5 reasons why you should be interest rate-savvy

ING

Posted at Aug 01 2019 03:40 PM | Updated as of Oct 15 2019 03:29 PM

Interest rates are not just random information on your savings account. They determine how much you earn on the money you save and if you’re making the most out of your interest-bearing bank deposits. 

Rates vary from one bank to another, which means you could be earning less on your savings in one bank while reaping gains on another. 

According to a recent survey by the Bangko Sentral ng Pilipinas, 15.8 million Filipino adults own bank accounts, and most local banks currently offer less than 1% interest on savings accounts. This is not a far cry from the average yield of 0.08% to 0.09% in the United States, where some major banks even offer yields as low as 0.01%.

Fortunately, Dutch financial institution ING Bank is offering a better savings alternative: the ING Savings Account.

For a balance of up to P10 million, the ING Savings Account lets you earn 4.0% interest rate per annum — an increase from its 2.5% rate and over 10 times higher than the rates other local banks currently offer for regular savings accounts. Both new and existing customers can take advantage of this limited-time offer from August 1 to October 31, 2019. 

ING lists down five reasons why every Filipino saver must be interest rate-savvy:

1. It determines how much you earn. 

When you deposit money in a bank account, you “lend” that money to the bank and earn interest. The bank takes that money for lending to other customers via loans, credit cards, and investments. Your deposit is money you’re leaving untouched, whether for a big purchase or personal emergencies, so ideally it should yield maximum interest earnings for you. 

2. It protects your purchasing power.

High interest on your savings account helps prevent your money from losing purchasing power over time, no thanks to inflation. This is particularly useful if you’re building your wealth for the future. 

3. It enables you to save up for emergencies.

The better and more frequently interest is added to your balance, the faster your savings will grow. It’s not quite a fortune but can still be a rainy-day fund, according to experts. And that’s what a savings account is for: cash on demand, money that remains accessible, or the emergency fund that you can count on sooner or later. 

4. It kickstarts your savings. 

An attractive interest rate can promote a healthy savings mindset. Coupled with zero fees and penalties for falling below the minimum balance, it can inspire you to achieve your savings goals faster. 

5. It makes you money-smart.

Conventional wisdom dictates that leaving money in a savings account is for dummies, because it doesn’t earn anything and it can “sleep” for years and years. High interest rates change this thinking and give people a chance to take control of their finances. 

Digital banks tend to have better rates than their brick-and-mortar counterparts to complete their offer of a unique banking experience without any bank visit, teller transaction, or long queues. As the country’s first all-digital banking platform, the ING Savings Account lets you deposit via interbank fund transfers and through mobile check deposit by taking a photo of the check using one’s smartphone, another local first. Banking with ING also comes with no minimum balance, no lock-in periods, and no fees.

Apart from ease and convenience, the ING banking app provides sophisticated mobile security via state-of-the-art tech built into it. This includes an account opening process that ideally takes less than 10 minutes, liveness detection, optical character recognition, and the backing of ING’s global security defense centers working 24/7 across the globe. 

ING is a global financial institution with a strong European base, offering banking services through its operating company, ING Bank. In the Philippines, ING is regulated by the BSP and has been operating as a branch for nearly 30 years now. It also owns a subsidiary, ING Business Shared Services (IBSS), which supports ING’s wholesale banking branches in more than 38 locations in Asia, Europe and North America. 

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