Emergency Fund Placement

I blogged about BPI increasing their minimum SDA requirement to Php 500,000 and my search for other viable investment vehicle where I can put my emergency fund. I'm happy because I was able to place the available funds last week.

Accessibility is one of my main considerations. I should be able to withdraw the funds around 2 days when needs arise. This is the reason why I still keep some in my savings account because money is only one ATM machine away. However, savings account only gives a very minimal interest rate, that's why, I feel the need to put a portion to other investment account that has a higher yield with a manageable risk.

Why, BPI, Why?

In an effort to encourage people to invest in their Short Term Fund, BPI increased the minimum amount requirement to open a Special Deposit Account (SDA) to Php 500,000. Previously, one can open an account for only Php 50,000.

To give you a background, SDA is like a time deposit with a higher yield (lately, I got it at around 2.6-2.8% net of all fees).  SDA is a short-term investment which matures around 30-35 days. However, unlike time deposit, you cannot pre-terminate it. This type of account is not guaranteed by the PDIC, but by BSP - which makes it a relatively safe investment. Perfect placement for some of my emergency funds.