fund Investment Procedures

1. Get a copy of prospectus of the mutual fund and study it.

In any kind of investing, you need to study, study and study. So what is a prospectus? In the prospectus, you can learn useful information about the mutual fund and the mutual fund company. You will know who manages the fund and most important, the present and past performance of mutual fund. You can get a prospectus in the website of mutual fund company you want to invest in.

2. Fill out an account opening form  and investment application form of the mutual fund of your choice.

When I invested in mutual fund, I went directly to the office of my mutual fund in Makati. Its very easy, it took only less than an hour to finish. However, even if you’re abroad or in far away places in the Philippines, you can  still invest by sending all requirements via post office or private courier. My friend invested in ALFM even he’s in South Korea.

3. Ready all requirements.

a) For individual (personal) accounts, ready photocopies of two (2) valid IDs such as company ID, SSS/GSIS ID, Driver’s License, Passport or any government ID.

b) For corporate accounts, ready a copy of the following:
Articles of Incorporation and by-laws
SEC Certificate of Registration
Secretary’s certificate / Board resolution, authorizing the investment
Secretary’s certificate on the percentage of ownership/capital stock held by non-Filipino shareholders

4. Go to the office of your mutual fund company to pass your requirements and application forms or you may send it to couriers. It will be better if you can call the mutual fund office so that you may know other requirements or procedures. Basically, the procedure listed here is common to all mutual fund companies.

5.  Deliver your payment to the mutual company office, or deposit directly to the fund’s account. If you’re paying through checks, it should be made payable to the fund of your choice.

6. The mutual fund company will issue a receipt and statement of account where you can see the number of shares  you bought and its corresponding net asset value per share (NAVPS).

Basically, opening or buying a mutual fund involves careful study  and understanding of the fund. Study and research first before you invest.

What to Read Next:

1. List of Mutual Funds to Buy
2. Where to Invest Your Money?
3. List of Top Mutual Funds in the Philippines

The Philippine Savings Bank commonly known as PSBank or PSB, is a savings bank based in the Philippines. It is a subsidiary of Metrobank and is the second-largest savings bank in the Philippines. PSBank is a member of BancNet, a Philippine-based interbank network connecting the ATM networks of more than forty local banks. It is considered the largest interbank network in the Philippines in terms of the number of member banks and annual transactions.

When opening a savings or checking account in PSBank, remember to bring complete requirements for smooth processing and faster approval of your bank account. It is also recommended to apply for Internet, mobile and phone banking at the same time when you apply for PSBank account. Internet or phone banking is a good service offered by most of the banks since it will give you access to your account anytime and anywhere as long as there is an internet connection. You can also pay your bills like electricity bills online if you have Internet banking account.

In order to open savings or checking account in PSBank, it is recommended to follow the below procedures.

1. Choose the PSBank branch near your residence or place of work.

2. Remember to bring complete requirements when opening PSBank account.

3. Have money for initial deposit. For ATM and passbook savings account, initial deposit is P2,000 and P5,000 respectively. For peso checking account, minimum initial deposit is P5,000.

4. Proceed to new account desk upon arriving in the bank. Bank officer will give you application forms; fill it up with the required data completely.

5. When finished filling up all forms, give initial deposit together with the application forms and requirements to the bank officer for checking and processing.

6. When application is approved, get your  ATM or passbook  after 5 banking days had passed or you may ask the bank officer when it will be available to be sure.

A savings account is a good tool to save money safely. Opening a PSBank account  is easy if you have all the requirements so don’t forget to bring all.

What to Read Next:

1. How to Open a BDO Bank Account
2. How to Apply for RCBC Savings and Checking Account Philippines
3. How to Open Metrobank Savings or Checking Account in Philippines

Land Bank of the Philippines is a government-owned bank which is one of the biggest banks in the Philippines and ranks among the top five commercial banks in the country in terms of deposits, assets, loans and capital. Land Bank is also an official depository bank of the Republic of the Philippines.

Different from most Philippine banks, Land Bank has many rural branch networks that services many rural sector customers in places where banking is either limited to rural banks or is nonexistent. That is why it is not surprising you can see it in almost all places in the Philippines even the farthest towns or provinces in the country.

Land Bank has online banking which you can use to access your account anywhere provided you have Internet connection. It is better to apply also for an online banking once you open a bank account in Land Bank.

When opening an account you need to bring complete requirements in order to avoid hassles and for smooth processing. The requirements in opening a savings account in Land Bank will be the following.

For Individual Account:

1. At least two (2) valid IDs such as: New Social Security System /Government Service Insurance System ID, Driver License, Company ID, School ID, Passport, Professional Regulations Commission ID, Postal ID, Marriage contract (original copy), Credit Card of a Reputable Company
2. Two (2) copies of most recent 1 x 1 ID Photo
3. Proof of Billing
4. Tax Identification Number (TIN)

For Single Proprietorship:

1. Registration of Business Name with Department of Trade and Industry logo
2. Original Application for Registration
3. Two (2) valid IDs of signatory

For Partnership:

1. Articles of Partnership
2. Certificate of Registration with SEC
3. Agreement on the extent of authority of each partner
4. Two (2) valid IDs of signatories

Opening a savings account in the bank it will be easy if you have the complete requirements that is why it is very important to bring all once you decided to go to the bank.

What to Read Next:

1. Requirements for Opening a Bank Savings Account
2. How to Open a BDO Bank Account
3. How to Open Metrobank Savings or Checking Account in Philippines

Today when I checked my Spam email in my Gmail account, my attention was caught by an e-mail saying that I won an international lottery. Thanks to Gmail for filtering unwanted e-mails just like this one. Actually, there are many instances I received this kind of scam email but I think this one is worth sharing. One of the goals of this blog is to provide free financial education to all readers and visitors so that they can avoid numerous financial scams circulating in the Internet. Below is the copy of e-mail. If you received this email, just ignore and delete it.

Attention: Lucky Winner,

We wish to inform you that your email address won 550,000.00 Euros in an
International Award Prize promotion on July 27, 2010 .For claim of award
prize contact

Mr. Luis Gonzales
Tel: +34-672-520-303 begin_of_the_skype_highlighting              +34-672-520-303      end_of_the_skype_highlighting
Email: llibertysl@aol.com

Batch Nr: 498 Ticket Nr: 898 Ref Nr: BD-840

All winnings must be claimed not later than August 5, 2010, thereafter unclaimed
funds would be included in the next stake.

Yours Sincerely,

Mrs. Anissa Morales.

In order to pin point scams, you need to know what a scam is. A scam is one which is:

1. Too good to be true

2. You win but you don’t buy or bet tickets

3. Requires you to pay money first before they give you your the prize

4. Google say it is a scam – Use Google to search related topics about the scam

5. It came from an unknown person or source

In order to combat any form of scams, we need to learn financial education. If you want more knowledge about financial education, just subscribe to this blog by entering your e-mail above.

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