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Best Bank Interest Rate?


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18 months at 4.5% at one bpi and 5.5 at our credit union.
Thank you. It was such value I looked for.

So it's NOT impressing for an investment project to beat :)   

. Old55, on 03 May 2015 - 01:08 AM, said: did get some great returns for about a year unless your willing take risks (just like anywhere) In todays climate IMO if a expat is hoping to supplement his income through investments and interest rates he might as well stay home where his income earning potential is greater. The time for nest egg building is prior to the move. I am mainly referring to fellow retirees naturally. :cheersty:
  (Some off topic, but the topic subject is done  :)

Well. Except the stock market, where we have more knowledge in our home countries,

I say OPPOSITE   = It's MUCH EASIER to get good yield in Phils, because the poor are short of capital and are used to very high interest rates where they can borrow normaly, and they are used to low salaries, so they are prepared to give away a BIG part to financieres. The poor can get BETTER deals than they are used to, but give MUCH to the finansiere still. 

For instance the only alternatives for poor farmers are normaly:

1. Don't afford fertilizer and such, so they get crap/no harvest (depending of which crop),

2. Borrow for in BEST case 120 % interest (recounted for a year. They need them some less time, so 40 %. The most common interest rate for the poor is 480 % per year !!!) And it's rather common the lender DEMAND the farmers sell the harvest to the lender for an UNDER MARKET price  :bash:     On top of that it's catastroph for the farmer if the harvest fail and become smaller than normal, as it does some years. 

So it's comparingly GOOD for the poor farmers to make "harvest sharing" deals.  There they CAN'T end up in dept to the financiere if the harvest fail e g by bad weather, because the farmer risk his WORK, while the financiere risk his MONEY.

 

A common deal for RICE "harvest sharing" is money back plus 25-33 % of the HARVEST. 

SOME deals prepay also the farmers enough to survive until harvest,

while other finance only the crop. Common cost for the crops is 20 000p per hektare.

A NORMAL year at average soil is the financiere's share worth at a 25 % deal 14 000p (at just guaranteed minimum price per sack) (to 20 000 per hektare in some cases). That's in around 4 months.

=14 000/20 000 invested = 70 % yield in 4 months a common year, less a harvest failing year.

In many places such can be done twice per year at SAME land.

 

There are A LOT of such opportunities in Phils, but the LIMITATION in investment AMOUNT is how many trustworthy enough farmers/orcharders are found.

(Two Swedes have done it to assist neighbours giving them better such deals than normal. One was fooled once, the other never. A Filipina have done it many years,  pressure max part to herself. I believe she is never fooled.)

 

Protection:

IF the land is owned by the farmer and TITLED - which in most cases it ISN'T -  it's POSSIBLE to have it as collateral.

Or let the barangay captain CONFIRM the deal when it start.

Or do as the Swedes  = Don't bother   :)    being kind of "protected" by offering BETTER deals than normal, so only the very stupid ones risk to lose that for the future...

 

That's rice. Similar can be done for other crops as well as animal breeding, but I don't know the common percentage deals for them.

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  • 3 months later...

I came across this site where you can compare different bank savings accounts and their interest rates. It's pretty handy and can come useful for doing quick references. I see they also provide for other financial products as well.

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About 2.75% on a million at BDO. Fixed deposit with interest paid monthly. That's a rather paltry 2300 pesos per month. However, BDO withholds 10% of interest to fulfill gov't requirements. 2300-10%=2070.

Bank Manager offered me Philippines Treasury Bonds at 3.5 % for a year, one million minimum. Interest paid annually.

Local Co Op Lending company offers up to 8 % unsecured for a year. 100k minimum. That's the one Thomas means because they do lend it out much higher.

Poor risk though, that branch just opened and who knows they could be gone overnight.

$10,000 US Dollars gets around .75% for a year at BDO, which is nothing. But with the dollar up around 8% this year, that is actually a very secure and safe investment with a good yield.

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When I compared savings account interest rates they were significantly higher in the Philippines than in the USA. This was comparing major Philippine banks not the fly by night small rural banks.

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18 months at 4.5% at one bpi and 5.5 at our credit union.
Thank you. It was such value I looked for.

