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PMT Forum's MOST POPULAR Discussion Boards => General Questions and Discussions about Money => Topic started by: rhadamantus on Nov 28, 2011, 11:18 AM

Title: Where do you keep your emergency fund?
Post by: rhadamantus on Nov 28, 2011, 11:18 AM
i have about six month's worth of living expenses as my emergency fund (i am currently aiming on increasing it to six month's worth of income instead) scattered across time deposits (and a month's worth in my savings account) with several banks.

i would like to know how other people manage theirs.  i am continuously looking for better ways to handle this fund.
Title: Re: Where do you keep your emergency fund?
Post by: samsam on Nov 28, 2011, 11:23 AM
i place ours sa bpi maxi-savers account. hindi namin sya nagagalaw so 2.375% p.a. ang rate nya. readily available pa in case of emergency. :)
Title: Re: Where do you keep your emergency fund?
Post by: switchiz on Nov 28, 2011, 11:24 AM
I keep it in savings deposits. And I have only 1-2 months worth of living expenses.... I figure, I could borrow from my parents if ever I will have money problems... only child lang kasi ako...

Hindi syempre advisable ung ginagawa ko... depende na po sa situation ninyo iyan.
Title: Re: Where do you keep your emergency fund?
Post by: GoodSteward on Nov 28, 2011, 12:23 PM
Me naman sa BDO Money Market Fund and Bond fund nakapark.

Kung ang emergency fund ninyo ay 100,000, then Ok and pinka conservative for me BDO Money market fund. YTD niya is 3.34% NET.

Samsam, please check kung net yun rate? kasi pagkaalam ko less 20 % pa which will give you only 1.9%

Ang disadvantage lang sa BDO Market fund is kung kelangan mo lang as emergency expense at a particular time is 20,000, then no partial termination...out mo dapat lahat....Pero naggain na naman siya....

A  good combo  plan is ilagay sa bpi maxi-saver pag less than 100,000....pag umabot na ng 100k, ilipat sa BDO Money market fund...and vice versa....

Oh wait, @samsam, you mean pagginalaw nyo hindi na siya ganung rate? So that defies the purpose of emergency fund?
Title: Re: Where do you keep your emergency fund?
Post by: rhadamantus on Nov 28, 2011, 12:31 PM
i have not considered money market fund. thanks for the tip, GS. i am going to look it up and see if its worth transferring some funds into that. it is my choice to put my EF in low-risk financial instruments so i am not expecting a high return but a considerable higher rate than TD at an immaterial incremental risk would be nice!

Me naman sa BDO Money Market Fund and Bond fund nakapark.

Kung ang emergency fund ninyo ay 100,000, then Ok and pinka conservative for me BDO Money market fund. YTD niya is 3.34% NET.

Samsam, please check kung net yun rate? kasi pagkaalam ko less 20 % pa which will give you only 1.9%

Ang disadvantage lang sa BDO Market fund is kung kelangan mo lang as emergency expense at a particular time is 20,000, then no partial termination...out mo dapat lahat....Pero naggain na naman siya....

A  good combo  plan is ilagay sa bpi maxi-saver pag less than 100,000....pag umabot na ng 100k, ilipat sa BDO Money market fund...and vice versa....

Oh wait, @samsam, you mean pagginalaw nyo hindi na siya ganung rate? So that defies the purpose of emergency fund?
Title: Re: Where do you keep your emergency fund?
Post by: aris1925 on Nov 28, 2011, 05:19 PM
haha iniipit kung saan saan may kaparehas pla ako nakakalimutan na kung minsan...
 
ako po nilalagay ko sa coop medyo mas malaki konti interest kesa sa bank eh
Title: Re: Where do you keep your emergency fund?
Post by: kiko2007 on Nov 28, 2011, 05:46 PM
 ikeep mine sa coop. good for 3-4 months. then i also have 2 months worth sa gold. bought it back in 2009. wasnt planning to make it emergency fund back then but now, yun ang pagkukunan ko in case something happens. i know not advisable kc volatile ang gold but its working out so far. i can readily sell it in case the price drops at a certain amount and then transfer it sa savings d2 w/ 2.5% int.

