Chinabank Saving Opportunities

I just opened a normal ATM account in Chinabank two months ago. From my fellows, i learned that they have an online banking system which really works. There you can check your balances and pay bills. As i was surfing their website, I saw several saving opportunities that can earn savers like you and me higher interest rates.

You can check their website http://chinabank.ph and click on savings. I am keen on opening a Diamond Savings which is just like time deposit but it's called another name. The interest rate is around 4% for 3 months but my mom, who is an accountant says that its per year.

Here is the chart from their website:

Diamond Savings

Get better value for your savings with the Diamond Savings Account - a special deposit account that earns interest comparable to investment rates.

Key Benefits Initial Placement Requirement P 50,000 Amount in Peso Interest Rate 1 Month 2 Months 3 Months 50,000 – 199,999 3.500% 3.750% 4.000% 200,000 – 499,999 3.750% 4.000% 4.250% 500,000 – 999,999 4.000% 4.250% 4.500% 1 Million & Up 4.250% 4.500% 4.750% (subject to 20% withholding tax) Effective October 5, 2007

I am not really sure so I am going there with my mom sometime this week. This will be my first time to open such account and I hope this experience will shed some light on us soon.

Time Deposits

Time deposits are the most commonly known "investment" in the Philippines. The logic behind this is that you put your money into a long term savings account, meaning you can't touch your money for a certain period of years. Nowadays, there are already 360 day terms for those who can't afford to let their money stay in a bank for too long. Interests vary from 3% to 7%. Although very few banks offer a very high interest for time deposits. The longer your money stays with the bank, the higher the interests will become.

This is risk-free since most of the interest rates are fixed. The only risk is if you deal with smaller banks that offer very high interest rates that are very suspicious. Just be sure to research first before putting your money in their basket. Having a Time Deposit is like lending your money to the bank and the interest is like the premium they are paying you for lending some to them. Some say that when a bank badly needs money, interest rates tend to be higher.