You might think your money is safe just sitting in a savings account, but is it really growing? While it’s easy to assume that keeping your funds parked in the bank is the smart, responsible choice, low interest rates can quietly chip away at your purchasing power. Over time, the gap between savings and earnings can become more costly than you’d expect.
This isn’t just a matter of cents and percentages. If you’re holding a typical bank account in the Philippines, chances are your money isn’t keeping pace with inflation. In a country where price increases affect everything from basic goods to long-term financial goals, relying on low-yield savings could mean falling behind financially without even realizing it.
This article explores how low interest affects your savings in the long run and what you can do to protect and grow your money more effectively.
The Long-Term Cost of Low Interest Rates
It’s easy to overlook just how much low-interest (or low-yield) savings accounts can hold your money back, especially when it seems like your balance isn’t shrinking. But the real cost becomes clear when you factor in inflation. Say you set aside PHP 100,000 in a bank account earning 0.10% interest per year, a rate still offered by many traditional institutions. After five years, you’ll have earned just over PHP 500. After 10 years, barely PHP 1,000. After 20? Not even PHP 2,100. Meanwhile, prices continue to rise, and your money buys less than it used to.
That’s why it matters where you keep your money. Maya, the #1 digital bank in the Philippines, offers a more growth-focused alternative. With Maya Savings, you get a base interest rate of 3.5% per annum, which is significantly higher than what most mainstream banks offer. On top of that, you can boost your rate up to 15% p.a. just by doing everyday transactions like buying prepaid load, paying bills, sending money, or shopping online with your Maya Card.
By staying more financially active, your money doesn’t just sit—it works for you. And since Maya is a Bangko Sentral ng Pilipinas-supervised financial institution, you get the confidence of knowing your funds are safeguarded by the country’s central monetary authority..
Why Many Still Settle for Low-Yield Accounts
For many people, the decision to leave money in a low-yield account isn’t about strategy. It often comes down to familiarity. If you’ve grown up thinking of a savings account as a safe place to park your money, it’s natural to assume that anything more complex might involve unnecessary risk or effort. Add to that the intimidating language around financial products, and it's no surprise that people often stick to what they already know, even if it means earning next to nothing.
There’s also a persistent misconception that higher returns are reserved for those with more money to move around or more time to monitor their finances. That’s no longer the case. Digital banking platforms today make it easier than ever to access better returns through simple, everyday use.
If you’re looking to open a bank account that actually maximizes your savings, you don’t need to leave your house to do it. With Maya, the process is quick and hassle-free. Just download the app, log in, complete the account setup with a few taps, then start saving. And thanks to its robust security features, you can manage your funds securely and effortlessly from day one.
High-Yield Savings and Deposit Accounts: Smarter Ways to Grow Your Savings
Maya Savings is a great place to start if you want more meaningful returns than a traditional account can offer. But it’s not the only option worth exploring. Maya offers other specialized financial products and services designed to help you reach your financial goals in a way that suits your saving style.
If you’re saving for a specific purpose—whether it’s funding a dream vacation, covering school tuition, saving for a new gadget, or preparing for unexpected expenses—you can set up Maya Personal Goals accounts in the Maya app. This digital banking feature lets you create up to five dedicated savings buckets, each tailored to a financial priority, so you can track your progress effortlessly while earning up to 4% p.a. per goal.
For longer-term planning, Maya Time Deposit Plus gives you the option to lock in your savings for a fixed period with interest rates of up to 6% per annum when you hit your target amount and term. You can even top up your deposit until maturity, offering a blend of structure and flexibility that many traditional time deposits don’t allow.
Each one of these tools serves a different purpose, but together, they give you greater control and better returns tailored to your financial habits.
The Case for Starting Early
Imagine two friends, both earning about the same and saving similar amounts. One opens a high-yield digital savings account in their early twenties and develops consistent habits that reward them with stronger returns. The other sticks with a low-yield account and waits until their mid-thirties to make a change. Twenty years later, the gap in their savings isn't just a few thousand pesos; it’s potentially life-changing.
What truly sets them apart isn’t just how much they saved, but when and how they started. Compounding delivers the greatest benefit to those who start early. Even a small deposit, in the right account, can grow into something significant after some time.
The good news is, you don’t need a large balance to begin. What matters most is taking that first step with the right tools. Maya offers high-yield savings options that work for everyday realities, not just ideal scenarios. Whether it’s through Maya Savings, Personal Goals, or Time Deposit Plus, building momentum early can set you up for more financial freedom and rewards down the line.
A low-yield account might feel like the safer choice, but it can quietly limit your financial potential. The sooner you take control, the more possibilities you open up for yourself. If you’re ready to take the first step, explore Maya today. With tools like Maya Savings, Personal Goals, and Time Deposit Plus, you have everything you need to move forward and build a stronger financial future.
