It might be tempting to spend your savings and bonuses this holiday season as sale promotions are everywhere, as well as parties you need to attend. But our wiser selves would rather invest the money we've earned into something that would be more beneficial in the long run. Here's a list of investment ideas to consider before the year ends.
Save it in the bank with higher interest rates
You may be wondering why your savings account barely survives the year or even the month. One thing you should check on is the annual interest rate of what you could earn. Banks that have high-interest rates per annum tend to be the digital ones like ING or CIMB. They range their rates from 2.5 to 4 per cent which varies depending on if there's a promotion or not but usually, it just falls on 2.5 to 2.6. This is because digital banks have lesser expenses like personnel or physical offices. Moreover, as internationally recognised banks, they have a lot of potential for growth and can be used anywhere you go by simply using your phone. There is also a feature in the financial service mobile app GCash that is called GSave which is a savings account powered by CIMB that can be connected to your GCash account and could turn your reward points (GCash coins) from your digital piggy bank to actual money. With GSave, you may also easily deposit or withdraw money, but the latter option might be a disappointment as GSave also has a 2.6 per cent annual interest rate that you should maximise.
For both employed and self-employed young professionals, you may be familiar with GSIS or SSS and Pag-IBIG contributions that usually eat part of our monthly earnings. But did you know that through these three institutions, you do not need to wait for your retirement age to fully maximise your earning's potentials?
Pag-IBIG has Regular Savings and Modified Pag-IBIG II (MP2) Savings programs that any Pag-IBIG member can use. The former is where your Pag-IBIG contributions go to and when you upgrade it to save more through your employer, you may request dividend earnings after 20 years since you started your membership with Pag-IBIG or on your retirement age. The latter, MP2, is more aggressive than the previously mentioned savings program with its dividend rate that may reach up to 8 per cent. With MP2, you may choose to set aside 500 pesos or higher for your monthly contribution or opt for a one-time savings of your generous lump sum. The MP2 Savings only has a five-year maturity and you may receive dividends immediately after or apply for another set of MP2 Savings.