i did it para protection sa inflation but not fully exposed and emergency fund ko sa wipeout in case of crashes.
Title: Re: Where do you keep your emergency fund?
Post by: rhadamantus on Nov 28, 2011, 05:53 PM
i do feel i could put it somewhere where it can earn more than TD rate but the nature of the fund (e.g. emergency) really limits the options for me- i would think it is advisable to put an EF with capital preservation as your goal here and where it can easily be withdrawn when you need to.

i have a follow up question here, too. it looks like some people actually have more than 6 months worth of EF. i have never looked beyond six months- i would be interested to find out why others feel they need more than 6 months for their EF.
Title: Re: Where do you keep your emergency fund?
Post by: ferrariEverest on Nov 28, 2011, 06:14 PM
@Sir aris & Sir kiko,
magkano interes sa coop nyo? magkano ang investment?salamat!
Title: Re: Where do you keep your emergency fund?
Post by: Jquiogue on Nov 28, 2011, 07:00 PM
I put it in BDO. Pero i've read a book wherein they suggest you put it in Money Market funds. Problem is, I don't have time to explore the types of Money Markets in the Philippines so far.
Title: Re: Where do you keep your emergency fund?
Post by: aris1925 on Nov 28, 2011, 07:58 PM
@Sir aris & Sir kiko,
magkano interes sa coop nyo? magkano ang investment?salamat!



4% to 6% lang po time deposit depending sa amount and term...pero pag niwithdraw ng ala pa sa maturity date icompute nila as savings account ung interest earned which is 3% sir..
Title: Re: Where do you keep your emergency fund?
Post by: kiko2007 on Nov 29, 2011, 11:34 AM
yung sakin kc depende e. 3% on months na me pggagamitan. minsan nakatambay lng yung funds dun. so far it grew arnd 30% of the total in 3 yrs since i start. note that when i started, hindi lump sum ang hinulog ko.

min investment b4 was 100k.

meron dw ang think rich pinoy na ganitong syle din but malaki ang capital. arnd 1million ata ang minimum. too much 4 me though.

Title: Re: Where do you keep your emergency fund?
Post by: Bp22estafa on Nov 29, 2011, 04:45 PM
some of you brought up investing in a coop. saan ko makikita yang mga yan? which gov't agency oversees their operations & insured rin ba sila in case they folded? how about their interest rates?
Title: Re: Where do you keep your emergency fund?
Post by: palailai on Nov 29, 2011, 04:53 PM
I'm a member of First Community Cooperative (www.ficco.org) and Tagum Cooperative (www.tagumcoop.org)...
Title: Re: Where do you keep your emergency fund?
Post by: kiko2007 on Nov 30, 2011, 01:15 AM
not sure if they are insured. i dont think they are, though. they do have annual reports so you can check their performance and how they move money. requirement ata yung annual report for every coop.
i think CDA yung mayhawak sa mga coop.
Title: Re: Where do you keep your emergency fund?
Post by: luranski on Dec 17, 2011, 05:07 PM
BDO Bond fund for me...
Title: Re: Where do you keep your emergency fund?
Post by: wintan2006 on Dec 17, 2011, 05:52 PM

             Sa akin SDA ng metrobank.
Title: Re: Where do you keep your emergency fund?
Post by: DonT on Dec 17, 2011, 05:56 PM
Me naman sa BDO Money Market Fund and Bond fund nakapark.
I'm with GS. BDO MMF is a good place to park any funds. Kahit naka park siya dyan...it is still better than savings account.

