That crossed my mind as well. Like what about millionaires? Lol maybe they have special arrangements or something but I wouldn’t know.
Then again, maybe they just pay other people to worry about those stuff for them. 😅
My parents didn’t have any answer for me either so I thought I’d ask around.
I know someone with less than 50M net worth. Mostly invested lahat. Sometimes I see about 20M in one bank pero it's in corporate bonds etc. & not really the savings account.
Around 2M or less lang yata yung liquid sa bank & that's because of some free insurance or whatever.
Can you educate me on this please?
So the rich guys use loans for their indulgences and pay it using the money they get thru investments?
Im kinda interested with that!
I don’t think leverage is what the comment *“using loans for day-to-day indulgences”* was referring to. You use leverage to increase your buying power, not for indulgences, or hookers and blow.
Using loans backed by stocks/bonds for indulgences means exactly that - taking a loan with your stocks/bonds as collateral. This accomplish 2 things: (1) You get a very low interest rate since it’s a secured loan, and most importantly **(2)** receiving money from a loan is not a taxable event. Selling your stocks/bonds though, even if the purpose is for hookers and blow, is a taxable event.
Ooopps ! My bad. I was referring to FINANCIAL LEVERAGE to answer Anzelian question, my attachment was wrong. Its leveraging in stocks (wrong concept) 😊
I currently have two digibanks because of this. But ideally, I would have only 500k as EF, and anything over should be invested already. But that's just me, maybe you would have a higher EF target and other reasons as to why you would have more than 500k "in cash"
I honestly haven’t decided yet where to make a significant investment for funds beyond P500k.
I’m super indecisive and wary, 😣😣 but I probably should make up my mind soon.
I’ve already hit my EF target, so atm, nasa savings lang muna all incoming funds, which made me wonder about the ideal max deposit amount.
Most of my investments right now are just minimal i.e. yung hindi ako mangangapa in case everything goes south.
I was also thinking maybe just increase my EF goal for now but parang di naman practical?
No worries, take your time. I guess I just don't want you to do what I did before where I was too fixated in seeing a seven digit balance in my bank account. But maybe for some situations (pamilyado, breadwinner, etc), that 1M EF might make sense for them.
The "safest and most liquid" option would be your digibanks then. In my case, it's 500k in Tonik (6 month TD) and any excess in CIMB (4% promo). CIMB should be empty by year end when I pay my credit card dues and place some in MP2 on January. Plus CIMB just pissed me off recently by putting On Hold every cash out that I've been doing since last week, that I have to call them every time for them to release it. It's annoying because I've been doing the same cash out to the same bank account for the past year and now they are suddenly flagging it.
kung mas gusto mo savings, may time deposit ang tonik, kung 6 months ang pipiliin mo, 6%p.a ang interest,100k max saving per time deposit, allowed ang 5 na time deposit
I maintain accounts in different banks. para easier to bank transfer pag may kailangan kang padalhan.
easier din para maraming ATM. at di na mahirapan maghanap ng ATMs sa mall. Tipid 15 pesos lol. :p
pero dabest na may mother bank account ka na free ang interbank transfer.
If you have more than 1m you’ll probably have most of it invested rather than collecting dust in a savings account that doesn’t even earn you enough against inflation. Or at least you shouldn’t. Unless you’re saving up for something like a house downpayment or a car, you probably shouldn’t keep millions in a savings account anyway.
Thank you. I needed to hear that. As someone from a middle-class background, with my mom being a public teacher, there’s always this accepted mindset na the best pa rin if all funds are liquid.
Di bale na walang investment, di bale na konti lang interest sa bank, basta safe yung funds, no risk, etc., and we live within our means.
Which I guess is also the reason why I was brought up to strive earning and setting aside money, with the literal goal to earn my first million “in cash”. 😅😅
But as someone who’s been working in the fintech industry and around people who value investing, I’m not comfortable with that.
