Ways to grow your savings faster than a regular savings account

Savings are great, and putting your savings in a bank and managing your money wisely is essential for financial security. After all, savings accounts provide a safe and secure place to store your money while earning interest. They offer easy access to your funds and are insured by the Philippine Deposit Insurance Corporation (PDIC) up to PHP 500,000, ensuring your money is protected. This makes them a reliable choice for safeguarding your hard-earned money.

But what if there's a way to make your grow savings faster? While traditional savings accounts are secure, they typically offer lower interest rates. Exploring other financial instruments can help you achieve higher returns. These options allow your money to grow more quickly, helping you reach your financial goals sooner. By diversifying your savings, you can enjoy financial growth and make the most of your financial resources.

Increasing your savings can be achieved more effectively by leveraging various financial instruments available in the Philippines. Here are some key options to consider:

1. High Interest Savings Accounts

Also, called high-yield savings accounts offer higher interest rates compared to regular savings accounts. These accounts are usually offered by digital banks or digital arm of established banks, which can give competitive interest rates, allowing your savings to grow faster over time. These accounts are also insured by the Philippine Deposit Insurance Corporation (PDIC), ensuring the safety of your funds up to PHP 500,000.

To choose a high-yield savings account, look for one with a high interest rate (APY) to grow your money faster. Avoid accounts with fees and check how easy it is to access your funds. Look for low or no minimum deposit and balance requirements. Finally, consider if the bank offers other useful financial products. This way, you can maximize your savings with minimal hassle.

2. Time Deposits

Time deposits are fixed-term investments offered by banks that provide higher interest rates than regular savings accounts. You commit your money for a specific period, ranging from a few months to several years, and in return, you receive a guaranteed interest rate.

When choosing a time deposit to grow your funds, consider the interest rate offered, as higher rates mean more earnings. Check the term length and ensure you can commit to it without needing the money, as early withdrawals often incur penalties. Look for low or no fees to maximize your returns. Compare the minimum deposit requirements and choose one that fits your budget. Finally, ensure the bank is reputable and insured to protect your investment. This way, you can safely grow your savings with a time deposit.

3. Investment-linked Insurance

You can grow your savings faster with investment-linked insurance policies, which combine life insurance with investment opportunities. Part of your premium goes towards life insurance, while the rest is invested in various funds like equities, stocks and bonds. This dual structure offers both protection and the potential for higher returns. It also allows you to build and customize your investment portfolio based on your risk tolerance and financial goals, making it a flexible option for growing your funds. Professional fund managers handle the investments, making it easier for you to benefit without needing to be an expert.

An insurance plan like FWD Manifest which gives you strong life protection and smartly grows your wealth or FWD All Set and All Set Higher, a one-time pay insurance offering lifetime protection and global investment puts your money to work all over the world by investing in our pick of global funds or choose from a set of funds that suit you best. These plans let you invest money with minimum market knowledge and optimal opportunity for ROI. It also comes with multiple benefits and rewards too that help fast track your financial plans.
You can view more investment-linked insurance solutions here.
You can check out the list of available local and global funds here.

4. Pag-IBIG MP2 Savings Program

The Modified Pag-IBIG II (MP2) Savings Program is a government-backed savings scheme that offers higher dividends than regular Pag-IBIG savings. It has a five-year maturity period and is open to all active Pag-IBIG members. The MP2 program is a low-risk investment option with attractive returns, making it an excellent choice for boosting your savings.

To apply for the Pag-IBIG MP2 savings program, start by ensuring you are an active Pag-IBIG member. You can apply online through the Pag-IBIG website by filling out the MP2 Enrollment Form with your personal and employment details, selecting your preferred savings amount, term, and payment method. 

5. Personal Equity and Retirement Account (PERA)

PERA is a voluntary retirement savings program that provides tax incentives to encourage long-term savings. Contributions to PERA are invested in various financial instruments, such as mutual funds, UITFs, and government securities. The program offers tax-exempt investment income and withdrawals, making it a tax-efficient way to save for retirement.

To apply for a Personal Equity and Retirement Account (PERA), visit a participating bank like BDO, BPI, PNB, Metrobank, or Landbank. Fill out the PERA application form they provide and submit the required documents, such as valid ID and proof of income. The bank will guide you on how to fund your account and manage your investments. 

Learn more about FWD investment-linked insurance

If you want to know more about FWD investment-linked insurance, book a free consultation with an FWD financial advisor.