BDO Bond fund has better returns..pero it still has stock component..kaya it reacts to the market. unlike the MM.
Title: Re: Where do you keep your emergency fund?
Post by: pulubing_palaboy on Dec 18, 2011, 12:32 AM
depende kung gaano kalaki yung emergency
Title: Re: Where do you keep your emergency fund?
Post by: shark on Dec 19, 2011, 01:49 PM
I,m saving up sa sterling bank
Title: Re: Where do you keep your emergency fund?
Post by: kimerran on Dec 19, 2011, 01:53 PM
nagiipon ako ng emergency fund,
nasa paluwagan ito sa ngayon, :p
Title: Re: Where do you keep your emergency fund?
Post by: mackygoof on Dec 19, 2011, 02:03 PM
Savings account because i can withdraw any day and any time i want to in case of emergency on anywhere in the country via ATM machine.
The rest of the money either invested on stocks or VUL.
Title: Re: Where do you keep your emergency fund?
Post by: luranski on Dec 22, 2011, 09:55 PM
credit cooperative... hehe
Title: Re: Where do you keep your emergency fund?
Post by: microcube22 on Feb 26, 2012, 04:49 AM
I put it in Time Deposit. I might take a bit of a hit if I widraw early but at least it earns a decent interest while I dont need it.
Title: Re: Where do you keep your emergency fund?
Post by: freelancer_babe on Feb 26, 2012, 08:27 AM
Partly in a Savings ATM, other in an SDA.

I decided not to get an HMO, so the savings ATM should help in health-related emergencies.

Mas malakas pala ang loob ng mga nandito - bond funds, money markets and coops!
Title: Re: Where do you keep your emergency fund?
Post by: nepenthe on Feb 26, 2012, 12:34 PM
rollover 30,60,90 days saan po bnk maganda magpark ng ef :help:
Title: Re: Where do you keep your emergency fund?
Post by: freelancer_babe on Feb 26, 2012, 02:08 PM
Chinabank, BPI Family, BPI Direct.. in that order.
Title: Re: Where do you keep your emergency fund?
Post by: nepenthe on Feb 26, 2012, 02:16 PM
Chinabank, BPI Family, BPI Direct.. in that order.

thanks!
Title: Re: Where do you keep your emergency fund?
Post by: bauer on Feb 27, 2012, 12:17 PM
nagiipon ako ng emergency fund,
nasa paluwagan ito sa ngayon, :p

sa tingin ko hindi emergency fund ang paluwagan. it is an investment.
Title: Re: Where do you keep your emergency fund?
Post by: jenxent on Feb 27, 2012, 12:53 PM
nasa bank lang yung emergency fund ko para easy access  :hihi:
Title: Re: Where do you keep your emergency fund?
Post by: ferrariEverest on Feb 27, 2012, 01:03 PM
Chinabank, BPI Family, BPI Direct.. in that order.
may i ask, why so?
ibig ba sabihin, mayroong product na 'mas ok' sa Chinabank than BPI?
Title: Re: Where do you keep your emergency fund?
Post by: krsitine020 on Feb 27, 2012, 01:43 PM
i think mas mganda sa bdo
kc mas mrami clang branches
and sure ka na safe yung money mo  :cool2:
 :applause: :applause: :applause:
Title: Re: Where do you keep your emergency fund?
Post by: pilyong_husband on Feb 27, 2012, 02:14 PM
i think mas mganda sa bdo
kc mas mrami clang branches
and sure ka na safe yung money mo  :cool2:
 :applause: :applause: :applause:

Are you sure it is safe?

http://www.remate.ph/2012/02/dollar-account-ng-ofw-nilimas-ng-bdo-teller/
Title: Re: Where do you keep your emergency fund?
Post by: research_solutions on Feb 28, 2012, 07:14 AM
sa akin
expenses = ATM
Emergency Fund = BPI Direct 1st account
Investment fund to be used to purchase UITFs waiting for mini-dips = BPI Direct 2nd account

Title: Re: Where do you keep your emergency fund?
Post by: happyknappy on Feb 28, 2012, 07:36 AM
Are you sure it is safe?

http://www.remate.ph/2012/02/dollar-account-ng-ofw-nilimas-ng-bdo-teller/
nai balik na yan FYI... :)

emergeny fund - UITF short term fund..
Title: Re: Where do you keep your emergency fund?
Post by: decapolis on Mar 18, 2012, 03:20 AM
Im still building my 6 months worth of emergency fund ... Already saved 2 mos worth of my monthly expenses ... 4 months to go ahuhuhu

Its in my BPI Premium Bond Fund
Title: Re: Where do you keep your emergency fund?
Post by: DonT on Mar 18, 2012, 11:56 AM
^Goodluck..just be patient...and you'll get there
Title: Re: Where do you keep your emergency fund?
Post by: jenxent on Mar 19, 2012, 10:36 AM
Im still building my 6 months worth of emergency fund ... Already saved 2 mos worth of my monthly expenses ... 4 months to go ahuhuhu

Its in my BPI Premium Bond Fund

goodluck sir,sana marami pang pinoy ang gagaya sa inyo... :winner:
Title: Re: Where do you keep your emergency fund?
Post by: sphinxz on Aug 28, 2012, 02:13 PM
hi :) need info and advices regarding emergency funds.
currently, I have investments/savings in MFs, SDA, regular savings accounts and Multipurpose Cooperative.