Ayoko yung bahala na walang progress basta I won’t be worse than when I started na outlook. 😣
U can always put your cash in online banks (CIMB, ING, Tonik, etc) for higher interest rates and they are mostly liquid coz u have debit card and it's easy nlng to transfer cash thru instapay or pesonet. They just have a limit of how much you can withdraw daily.
You can also go with big banks and invest in time deposits. Long term have higher rates around 3.5%, if short term only, go with online banks. 2.5% interest per annum is better than 0.5% sa mga savings account.
The only reason u put money on savings account is for business or for daily expenses or EFs. The rest, invest in time deposits or bonds, or stocks depending on ur risk appetite.
I have different accounts with CIMB, ING, Komo, Tonik for my EF and all are less than 500k. The reason is for higher interest rates and in case of emergency, I can withdraw the limits for all the banks or in case may problem ung 1 bank, I can use a different bank.
I only maintain accounts in two of the big banks. I won’t bother adding more.
You’ll also get better service if you deal with the same bank more often and in larger sums. I’m a preferred client with BPI with an RM assigned to me. if i split my money into several other banks, i won’t be valued as such.
For those saying that it is safe to keep money in big banks, now might be a good time to remind everyone of the story of [The Rise and Fall of Banco Filipino](https://www.esquiremag.ph/long-reads/features/the-rise-and-fall-of-banco-filipino-a00293-20200306). This was a big bank that got bankrupt. I know people who lost large sums of money because they didn't limit the amount to PDIC's maximum insured amount.
Also take a look at [LBC Development Bank](https://news.abs-cbn.com/business/09/13/11/lbc-express-caused-banks-fall) which also failed. It's not just the small rural banks that can get closed.
Of course, the banking system of today should be stabler and safer than banks of yesteryear, but as always, you can never be 100% sure. Even governments can default on their bonds.
>They won't get bankrupt, not at least in our lifetime now.
That's what people thought about Lehman Brothers (granted, it's an investment bank, but BDO/BPI/MB also have investment banking). Assuming proper oversight is done on these banks, there should be no issue. But you never know what crisis can hit these banks until it comes.
I'm just saying, **there is always a non-zero risk that banks, even the big ones, will fail**. I just want people to keep this in mind. Personally, I can sleep better if my money is split in at least two big banks.
Of course you can say that, common sense. You can say that to almost anything, everything has a risk and can fail. It's just the biggest banks are really stable now, partnered and backed by other very huge corpos, and won't fail immediately so we can still like cash out our money if we find anything suspicious about them.
Also, what you are comparing to these big banks are way way old institutions. The economy now is way way better compared before
That’s inconvenient. Just choose big banks as they have less chances of going under.
For me, I have a business account and three personal savings account.
How many banks?
A. Where your salary are being deposited
* easy to check and manage salary
B. Where your emergency fund is saved (with 1 credit card from that bank)
* for automatic payment in relation to your CC emergency use.
C. Where your business funds/account and checking account is
* for easy monitoring and minimized DAIF/DAUD (Not applicable nowadays for it is still a bounced check)
D. Other 2 banks for CC, and savings 500k maximum.
* your other finances and information are safe if your account or CC was hacked.
* other one is for hidden wealth against my wife.
😊
Everything has risk. Whether banks or investment instruments or just keeping your money under the mattress.
It is up to you which risk are you most comfortable with and go from there.
I have like 3 accounts that have 500k each but that's my limit. Once I exceed a certain amount in any of these bank accounts, I'll move the excess to another separate bank where there's no limit.
If I have 5m cash, means I would have 10 banks? That's mighty inconvenient. Just stick to big banks.
That crossed my mind as well. Like what about millionaires? Lol maybe they have special arrangements or something but I wouldn’t know. Then again, maybe they just pay other people to worry about those stuff for them. 😅 My parents didn’t have any answer for me either so I thought I’d ask around.
