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Stock market investments can offer high returns, especially for those who are willing to take on more risk and stay invested for the long term. However, it isn’t always the best fit for everyone. The value of stocks can be volatile, with prices influenced by factors like market sentiment, economic conditions, and individual company performance. For some Filipinos who are new to investing or have a low tolerance for risk, this unpredictability can be discouraging.
Instead, many people prefer to grow their money through more stable and predictable instruments. Fortunately, several lower-risk alternatives in the Philippines allow you to grow your savings with confidence and minimal volatility. While these don’t promise the same high gains that stock investing might, they also come with fewer risks and more predictable outcomes, making them a practical choice for conservative savers.
Here are some of these alternatives to stock investing that can help you build your wealth at a pace and with a level of risk you’re more comfortable with.
1. High-Yield Savings Accounts
Unlike conventional savings accounts that typically offer interest rates of a fraction of 1% per year, many digital banks in the Philippines now provide high-yield savings accounts with higher interest rates. Particularly, Maya Savings Account offers a base interest rate of 3.5% p.a. that you can boost up to 15% interest p.a., which makes it an attractive alternative to stock investments.All you have to do is use Maya for your everyday transactions, like paying online, buying prepaid load, paying your bills, using Maya Easy Credit, or paying via QR Ph. Maya also makes it easy to open a bank account in the Philippines, with the entire process able to be completed on the Maya app. Maya Savings also doesn’t require a minimum deposit or a maintaining balance, which means you can deposit as much or as little. Moreover, because Maya, the country’s #1 digital bank, is a Bangko Sentral ng Pilipinas-supervised financial institution (BSFI), it’s also subject to the same safeguards as traditional banks, giving you peace of mind even as you grow your funds.
2. Goal-Based Savings Accounts
Another innovative offering your digital bank might offer is a goal-based savings account. In the case of Maya Personal Goals, it allows you to allocate your funds into separate goal accounts for which you can give a name, a due date, and a goal amount. You can create up to five goal accounts in your savings dashboard and set a due date of up to 180 days. The best part about this saving tool is that all Maya Personal Goals start with a guaranteed 4% interest p.a.
Since goal-based savings accounts are separate from your main account, it reduces the temptation to spend money allocated for specific objectives. This setup also lets you track your progress toward each goal and build the habit of saving regularly for different needs. If you’re someone who prefers structure and visual tracking in your financial journey, this is an excellent tool to help you stay focused without taking any investment risk.
3. Time Deposit Accounts
If you’re willing to set aside a portion of your funds for a fixed period in exchange for guaranteed returns, time deposit accounts could be the right choice for you. These accounts are offered by traditional banks and digital platforms alike in the Philippines. With Maya Time Deposit, for instance, you commit your money for terms of 3, 6 or 12 months. In return, Maya pays you a guaranteed 3.5% p.a. that you can boost up to 6.00% p.a. when you reach your target amount and date.
The key benefit of Maya Time Deposit accounts is that your returns are guaranteed and predictable, making it ideal if you are a conservative saver.
However, you should also note that you typically can’t withdraw money from your time deposit account before its due date. In some cases, you’ll be able to do this, but your funds will be subject to fees. Because of this, time deposits are most suitable as a medium-term option, where you’re sure that you won’t need immediate access to your funds. Regardless, it’s a very good way to grow savings without exposure to market risks.
4. Modified Pag-IBIG 2 (MP2) Savings Program
The Modified Pag-IBIG II (MP2) Savings Program is a government-backed savings plan designed specifically for Pag-IBIG members who want to earn higher returns than the regular Pag-IBIG savings. It is voluntary and open to all active members, including OFWs and retirees who still have Pag-IBIG contributions. What makes MP2 so appealing is its tax-free dividends, which have historically ranged between 6% to 8% annually.
The MP2 program also has a five-year term, and you can either claim your dividends yearly or choose to let them compound until maturity. Because it's backed by the government, it’s considered a very low-risk option with better-than-average returns. It’s especially suitable for individuals who want to set aside money for a mid- to long-term goal. Even better, the minimum contribution is just PHP 500, making it highly accessible for many Filipinos.
5. Government and Corporate Bonds
Bonds are essentially loans that investors provide to the government or corporations in exchange for fixed interest payments over time. The Philippine government regularly issues Retail Treasury Bonds (RTBs) and Premyo Bonds, which can be purchased by individual investors through banks or even online platforms during public offerings. The minimum investment can be as low as PHP 5,000, and the tenure usually ranges from three to five years.
These government bonds are considered very safe, especially since they are backed by the full credit of the Republic of the Philippines. On the other hand, corporate bonds are slightly riskier because of business risks, but they often offer higher interest rates and are issued by large, established companies. Both types of bonds are ideal for people who want steady, fixed income over time and can afford to hold their investment until maturity.
6. UITFs and Mutual Funds (Non-Equity Options)
If you’re interested in investment products that are professionally managed but want to avoid the risks tied to the stock market, you can look into Unit Investment Trust Funds (UITFs) and mutual funds that are focused on fixed-income securities such as bond funds and money market funds. These products are offered by banks and licensed financial companies.
Non-equity UITFs and mutual funds don’t invest in the stock market; instead, they focus on government securities, corporate bonds, or time deposits, making them less volatile. The risk is still slightly higher than just keeping your money in the bank, but the returns are typically more favorable. Some funds can be opened with as little as PHP 1,000, and you can monitor performance through online dashboards or mobile apps. For individuals who want to grow their money passively without direct exposure to the stock market, these managed funds are a solid option.
Not all paths to growing your savings require taking on high risk. Whether you're just starting your savings journey or looking to diversify beyond your bank account, these tools can help you make your money work harder. The key is to research and choose wisely based on what suits your lifestyle and plans best.
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