A savings deposit account is a great financial tool to help build your wealth. It provides you with a convenient place to grow your funds, especially when the savings interest rate is high. But while a high-yield savings account can support your savings goals, it isn’t the only option you have. A time deposit account can also give your savings a structured way to grow.

This type of account allows you to deposit funds for a fixed period in exchange for a predetermined interest rate. Its interest rate is typically higher than that of a regular savings account, making it an attractive option for savers. The only caveat with most time deposit accounts is that you can’t always readily access the funds before the agreed maturity date. Even so, time deposits remain a popular savings product among individuals who are comfortable with this type of arrangement.

Depending on how you want to manage your money, you may choose one account over the other. However, there’s a practical advantage to managing a time deposit account and a savings deposit account (or several of both) at the same time. This article looks at why using both accounts can make your savings approach more useful and well-rounded.

Provides You with an Alternative Way to Make Your Money Work Harder for You

Opening a time deposit account alongside a savings account gives you the opportunity to distribute your funds across different savings products. This enables you to take advantage of each account’s interest rates, giving your money more chances to earn.

To maximize the benefits of this setup, consider opening both accounts within the same bank. Doing so makes your funds easier to monitor and manage. Digital bank Maya, for instance, has Maya Time Deposit Plus and Maya Savings. Opening both accounts lets you make better use of the bank’s savings products while keeping your funds within the Maya app.

Lets You Earn Higher Interest on Funds You Won’t Need Right Away

A growing savings balance can sometimes include money that you don’t expect to use anytime soon. While leaving those funds in a regular savings account may be convenient, they may not be getting the highest interest rate available to you. With a time deposit account, however, your money can potentially earn more over time. This can increase the growth potential of funds that aren’t needed immediately, especially when they’re placed in an account that offers a competitive interest rate.

A Maya Time Deposit Plus account, for example, starts with a guaranteed base interest rate of 3% p.a. This then be boosted up to 6% p.a. when you reach your target amount and date. You gain predictable returns of 5% p.a., 6% p.a., or 5.5% p.a., for the 3-, 6-, or 12-month term, respectively. What’s more, you don’t have to make a minimum bank deposit amount to start. You can begin with any amount and add funds anytime until you hit your goal amount.

Combining the benefits of Maya Time Deposit Plus with Maya Savings can help you increase the earning potential of your overall savings. A Maya Savings account starts with a base interest rate of 3% p.a., which can be further boosted to 15% p.a.* To unlock higher interest tiers, simply use Maya’s services for everyday transactions. This means that the more you use Maya to buy mobile load, pay bills, pay with QR Ph, and more, the higher your account’s interest earnings can be. With both accounts working together, more of your savings can benefit from opportunities to earn interest.

Makes it Easier to Manage Goals with Different Purposes

Managing a time deposit account and a savings account can help create a clearer distinction between different financial goals. Assigning money to separate accounts lets you more easily track your progress toward each objective.

For example, a time deposit account is well suited for long-term goals with a defined target amount, such as a wedding or a car purchase. Since these expenses are planned well in advance, you can set aside funds that you won't need to access immediately. While many time deposit products make it difficult to keep different savings goals organized in one place, Maya Time Deposit allows you to open up to 5 accounts at once, making it easier to save for multiple objectives simultaneously.

Meanwhile, a savings account is better suited for shorter-term or more flexible goals, such as building an emergency fund, setting aside money for annual insurance payments, funding a professional certification course, or saving for a short getaway. It allows you to make regular deposits while keeping your money accessible when needed.

Maya Personal Goals, another savings solution you can access within the Maya app, can help you organize these objectives by letting you create up to 5 separate goal accounts. This goals-based structure complements Maya Time Deposit Plus by giving smaller, more flexible targets their own place within your overall savings plan. Each account earns up to 8% p.a. on balances up to PHP 100,000, with tiered interest rates starting at 4% p.a. for the first PHP 20,000 and gradually increasing up to 8% p.a. for amounts above PHP 80,000.

Helps Ensure That Long-Term Savings Remain Untouched During Emergencies

Emergencies can quickly derail even the most well-managed savings plan. A sudden expense may require immediate funding, and if all your money is kept in a single account, long-term savings may be used sooner than intended.

Spreading your funds across a savings account and a time deposit account, however, lets you create a buffer against this situation. For instance, dedicating the money kept in your savings account for unforeseen expenses ensures that you have accessible funds when urgent costs arise. This prevents you from dipping into the savings you’ve already committed to your time deposit account, allowing those funds to stay reserved for their intended purpose.

Encourages Greater Discipline in Reaching Your Financial Goals

Saving for a major goal often requires consistency over an extended period. Without a clear structure, it can be easy to postpone contributions or lose track of progress. A time deposit account can introduce a greater sense of commitment. It encourages you to set money aside for a specific period, while the funds in your savings account continue to support your more immediate needs.

This combination can help create a more intentional approach to saving. Rather than treating all savings as one pool of money, you can reserve a portion for a defined goal while keeping the rest accessible. This arrangement can encourage habits that keep you focused on reaching your financial objectives, making it less likely that you’ll lose momentum along the way.

A savings strategy doesn’t always have to rely on a single savings account deposit. In many cases, the right combination of financial products can help you make the most of the funds you set aside. Adding a time deposit account to your savings setup can support a more balanced way to grow and manage your finances. With both accounts working together, it’ll be easier to keep your money aligned with the plans you have for it.

*Bonus interest applies to deposit balances of up to PHP 100,000.