Manila, Philippines

High Yield Deposits via AFPSLAI and PSSLAI

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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…
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Photo: From AFPSLAI and PSSLAI websites.
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 Filipino Personal Finance Investments For Filipinos

52 Responses

  1. Bing says: I be qualified to invest in PSSLAI? I am a private employee and no relative under this association. But I have a brother in law that works as a policeman. How can I invest in PSSLAI? Thanks

    • Geri says:

      You personally cannot open an acct but if you trust your brother in law you can put money under his name. This is not exactly legit and I don’t encourage people to do it but I am pretty sure some people do this– deposit through their relatives and just agree among themselves how to split the income.

  2. atanacia says: an afpslai (single) member dies and he had capital contribution, and his membership is not yet terminated ,will the dividend stop because he died already?

    • Geri says:

      I would think so as soon as afpslai knows that the accountholder is already deceased. The account will be frozen until relatives claim it after processing the estate of the deceased. This is just a guess though as banks would also do something similar. But best to inquire with afpslai for the accurate answer.

  3. Anonymous says:

    Cash Advance Storage Account (CASA) ng PSSLAI nag eearn din ba ng interest? may bago kasi rule ang PSSlAI dun na ang punta ang excess dividend ng CAPCON hndi na sa Premium Savings Account (PSA).

    • Geri says:

      We heard a similar case with AFPSLAI wherein interest is now separated from principal. Not sure if this is interest earning but definitely the compounding effect is lessened. Must be the association’s way of saving on interest expense to be paid out and managing the longevity of the funds and the company.

  4. jennifer b says:

    15.5% parin po ba ang annual dividend rate?

  5. jennifer b says:

    15.5% per annum parin po ba ang dividend rate?

  6. Geri says:

    This is good to hear! At least your money is working doubly hard to finance your children's schooling.

  7. Anonymous says:

    Matagal na ako associate member ng APSLAI and continuously nag dedeposit quarterly until maabot ko yung maximum deposit amount so I'm comfortable receiving dividends. Almost yung dividend na receive ko quarterly ay nagagamit ko sa pagpapa aral ng 2 anak sa private school, thanks sa APSLAI!

  8. Anonymous says:

    Hi. Pwede pa din po ba magmember mga anak ngaun Asa afpslai?

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