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BSP Increases Rates; Putting My Coins in A (Coin) Bank

I started late last year, wherein every end of day or end of week, I save my loose change, PHP5s and PHP10s. I considered these as expense already, meaning I don’t count these as part of my savings and assets in my personal SALN.

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I just finished bundling PHP5s and PHP10s from my (kiddie) coin bank. Was able to fill it to the brim in less than a year so I decided to move it from my coin bank to an actual bank. 

 
After an hour and a half of manual labor, I ended up with PHP5,200. Not bad huh? I just got PHP5,200 richer.
Small sum for some, but not for me. Every peso saved is a peso earned.
Hide It Than Spend It
I started late last year, wherein every end of day or end of week, I save my loose change, PHP5s and PHP10s. I considered these as expense already, meaning I don’t count these as part of my savings and assets in my personal SALN. I just thought that if I don’t see it in my coin purse, then I won’t be able to spend it. And the habit of putting some coins in my coin bank is a good habit, makes me more thrifty in a sense.
2016-coinbank1
I asked the friendly tellers of my banks and they suggested that I bundle the coins in PHP100-worth, so the PHP5s by 20s and the PHP10s by 10s. Though not required, it will speed up the transaction with the bank teller later on.
 
Saving Not Hoarding
BSP might punish me if I keep on saving a lot of coins in my coin bank rather than putting it in a bank. BSP and the government somewhat discourage saving a lot of coins and cash at home, to the point that it might be considered hoarding (and I think there is a proposed bill to penalize coin hoarders). BSP wants us to save, but not in our coin banks, but in actual banks. In coin banks, our money literally sleeps (with no interest) but in banks, we earn a very small interest and the banks are able to circulate this money via lending and investments, which in turn is beneficial to the economy (and to the banks of course).
 
BSP recently raised its overnight lending and borrowing rates, the first since 2011, to hopefully slowdown inflation. Which means it is slightly more expensive for banks to borrow from BSP and more attractive for banks to park their money with BSP. With this, banks have less incentive to aggressively lend to consumers and businesses, effectively lessening the money circulating in the economy.  
Actually, a number of banks have long anticipated this increase in rates and they have started issuing notes and bonds, so they are able to source money (that they shall multiply) not from BSP but from the private sector. We can also expect a slight increase in our deposit rates, since banks would rather attract our money (at microscopic rates), than borrow from BSP.
And hopefully, this PHP5,200 I have just saved and earned, will work harder for me. Now, time to fill that coin bank once more.
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About Geri (359 Articles)
Founder and main author. Husband, used-to-be-breadwinner, God-made multi-millionaire, employee, financial planner and adviser, investor, stocks trader, entrepreneur, agri-preneur, book author. Firm believer that all Pinoys deserve a richer life. Not a guru, but a forever student of the investments world, a work-in-progress.

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