Can I consider the following as emergency fund? a) SDA b) cooperative share capital?

Based on the posts here, I can consider investing in short term funds as an emergency fund. Having this, which is more beneficial, investing a major part of my savings account in a Short Term MF or a Short Term UITF?

Does the UITF have more advantage in terms of security, liquidity and accessibility (online status checking and redemption) if I immediately need the money considering they are offered by banks?

Thanks
Title: Re: Where do you keep your emergency fund?
Post by: kithe on Aug 28, 2012, 03:00 PM
Emergency means it can happen anytime..
Pwede sa regular savings deposit lang, mas okay kung may ATM, kasi kahit holiday and you need the money, you can withdraw it..
Title: Re: Where do you keep your emergency fund?
Post by: jaolave23 on Aug 28, 2012, 03:05 PM
Based on the posts here, I can consider investing in short term funds as an emergency fund. Having this, which is more beneficial, investing a major part of my savings account in a Short Term MF or a Short Term UITF?

Emergency funds are there obviously for emergencies so I believe it's wise to park your fund where you can have access to it as soon as you need it. The rate of return is secondary (nice to have but not necessary). This information (liquidity of the fund) is provided by banks or mutual fund companies together with the details of their investment products. You want to make sure there are no penalties for withdrawing your emergency fund when you need it. Otherwise, that's not where you want your money to be in.
Title: Re: Where do you keep your emergency fund?
Post by: pmtmember on Aug 28, 2012, 05:22 PM
i park it sa bank
Title: Re: Where do you keep your emergency fund?
Post by: ant0ni0_01 on Sep 01, 2012, 10:32 AM
Me naman sa BDO Money Market Fund and Bond fund nakapark.

Kung ang emergency fund ninyo ay 100,000, then Ok and pinka conservative for me BDO Money market fund. YTD niya is 3.34% NET.

Samsam, please check kung net yun rate? kasi pagkaalam ko less 20 % pa which will give you only 1.9%

Ang disadvantage lang sa BDO Market fund is kung kelangan mo lang as emergency expense at a particular time is 20,000, then no partial termination...out mo dapat lahat....Pero naggain na naman siya....

A  good combo  plan is ilagay sa bpi maxi-saver pag less than 100,000....pag umabot na ng 100k, ilipat sa BDO Money market fund...and vice versa....

Oh wait, @samsam, you mean pagginalaw nyo hindi na siya ganung rate? So that defies the purpose of emergency fund?

Hi, my emergency fund is now presently parked in SDA. Would it be wiser to move it to the BDO money market fund? What is the difference in rates?
Title: Re: Where do you keep your emergency fund?
Post by: jaolave23 on Oct 09, 2012, 11:20 AM
I think SDA shouldn't be thought of as a parking spot for emergency funds at all.
Title: Re: Where do you keep your emergency fund?
Post by: darkknight on Oct 09, 2012, 02:39 PM
I think SDA shouldn't be thought of as a parking spot for emergency funds at all.
Any specific reasons why I should not park my emergency funds at SDA,please? :help:
Title: Re: Where do you keep your emergency fund?
Post by: freefront on Oct 09, 2012, 08:08 PM
 
I think SDA shouldn't be thought of as a parking spot for emergency funds at all.
Any specific reasons why I should not park my emergency funds at SDA,please? :help:

^The way i understood how SDA works: the money is usually in big tranches of 500K-1M per placement( varies in every bank), and 100K in subsequent additional placements. You can opt to do compounding interest or take out the interest at the end of the 30-day term (the shortest). All the interest earned from the prior placement will be plowed back up to the nearest hundreds. There is no pre-termination because the bank which made the placement for you "sent" and "lent" the money to the Central Bank, and not to their own borrowers. It is out of their hands, so to speak. They are no longer responsible for it, therefore, can no longer be talking to you until the CB returns it. So, if you are anticipating the use of your money in SDA, drop by the bank with the instruction that your money won't be placed in a new term after the current term matures. It will then stay in your savings account earning the prevailing annual rate on savings.

