Cashflow Management

1. Money in a bank account is safe.

A bank is one of the safest places to stash your cash since your account is insured against loss by the government. In Philippines account is insured up to P250,000 per depositor and might increase to P500,000 per depositor.

2. You pay for the convenience of a bank account.

Banks pay lower rates on interest-bearing accounts than brokerages and mutual fund companies. And watch out for bank fees especially if your account is below the minimum required balance.

3. Inflation can eat what you earn from a bank.

Even at a low rate of inflation, the annual creep in the cost of goods and services usually outpaces what banks pay in interest-bearing accounts.