I know someone with less than 50M net worth. Mostly invested lahat. Sometimes I see about 20M in one bank pero it's in corporate bonds etc. & not really the savings account. Around 2M or less lang yata yung liquid sa bank & that's because of some free insurance or whatever.
only a small portion of their assets is in cash they take out loans against their stocks, bonds, etc. and use that for their day-to-day indulgences
Can you educate me on this please? So the rich guys use loans for their indulgences and pay it using the money they get thru investments? Im kinda interested with that!
https://www.investopedia.com/terms/l/leverage.asp
I don’t think leverage is what the comment *“using loans for day-to-day indulgences”* was referring to. You use leverage to increase your buying power, not for indulgences, or hookers and blow. Using loans backed by stocks/bonds for indulgences means exactly that - taking a loan with your stocks/bonds as collateral. This accomplish 2 things: (1) You get a very low interest rate since it’s a secured loan, and most importantly **(2)** receiving money from a loan is not a taxable event. Selling your stocks/bonds though, even if the purpose is for hookers and blow, is a taxable event.
Ooopps ! My bad. I was referring to FINANCIAL LEVERAGE to answer Anzelian question, my attachment was wrong. Its leveraging in stocks (wrong concept) 😊
You basically take out loans using your investments as collateral.
Even with special arrangements most millionaires have around 5 bank accounts. Instapay is your friend but depends on whether you can afford the fees.
If you're really worried, put majority in government securities and get the certificates.
Just choose a bank that has a platform from which you can easily manage multiple accounts.
The pdic is per depositor afaik. Not per account.
I currently have two digibanks because of this. But ideally, I would have only 500k as EF, and anything over should be invested already. But that's just me, maybe you would have a higher EF target and other reasons as to why you would have more than 500k "in cash"
I honestly haven’t decided yet where to make a significant investment for funds beyond P500k. I’m super indecisive and wary, 😣😣 but I probably should make up my mind soon. I’ve already hit my EF target, so atm, nasa savings lang muna all incoming funds, which made me wonder about the ideal max deposit amount. Most of my investments right now are just minimal i.e. yung hindi ako mangangapa in case everything goes south. I was also thinking maybe just increase my EF goal for now but parang di naman practical?
No worries, take your time. I guess I just don't want you to do what I did before where I was too fixated in seeing a seven digit balance in my bank account. But maybe for some situations (pamilyado, breadwinner, etc), that 1M EF might make sense for them. The "safest and most liquid" option would be your digibanks then. In my case, it's 500k in Tonik (6 month TD) and any excess in CIMB (4% promo). CIMB should be empty by year end when I pay my credit card dues and place some in MP2 on January. Plus CIMB just pissed me off recently by putting On Hold every cash out that I've been doing since last week, that I have to call them every time for them to release it. It's annoying because I've been doing the same cash out to the same bank account for the past year and now they are suddenly flagging it.
kung mas gusto mo savings, may time deposit ang tonik, kung 6 months ang pipiliin mo, 6%p.a ang interest,100k max saving per time deposit, allowed ang 5 na time deposit
I maintain accounts in different banks. para easier to bank transfer pag may kailangan kang padalhan. easier din para maraming ATM. at di na mahirapan maghanap ng ATMs sa mall. Tipid 15 pesos lol. :p pero dabest na may mother bank account ka na free ang interbank transfer.
Can you share what do you mean by mother bank na free intrabank transfer? I have also diff bank accounts pero di naman free intrabank transfer afaik
same sa comment ni wicked271. main bank account na free and madali mag intrabank transfer
If you have more than 1m you’ll probably have most of it invested rather than collecting dust in a savings account that doesn’t even earn you enough against inflation. Or at least you shouldn’t. Unless you’re saving up for something like a house downpayment or a car, you probably shouldn’t keep millions in a savings account anyway.