IMO, SDA can still be used as a parking investment vehicle for your savings, but, as a thirdliner. First would be your savings account, then your time deposits or maybe UITFs( if you want to chance the volatility and the bother of pre-terminating and re-investing the part of the funds you won't need). The bank people usually recommend that you use an SDA to sort of guarantee the one year contract when you rent a safety deposit box inside their premises or you already have a program to pay a purchase in, say, 6 months.
Title: Re: Where do you keep your emergency fund?
Post by: freelancer_babe on Oct 10, 2012, 04:36 AM
I wonder where @jaolave23 and @darkknight got the idea of not parking money in SDA's.

SDA's are one of the excellent places to put in a portion of your emergency funds!!! (You may opt not to put all your emergency fund in SDA's for liquidity.)

@freefront is right about how SDAs work. These are very similar to time deposits except that pretermination is not allowed. Unlike time deposits though, these are not subject to PDIC's coverage - because the money goes straight to the BSP, so the bank is merely a placement channel. Pretty much stable than banks, I'd say, because it will take a war or a major economic downfall in our country not to be able to get the money invested in BSP. Do take note that BSP is MOAB - Mother Of All Banks!

Most banks require millions of pesos in placements, but I know of only two banks that offer "affordable" placements. BPI, which allows you to open an SDA at P50,000 and Security Bank, at P100,000. However, do take note that the other banks with millions of placements generally offer better interest rates (so you get more out from your millions of money) than BPI and Security Bank.

Quite off-topic, but mentioned anyway on @freefront's post. BPI does allows their clients to rent safety deposit boxes after maintaining only around a total of P100,000 in one or more BPI bank accounts (savings, checking, time) for six consecutive months. It is a good thing to know that this bank do not require SDA's to be opened just for a safety deposit box.
Title: Re: Where do you keep your emergency fund?
Post by: IGX on Oct 10, 2012, 07:32 AM
Hi Freelance_Babe,

Maybe @Joalave23 and @Darknight suggested not to put money in SDA's because of its low rate?

I have money in SDA (BPI) and the rate is very low, it doesn't even come near to TD's of other banks.
Title: Re: Where do you keep your emergency fund?
Post by: freelancer_babe on Oct 10, 2012, 07:56 AM
Maybe @Joalave23 and @Darknight suggested not to put money in SDA's because of its low rate?

Siguro nga. Emergency funds shouldn't be put in very risky investments. Tama ba naman na ilagay ang emergency funds sa stock market? Or sa business? Maling kutob lang lahat ng capital na nainvest pwedeng mawala. :-p

Well, the only loss that you get is that the purchasing power of money goes down when using savings, time deposit or SDAs, usually after only one year - but at least you're not losing the entire principal. It is advisable to save up another fund for investing, separate to that emergency fund, that you can use for higher yielding investments and businesses.

I have money in SDA (BPI) and the rate is very low, it doesn't even come near to TD's of other banks.

Bakit mababa ang SDA mo? it's usually lower than TD, unless you've invested on rural or even savings banks.

I consider putting money in rural banks as an investment. Hindi rin safe ang pera doon.
Title: Re: Where do you keep your emergency fund?
Post by: IGX on Oct 10, 2012, 08:54 AM
Bakit mababa ang SDA mo? it's usually lower than TD, unless you've invested on rural or even savings banks.

Hi Freelance babe,

Medyo mababa nga, I get around 2.3% net with my SDA.  Any idea what is the current market rate?  Baka mababa bigay sa akin ng BPI.

With other banks (not rural, not savings), I am given a rate of 3.5 to 3.75% (gross), net is around 2.8% to 3% which is still higher than the SDA Net Rate.

