Dear friends, if you have (other) friends and relatives from our uniformed personnel (i.e. AFP, PNP, BJMP, BFP etc.) and/or their relatives / dependents, strongly encourage them to take advantage of the special deposit accounts offered by either the Armed Forces and Police Savings and Loans Association Inc (AFPSLAI) or the Public Safety Savings and Loan Association Inc (PSSLAI) wherever they shall qualify.
Simply because of the very high and competitive interest rates that are hard to come by. Such rates are hard to come by and achieve, even in a bullish stock market. Plus the risk is commensurately less for the possible earnings via interest and dividends.
The investment is also very easy to understand, straightforward as banks’ time deposits but with higher earning potential. Talk about your money working extra hard for you.
So if you know someone who’s qualified but is not taking advantage of it, talk him/her into it. Once s/he has established his/her emergency fund
and protected him/herself via insurance
, this should be the next logical step.
Maximise the opportunity and stop wasting time. Let time value of money and compounding be your allies.
Instead of putting to sleep amounts of money not needed anytime soon via investments yielding microscopic rates (that cannot even beat inflation), ask them to strongly consider these opportunities instead. Last time I heard, AFPSLAI rates are at 16% to 18% annually. A more recent update puts it at 15.5%. Still high though right?
Where can you get that yield for a relatively low risk investment? UITF
, stocks and putting up a business might provide comparable rates but for higher risk, relatively lower probability and higher levels of anxiety.
Likewise, bank time deposits, which has comparably similar risk, are unfortunately nowhere close to these rates, with only 2% to 2.5% annually, and still subject to interest income tax of 20%. At least for AFPSLAI, interest earnings are tax free. I’ve no information so far on PSSLAI rates and taxation but it should be more or less the same.
I mentioned relatively low risk investment since putting money on AFPSLAI or PSSLAI still entails risk, albeit very low, since deposits are not covered by PDIC, unlike that of banks. But then again, one simply needs to conduct due assessment on how stable these institutions are.
I’m still on the look out though for similar savings and loans associations for private employees. Watch this category friends.
So, if you have friends from our uniformed personnel…
Photo: From AFPSLAI and PSSLAI websites.