SDAs or Special Deposit Accounts are a favorite investment choice of relatively risk-averse people, Filipinos and foreigners alike, looking to park their money in safe, highly-liquid, but high interest-earning instruments.
Such benefits made special deposit accounts very attractive products, which paved the way for more than P1.658 trillion being parked in the central bank’s SDA facility as of June 15, 2012. How big is this amount? Well, this is almost the size of the Philippines’ 2012 budget of P1.816 trillion.
Such humongous amount of peso placements have both advantages and disadvantages.