This makes me want to decide taking out my SDA and moving it to other banks / investments.
Title: Re: Where do you keep your emergency fund?
Post by: freelancer_babe on Oct 10, 2012, 09:11 AM
This makes me want to decide taking out my SDA and moving it to other banks / investments.

If this is true, then why not? I-punta mo muna sa time deposit. :-D

As far as I know the SDA are fixed for each bank and don't vary with every client. Do some window shopping on different banks and check their rates.

I haven't done much research lately so I am not updated. Maybe the others could help.
Title: Re: Where do you keep your emergency fund?
Post by: wiggy on Oct 10, 2012, 10:23 AM
Thank you for the wonderful discussion above.

Anyway for me, just my opinion, go for an SDA (central bank's) if:

* You are after of the "safety" of your money and not the interest rate. It is logical to think that worst comes to worst, if all banks will eventually close, central banks will be the last one to go down (after all efforts were exhausted). Medyo pahirapan din kasi to reclaim your money from PDIC.

* If your cash is beyond what PDIC can cover. Yun ang problema mo, mashado ka maraming cash, hindi mo alam kung saan itatago! Though you can deposit in chunks (equal to PDIC coverage amount) to different banks. Like if you have 20M, you divide it in 500k chunks and deposit them to different 'steady and safe' banks. Or you can opt to put them all in SDA in one go.

But for an average worker's emergency fund, he should seek balance between the "safety" of his money and opportunity for growth (thru interest).
Title: Re: Where do you keep your emergency fund?
Post by: darkknight on Oct 10, 2012, 11:36 AM
I would like to make clarifications regarding...Any specific reasons why I should not park my emergency funds at SDA,please?
Some PMT members were misquoting me.I want to clarify that I am not against the idea of parking emergency funds at SDA.I am asking jaolabe23 any specific reasons why i should not.
Telling you the truth,I've just opened my first SDA at BPI with the rate of 2.63 % p.a.yesterday.The rate of TD was 1.83% p.a. lower than SDA. :hello:
Title: Re: Where do you keep your emergency fund?
Post by: freefront on Oct 11, 2012, 01:48 PM
^Emergency- you need liquidity. There is no pre-termination in SDA.
Title: Re: Where do you keep your emergency fund?
Post by: GIG on Oct 18, 2012, 09:33 AM
key word here is safety and ease of access. Its an emergency fund its not for investing etc. So best to keep it in a separate atm savings account on the big 3 banks ie. bpi,metro or bdo. If you cant keep your hands from it, better leave the atm at home though hahaha!
Title: Re: Where do you keep your emergency fund?
Post by: brians on Oct 18, 2012, 09:56 AM
emergency fund? sa bahay sa safe
Title: Re: Where do you keep your emergency fund?
Post by: freefront on Oct 18, 2012, 12:39 PM
^I have a cash box na pinalagyan ko ng combination padlock sa bahay. Minsan, kinailangan may itakbo sa emergency room and my niece called me for money. Ibinigay ko yung current na combination. Wala lang---trip lang nyang magpasaya, kinuha lahat yung 5 thousand na puro 100 crisp bills at yun ang inilatag sa cashier  :hihi:  I usually change the combination after I've replenished the box.
Title: Re: Where do you keep your emergency fund?
Post by: GIG on Oct 18, 2012, 03:51 PM
@freefront

openly applying to be your nephew hahaha!
Title: Re: Where do you keep your emergency fund?
Post by: freefront on Oct 18, 2012, 07:35 PM
@freefront

openly applying to be your nephew hahaha!

Application denied!  :D May pila pati hehehe...sa spaghetti sauce pa lang na hindi ko maulit-ulit ang timpla, hindi ko na sila maipag-hanapbuhay  :hihi:
Title: Re: Where do you keep your emergency fund?
Post by: GIG on Oct 18, 2012, 07:45 PM
awww! spaghetti tester na langpwede? hahaha!
Title: Re: Where do you keep your emergency fund?
Post by: mlangseth on Oct 18, 2012, 09:34 PM
Emergency funds need to be liquid all the time..Money market or checking/savings..at least x 8 of your present salary according to Suze Orman.