Savvy Finance Master: Where should you put your Emergency fund: Traditional Savings Bank Account or High-Yield Savings Account/Digital Bank Account

Sa nakaraang topic, nadiscuss natin ang tungkol sa Emergency fund. An emergency fund is money put aside to cover life's unforeseen situations or events. Ang fund na ito ang magsasalba sa iyo hindi dahil sa luho mo kundi dahil sa mga essential needs or mahahalagang bagay.

Ngunit saan nga ba natin pwede ilagay ang ating emergency fund? Sa Traditional Savings Bank account or High-Yield Savings Account/Digital Bank Account? Tara’t alamin natin and advantage and disadvantage ng mga ito para matimbang natin kung saan nga ba tayo maglalagay ng emergency fund.

Ang emergency fund ay hindi dapat nakasama/nakahalo sa iyong “regular savings account.” Dapat natin ibukod ito para hindi natin magagastos kapag gusto natin magshopping sa mall or online shopping. Ang emergency fund ay dapat lamang gastusin kung ito ay gagamitin sa kadahilanan: Job loss, Unexpected medical bills, auto repair, home repair, etc.

If you want to know saan dapat ilagay ang emergency fund mo, try to consider the list of best options na ishashare ko.

Traditional Savings Bank Account

Ang traditional savings bank account ang pinakafamiliar sa mga pinoy. Madaling gumawa ng savings account sa pamamagitan lamang ng ilang dokumento. Maaari tayong pumunta sa pinakamalapit na physical branch ng bangko na gusto natin o di kaya gumawa thru online.

Advantages of Traditional Savings Bank Account:

You can easily make a savings account by going through a physical branch na malapit sa inyo. Maaari mong piliin ang BPI, Metrobank, Landbank, and BDO.

Madali ka makakapagsimula dito at kung malapit lamang ito sa inyo, may access ka agad kapag may emergency at pwedeng magwithdraw sa ATM o di kaya kung passbook ay magwithdraw mismo sa loob ng bank.

Disadvantages of Traditional Savings Bank Account:

May maintaining balance ang iyong savings account. Depende kung anong account ang ioopen mo. Kalimitan nasa 3,000 to 10,000 pesos ang maintaining balance sa mga traditional bank account. Kinakailangan mo ng amount na ito bago ka makapagbukas ng savings account.

Ang emergency fund mo ay hindi magkakaroon ng malaking interest. Kalimitan sa mga traditional bank ay nag-ooffer lamang ng 0.0625% interest per annum.

High-Yield Savings Account/Digital Bank Account

Ang High-Yield Savings Account o ang mga Digital Bank Account ay nagbibigay ng malaking interest kaysa sa mga traditional bank account. Mas madaling gumawa ng savings account thru digital bank dahil may access ka through installing their app in app store and play store.

Advantages of High-Yield Savings Account

• High-Yield Saving Account is very accessible because you can create a savings account through an online app.
• You can easily withdraw your cash in times of emergency.
• You can get a high interest in your savings account.
• Nagbibigay sila ng iba’t ibang offer at free ATM card.

Disadvantages of High-Yield Savings Account

• At dahil mas accessible and emergency fund mo, it also means na madali mo rin ito maaaccess para gamitin sa non-emergency purposes.
• May mga digital bank account ang biglaang nagmamaintenance bigla sa system at hindi mo ito maaacess basta-basta.

The BEST High-Yield Savings Bank Account you can open now:

• You can open this account through GCash or CIMB Bank app.
• Monthly payout of interest earnings
• INTEREST RATE: 2.6% to 8% per annum
• Maintaining balance: NONE
• You can also get Free LIFE Insurance
• You can sign up easily with one VALID ID.

Below is the list of acceptable IDs:

1.  Driver’s License
2.  Philippine passport
3.  National Professional ID Card - note that we only accept PRC ID issued prior to September 2019
4.  Unified Multipurpose ID (UMID)
5. Postal ID
6.  Voter’s (COMELEC) ID Card
7. Social Security System (SSS) – note that we only accept SSS ID with Date of Birth
8.  Philippine Identification System ID (PhilSys ID)
9.  PhilHealth ID
10. Tax Identification Number (TIN)

• You can open this account by downloading the Seabank app.
• Daily payout of interest earnings
• INTEREST RATE: 5% per annum
• Maintaining balance: NONE
• You can sign up easily with one VALID ID.

Below is the list of acceptable IDs:

1. Unified Multi-purpose ID (UMID)
2. Philippine Driver's License
3. Philippine Identification Card (PhilID) or National ID
4. Postal ID (plastic format)
5. Philippine Passport
6. Professional Regulation Commission (PRC) ID
7. Social Security System (SSS) ID

• You can create maya bank using Maya app or also known as “Paymaya”
• Monthly payout of interest earnings
• INTEREST RATE: 6% per annum
• Maintaining balance: NONE
• In creating a maya account you need to present a valid ID and after verifying your account, you can now create a maya savings account.

Below is the list of acceptable IDs:

Primary ID

1. SSS ID (Digitized, with photo)
2. PRC ID
3. Postal ID (Issued 2015 onwards)
4. Passport
5. Driver’s License
6. UMID
7. NBI Clearance
8. Government Office and GOCC ID (Digitized, with photo)
9. Philippine National ID (PhilSys)
10. IBP (Integrated Bar of the Philippines)

Secondary IDs

1. Senior Citizen Card
2. Police Clearance
3. Philhealth ID (Digitized/PVC or Laminated Cardboard with Barcode)
4. Voter's ID
5. TIN ID (Laminated)
6. Government Service Insurance System (GSIS) e-Card
7. Overseas Workers Welfare Administration (OWWA) ID/ OFW e-Card

The BEST Traditional Savings Bank Account you can open now:

• You can open this using the BPI Mobile app.
• REQUIRED INITIAL DEPOSIT: 1 PESO
• REQUIRED MAINTAINING BALANCE: 3,000 PESOS
• REQUIRED DAILY BALANCE TO EARN INTEREST: 5,000 PESOS
• INTEREST RATE: 0.0925% per annum

• Go to the nearest physical branch to create this savings account.
• REQUIRED INITIAL DEPOSIT: 3,000 PESOS
• REQUIRED MAINTAINING BALANCE: 3,000 PESOS
• REQUIRED DAILY BALANCE TO EARN INTEREST: 5,000 PESOS
• INTEREST RATE: 0.0625% per annum

• Go to the nearest physical branch to create this savings account.
• REQUIRED INITIAL DEPOSIT: 2,000 PESOS
• REQUIRED MAINTAINING BALANCE: 3,000 PESOS
• REQUIRED DAILY BALANCE TO EARN INTEREST: 10,000 PESOS
• INTEREST RATE: 0.0625% per annum

TIPS: Gumawa ka ng savings bank account sa traditional bank and high-yield savings banks account. Diversify your money and don’t put it in one basket. Para sa akin, mas mabuti kung may cash on-hand ka rin for emergency fund hindi lamang traditional and high-yield savings bank account.