Have you noticed that your groceries, your electric bill, or even your go-to milk tea have gotten more expensive over the years? That’s inflation in action. It slowly eats away at your money’s buying power, and over time, it can seriously reduce the value of your savings, without you even realizing it.
Let’s say you have PHP 100,000 sitting in the bank. If inflation is at 4% this year, you’ll need PHP 104,000 next year just to afford what you can buy with PHP 100,000 today. But if your savings account only gives you 0.10% interest per year, you’ll have just PHP 100,100after a year, which is much, much less than what you actually need. This means even though your balance goes up a bit by PHP 100, your money is actually losing a lot of value.
Fortunately, you can fight back. And no, you don’t need to be a financial expert to do that. With a few smart changes, like switching to a higher-interest savings account or opening a time deposit, the Philippines’ inflation won’t hurt your savings. Let’s dive into a few smart ways to get started.
1. Switch to a High-Interest Savings Account
If your money is in a savings account earning less than 1% per year, it’s time to move it somewhere it can grow faster. Maya Savings, for example, gives you 3.5% interest, which is already way better than what most traditional banks offer. And if you use Maya regularly to complete everyday transactions like buying load, paying bills, using Maya Easy Credit, paying via QR Ph, using the Maya Card, or paying with Maya online, you can boost that rate up to 15% per year. That’s a huge win when you’re trying to beat inflation.
Even better, Maya is the #1 digital bank in the Philippines, regulated by the Bangko Sentral ng Pilipinas and insured by the Philippine Deposit Insurance Corporation (PDIC) up to PHP 1,000,000. This means your money enjoys the same safeguards afforded to traditional banks while earning a lot more interest.
2. Try a Time Deposit to Lock in Higher Earnings
Looking for a safe way to earn even more? Consider opening a time deposit account. It’s basically money you agree to “park” for a set period in exchange for a higher interest rate. With Maya Time Deposit Plus, you can earn up to 6.00% per year, which is among the highest interest rates time deposits in the Philippines offer right now. You don’t need to start big either. Even a small amount can earn more here than in a regular bank.
Want to see how much you can make? A time deposit calculator can help you figure out your earnings based on how much you deposit and for how long.
Sure, you can withdraw your money early if needed, but sticking to the full term gives you the most benefit. It’s a great way to grow your savings without constantly thinking about it.
3. Build an Emergency Fund
Unexpected stuff, like hospital bills, house damage due to typhoons and floods, or losing a job, can really mess with your finances. And when inflation is high, those emergencies cost even more. That’s why an emergency fund is a must. Ideally, try to save at least three to six months’ worth of your usual expenses. To make it easier, keep this money in a separate high-interest account that’s easy to access but still earns decent interest.
Maya Personal Goals, for example, lets you organize your savings into different “digital envelopes” that earn an interest of 4% per year, which you can even push to the max up to 8% per year. This way, your rainy-day fund doesn’t just sit there; it quietly grows while you’re not using it.
4. Take Advantage of Pag-IBIG MP2
Looking for a government-backed option with strong returns? Check out the Pag-IBIG MP2 Savings program. It’s voluntary, tax-free, and usually earns better dividends than the regular Pag-IBIG savings. In 2024, the MP2 dividend rate was 8.11%, which was one of the highest in years. You can let your dividends grow or choose to get them annually. There is a five-year commitment, but if you’re saving for long-term goals like starting a business, buying a home, or retiring early, it’s totally worth considering.
5. Start Investing, Even Just a Little
Investing sounds risky, especially when prices are already rising. But not investing at all can actually cost you more in the long run. You don’t need to jump in with both feet, though. Start small and maybe set aside a small portion of your monthly budget for mutual funds, bonds, or even a beginner-friendly stock portfolio. They can help your money grow faster than inflation eats it up.
6. Watch Out for Lifestyle Inflation
It’s tempting to spend more when you start earning more. That’s totally normal, but also a little dangerous. This is called lifestyle inflation. The more you make, the more you spend, and before you know it, you’re not saving anything at all!
To avoid this, flip the script and commit to saving or investing a chunk of your salary or bonus first. Then enjoy what’s left guilt-free. Over time, this habit can help you build serious financial security without feeling like you’re depriving yourself.
7. Spend Smart, Not Just Less
Finally, how you spend your money matters just as much as where you put it. Little things, like buying groceries in bulk, using loyalty points, shopping during sales, or going for trusted generic brands, can make a real difference.
Also, track your spending. You might be surprised at how much you spend on things like food delivery or subscriptions you forgot about. Plus, cutting back a little gives you more to save, invest, or put into that high-yield time deposit.
You Have More Control Than You Think
Inflation is part of life, but it doesn’t have to ruin your savings. With tools like high-interest accounts, time deposits, and smart budgeting features, you can protect your money and even help it grow. If you’re not sure where to start, explore your options and try using a time deposit calculator Philippine bank consumers trust. You might be surprised at how much more your money can earn with just a few adjustments. At the end of the day, it’s not about being rich or having expert financial skills. What matters most is making smart moves with what you already have. With a little planning and the right habits, you can keep your savings strong, no matter how high prices go.