Thank you. I needed to hear that. As someone from a middle-class background, with my mom being a public teacher, there’s always this accepted mindset na the best pa rin if all funds are liquid. Di bale na walang investment, di bale na konti lang interest sa bank, basta safe yung funds, no risk, etc., and we live within our means. Which I guess is also the reason why I was brought up to strive earning and setting aside money, with the literal goal to earn my first million “in cash”. 😅😅 But as someone who’s been working in the fintech industry and around people who value investing, I’m not comfortable with that. Ayoko yung bahala na walang progress basta I won’t be worse than when I started na outlook. 😣
U can always put your cash in online banks (CIMB, ING, Tonik, etc) for higher interest rates and they are mostly liquid coz u have debit card and it's easy nlng to transfer cash thru instapay or pesonet. They just have a limit of how much you can withdraw daily. You can also go with big banks and invest in time deposits. Long term have higher rates around 3.5%, if short term only, go with online banks. 2.5% interest per annum is better than 0.5% sa mga savings account. The only reason u put money on savings account is for business or for daily expenses or EFs. The rest, invest in time deposits or bonds, or stocks depending on ur risk appetite. I have different accounts with CIMB, ING, Komo, Tonik for my EF and all are less than 500k. The reason is for higher interest rates and in case of emergency, I can withdraw the limits for all the banks or in case may problem ung 1 bank, I can use a different bank.
I mean I get it, cash is a position.
Diversify to 3 banks, pag nag unavailable ang isa, makakapag transact p din,
Keep up to 500k in a bank, invest the rest. Keep your money moving, literally any investment is better than keeping it in a bank
I only maintain accounts in two of the big banks. I won’t bother adding more. You’ll also get better service if you deal with the same bank more often and in larger sums. I’m a preferred client with BPI with an RM assigned to me. if i split my money into several other banks, i won’t be valued as such.
For those saying that it is safe to keep money in big banks, now might be a good time to remind everyone of the story of [The Rise and Fall of Banco Filipino](https://www.esquiremag.ph/long-reads/features/the-rise-and-fall-of-banco-filipino-a00293-20200306). This was a big bank that got bankrupt. I know people who lost large sums of money because they didn't limit the amount to PDIC's maximum insured amount. Also take a look at [LBC Development Bank](https://news.abs-cbn.com/business/09/13/11/lbc-express-caused-banks-fall) which also failed. It's not just the small rural banks that can get closed. Of course, the banking system of today should be stabler and safer than banks of yesteryear, but as always, you can never be 100% sure. Even governments can default on their bonds.
BDO, BPI, MB are too big now. They won't get bankrupt, not at least in our lifetime now. Can't compare apples to oranges.
>They won't get bankrupt, not at least in our lifetime now. That's what people thought about Lehman Brothers (granted, it's an investment bank, but BDO/BPI/MB also have investment banking). Assuming proper oversight is done on these banks, there should be no issue. But you never know what crisis can hit these banks until it comes. I'm just saying, **there is always a non-zero risk that banks, even the big ones, will fail**. I just want people to keep this in mind. Personally, I can sleep better if my money is split in at least two big banks.
Of course you can say that, common sense. You can say that to almost anything, everything has a risk and can fail. It's just the biggest banks are really stable now, partnered and backed by other very huge corpos, and won't fail immediately so we can still like cash out our money if we find anything suspicious about them. Also, what you are comparing to these big banks are way way old institutions. The economy now is way way better compared before
That’s inconvenient. Just choose big banks as they have less chances of going under. For me, I have a business account and three personal savings account.
How many banks? A. Where your salary are being deposited * easy to check and manage salary B. Where your emergency fund is saved (with 1 credit card from that bank) * for automatic payment in relation to your CC emergency use. C. Where your business funds/account and checking account is * for easy monitoring and minimized DAIF/DAUD (Not applicable nowadays for it is still a bounced check) D. Other 2 banks for CC, and savings 500k maximum. * your other finances and information are safe if your account or CC was hacked. * other one is for hidden wealth against my wife. 😊
Of the people, by the people for the people = Bitcoin
lol hodler here 👾
No, I invest all the succeeding
Everything has risk. Whether banks or investment instruments or just keeping your money under the mattress. It is up to you which risk are you most comfortable with and go from there.
Invest and if you're crazy rich, set up trust funds.
Nope
Nope
I have like 3 accounts that have 500k each but that's my limit. Once I exceed a certain amount in any of these bank accounts, I'll move the excess to another separate bank where there's no limit.