Another Reason to Love BPI's UITF - Part 2

This is a continuation of my post regarding online subscription and redemption of my UITF under BPI. You can read  Part 1 here.

I was not able to use all the funds that I withdrew last week. Being a responsible adult (haha!), I decided to return it to my emergency fund rather than buy something that I'll later regret. I went to my BPI branch and deposited the excess (oh, by the way, those Express Deposit Machines are the best! I don't know why few people are using it.) After which, I added the freshly deposited funds to my existing UITF though online banking. Also, I decided to enroll in their Regular Subscription Plan because I want to return the full amount that I "borrowed" from my emergency fund. Their RSP is an Auto Debit Arrangement wherein a certain amount will be deducted in my savings account and will be added to my investment fund.

Another Reason to Love BPI's UITF - Part 1

For me, going to the bank is such a chore. That's why, I always find ways to automate almost everything. Just last week, I discovered that I can subscribe and redeem my Premium Bond Fund though BPI Express Online. I love it! And I know you'll love it too!

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.