Wednesday, October 26, 2011

BPI Direct Time Deposit


I think that I am such a regular customer of BPI and its subsidiary bank, BPI Direct. It should be noted that I am in no way receiving any special treatment or incentive for including them in my blog posts. I am just particularly satisfied with their services. 

Last October 24, I started a BPI Direct Time Deposit account with the term of 35 days. The amount is not that big and the term is not that long, so you might be wondering why I did this. This is just a back-up for my emergency fund.  


I had the plan of using compounded interest to my advantage. 

How? I chose the option to "Rollover both principal and interest upon maturity". 

What did that mean? 

This simply meant that compounded interest will be in action. Let's say I put P10,000 and get roughly P10 in interest. If I choose to have another term of 35 days, my principal will not only be P10,000 anymore, but P10,010! 

My interest will also be gaining interest. 

Yes, I know, how about inflation? 

We all know that to be able to get high returns, we need to invest in high-risk products. Thus, we tend to lose money on the process. That is another story. 

This specified amount is for emergencies, thereby, I cannot afford to risk it just to get high returns. 

What about liquidity? 

Again, this is a back-up for my emergency fund.  

This means that I already have an emergency fund. In the unfortunate event that it is not enough, then I will have no other choice but to withdraw this one. 

Think of it as a security blanket of another security blanket. 

Awesome, right? 


Any violent reactions? Motivated comments? Feel free to comment below.

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Live wisely,



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