So it's NOT impressing for an investment project to beat :)   

 

. Old55, on 03 May 2015 - 01:08 AM, said: did get some great returns for about a year unless your willing take risks (just like anywhere) In todays climate IMO if a expat is hoping to supplement his income through investments and interest rates he might as well stay home where his income earning potential is greater. The time for nest egg building is prior to the move. I am mainly referring to fellow retirees naturally. :cheersty:
  (Some off topic, but the topic subject is done  :)

Well. Except the stock market, where we have more knowledge in our home countries,

I say OPPOSITE   = It's MUCH EASIER to get good yield in Phils, because the poor are short of capital and are used to very high interest rates where they can borrow normaly, and they are used to low salaries, so they are prepared to give away a BIG part to financieres. The poor can get BETTER deals than they are used to, but give MUCH to the finansiere still. 

For instance the only alternatives for poor farmers are normaly:

1. Don't afford fertilizer and such, so they get crap/no harvest (depending of which crop),

2. Borrow for in BEST case 120 % interest (recounted for a year. They need them some less time, so 40 %. The most common interest rate for the poor is 480 % per year !!!) And it's rather common the lender DEMAND the farmers sell the harvest to the lender for an UNDER MARKET price  :bash:     On top of that it's catastroph for the farmer if the harvest fail and become smaller than normal, as it does some years. 

So it's comparingly GOOD for the poor farmers to make "harvest sharing" deals.  There they CAN'T end up in dept to the financiere if the harvest fail e g by bad weather, because the farmer risk his WORK, while the financiere risk his MONEY.

 

A common deal for RICE "harvest sharing" is money back plus 25-33 % of the HARVEST. 

SOME deals prepay also the farmers enough to survive until harvest,

while other finance only the crop. Common cost for the crops is 20 000p per hektare.

A NORMAL year at average soil is the financiere's share worth at a 25 % deal 14 000p (at just guaranteed minimum price per sack) (to 20 000 per hektare in some cases). That's in around 4 months.

=14 000/20 000 invested = 70 % yield in 4 months a common year, less a harvest failing year.

In many places such can be done twice per year at SAME land.

 

There are A LOT of such opportunities in Phils, but the LIMITATION in investment AMOUNT is how many trustworthy enough farmers/orcharders are found.

(Two Swedes have done it to assist neighbours giving them better such deals than normal. One was fooled once, the other never. A Filipina have done it many years,  pressure max part to herself. I believe she is never fooled.)

 

Protection:

IF the land is owned by the farmer and TITLED - which in most cases it ISN'T -  it's POSSIBLE to have it as collateral.

Or let the barangay captain CONFIRM the deal when it start.

Or do as the Swedes  = Don't bother   :)    being kind of "protected" by offering BETTER deals than normal, so only the very stupid ones risk to lose that for the future...

 

That's rice. Similar can be done for other crops as well as animal breeding, but I don't know the common percentage deals for them.

 

 

Thomas. The OP was asking about bank interest rates not investing. Please only reply if your answer is on topic. Seems like almost every post you mention harvest sharing. 

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Thomas. The OP was asking about bank interest rates not investing.
I'm the OP   :)

I asked, because an investment offer add said "Better than bank", so I just wondered how much that is in Phils. So it isn't an impressing investment offer...

When I had got the answer, I compared with in Phils common investments.

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The OP was asking about bank interest rates not investing
I'm the OP

 

Hilarious!!!   :hystery:   :hystery:   :hystery:

 

But seriously, once you have started a topic you stop 'owning' it and it belongs to the forum.  That means even the OP has to stay on topic.  Which means you should listen when one of the other members explains that you are rambling, and you should consider starting a new topic for the new questions.  ALSO:  Asking a question in a thread and then answering it yourself might get you  :bash:  :buttkick:   :1 (72):

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The OP was asking about bank interest rates not investing

 

I'm the OP

 

Hilarious!!!   :hystery:  

 

But seriously, once you have started a topic you stop 'owning' it and it belongs to the forum.  That means even the OP has to stay on topic.  Which means you should listen when one of the other members explains that you are rambling, and you should consider starting a new topic for the new questions.  ALSO:  Asking a question in a thread and then answering it yourself might get you  :bash:  :buttkick:   :1 (72):

:)   But the PURPOUSE with my OP question WEREN'T finding were to get the best bank RATE,

but to get the VALUE to COMPARE with what that INVESTMENT ADD said...   :)

(And when I had got the answer, then I wrote I didn't find the investment offer impressing and wrote some comparing with some other options.)

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But the PURPOSE with my OP question WEREN'T finding were to get the best bank RATE,
What's the HIGHEST interest rate you have seen CUSTOMERS can GET in Banks in Phils?

*Sigh,  We can't read you mind.  It helps if you tell us what you are talking about it words us non-Swedes can understand  :tiphat:  :cheersty:

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