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For millennials and GenZs: here's a quick round up of various entities where you can wisely invest your 13th-month pay, Christmas bonus, and even your reward points that might expire in the next couple of months

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.

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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.

Check out also SSS P.E.S.O. fund and GSIS General Insurance programs to maximise further your regular contributions' potentials and coverages.

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Insurance and investments

You may have often heard the phrase that when you buy an insurance policy while you are young, you would earn more in the end. Well, that is partly true as it depends on what kind of policy you acquire. There is what is called a Whole- or Ordinary life-type of permanent insurance policy where you pay a certain amount of premium for a specific time period and your beneficiaries will receive a set amount of money at the time of your death.

But there is also other types of insurance policy that offer more flexibility than that like the Variable Universal Life (VUL) policy where you are also protected with a savings account that can be invested in stocks, bond, and mutual funds. What's certain about that old phrase is that when you start buying insurance policies at an early age, your monthly premiums would not increase annually and that is one way to secure your money in spite of the rising inflation rates. If ever the terms and conditions change in the next ten to twenty years, that would definitely be troublesome. But still, you need not worry as when that time comes, the money you have been investing in your VUL policy every month would have yielded more than its initial value.

Read also: Some of the Country's Leading Life Insurance Firms on the COVID-19 Pandemic Crisis

For insurances and investments, you may check out the products of AXA Philippines, Pru Life UK, and Sun Life, to name a few. Talk to a financial advisor to find out which policy suits you best. If you want to be more in control of your insurance policies and you opt to not wait for decades for it to mature, you might want to check the sachet insurance policies of SingLife available at GCash's GInsure.

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Stocks, bonds, and other investments

A recent study has said that although millennials and GenZs are young consumers, they are also more interested in trading and investing than other generations and this may have been triggered by the financial setbacks that we have experienced during the pandemic. In the Philippines, a large number of stock trading companies have been offering their services for years already and offer to help you grow your money with just a minimum of PHP5,000. Few of the most trusted in this sector are PhilStocks, COL Financial, and those bank-affiliated companies like First Metro Securities of Metrobank, BDO Securities Corp., and BPI Trade. If you also want to be more in control and invest for as low as PHP50, check out GCash's GInvest feature in its app.

Read also: The Philippines' Top Conglomerates: Get to Know Bluechip Stocks to Invest

Do not forget to donate

This may not be your idea of investing financially but as citizens of the world, we all must take part in investing for a better future for our society and environment. With just a few taps and clicks through your phones, you may easily reach out to various relief efforts inside and outside the country and for various causes.

Check out GCash's GForest where you can plant trees by using the reward points you've earned from your transactions and connected fitness app. Your reward points also from Grab may be used to donate money to various relief efforts, and the same goes with Paymaya.

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