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Don’t just save money, save it wisely!

Your cash today will have a smaller value in the future if you don’t guard against inflation.

It pays to save and keep some money for the future — you’ll be prepared and won’t need to borrow when unexpected emergencies come up, and you’ll have enough to make that long-awaited purchase for a car or a similar asset you’ve long desired.

But while it is good to have cash available at all times, it is not wise to hold very large deposits. Experts say doing so is a misapplication of resources.

When cash is not king

To most businessmen, cash is king but even the most successful of them do not maintain very large deposits of cash. Most likely, their wealth will be spread out in various assets, from stocks to bonds, mutual funds, real estate, and finally, cash deposits at a smaller percentage compared to the other asset classes. Here are at least two reasons why their cash deposits are not that substantial:

Metrobank’s Investment Products

Metrobank is the largest Philippine bank in terms of assets and overseas presence. The bank's total capital funds on June 30, 2006 stood at P57.3 billion. It has a combined network of over 800 local and international branches/offices, remittance offices and subsidiaries in the Philippines and around the world. For more details about the Metropolitan Bank and Trust Company, read the Metrobank Overview article.

Following is a summary of investment products offered by Metrobank.

Treasury Services

Purchase & Sale of Government Securities

As an accredited Government Securities Eligible Dealer (GSED), Metrobank offers Treasury Bills, Retail Treasury Bonds, or Fixed Rate Treasury Notes (FXTN) for tenors ranging from 3 months up to 7 years. Minimum investment amount is P1,000,000.

Purchase & Sale of USD Government Securities

Metrobank is an accredited dealer of US dollar-denominated Philippine Government Securities for all tenors. Minimum amount for investment is US$50,000.

Unit Investment Trust Funds (UITFs)

Metrofund Starter

A UITF investing in a diversified portfolio of high-yielding fixed income securities.

Fund Classification	– Intermediate Bond
Min. Initial Participation	– Php 50,000
Min. Additional Participation	– Php 50,000
Maintaining Balance	– Php 50,000
Investment Horizon	– At least 1 year
Holding Period	– 30 days
Early Redemption Charge	– 50% of income
Trust Fee*	– 2.0% p.a. based on NAV of the Fund
Other Fees	– 0.015% p.a. Custody Fee
Applicable Tax*	– 20% Final Withholding Tax
Dealing Day	– Daily up to 12:00NN
Redemption Settlement Date	– Next banking day from date of redemption
Benchmark	– 91D Mart1 T-Bill Rate
Valuation	– Marked-to Market

Metrobank Philippines – Metropolitan Bank and Trust Company

The Metropolitan Bank and Trust Company (PSE: MBT), commonly known as Metrobank, is the largest bank in the Philippines in terms of assets and is also the largest Philippine bank in terms of overseas presence. (Update: As of 2008, Banco de Oro or BDO has overtaken Metrobank as the largest Filipino bank.)

Metrobank (www.metrobank.com.ph) was established by a group of businessmen on September 5, 1962 at the Wellington Building in Binondo, Manila.

PayPal Philippines FAQ

Here are frequently asked questions related to PayPal Philippines and PayPal accounts in general.

Can I receive and send funds with my PayPal Philippines account? Your PayPal Philippines account is a limited, send-only PayPal account. You absolutely have NO ABILITY at the moment to receive any funds and you can send funds only after you have attached a valid credit card to your PayPal account. You can’t also fund your account. When making an online purchase using PayPal, PayPal will automatically charge your credit card with the transaction amount.

More explanation and discussion of these limited functions can be found in the Finally, PayPal Philippines is here! thread in the PMT Forum and the When purchasing online, which is better: send-only PayPal Philippines account or credit card? article.

Why does my PayPal account have only send capabilities? PayPal’s explanation: Due to the complexities of global finance, members in certain countries and regions need to meet criteria to fully utilize our system, but this is not a reflection on the customer. PayPal is constantly working to expand and improve services for our customers. We hope to expand our features for these countries and regions, but we cannot give a timetable for this expansion.

To expedite the offering of full PayPal services, the Philippines has a critical job of convincing PayPal that appropriate banking regulations and legislation related to money laundering, online fraud, and identity theft are in place and strictly implemented. Everyone is therefore compelled to act. PayPal Philippines customers, banks, legislators, and regulatory agencies, among others, must do their share to show PayPal that the country adheres to the accepted rules of global finance.

Paypal vs. Credit Card: Which is better to use?

If you still need to add a valid credit card in your PayPal Philippines account, which then would be better to use when purchasing online: your Paypal account or your credit card?

PayPal Philippines account holders find themselves in this dilemma after discovering that for them to fully use their PayPal account — including ability to withdraw and send unlimited amount — they must still attach a valid credit card.

If this is the case, isn’t it cheaper, easier, and better to simply use a credit card to make an online purchase? Well, not necessarily. Below we list the Pros and Cons of using a send-only PayPal Philippines account as opposed to making a direct online purchase with your credit card.

National Life Insurance Company’s Term Plus Products: 8% and 10% p.a.

NOTE: We have started the Investment Products series that compiles deposit and investment products offered by banks and financial institutions in the Philippines. These articles … Read More

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Pinoy Money Talk