Year: 2017

How do you maximize growth of your money when you have no time put up a business and have a low risk tolerance for investment?

Time deposits may be the right answer for you.

In the history of banking, no other product has better served the financial needs of depositors than the time deposit.

Leveraging on the principles of time and compounding, a depositor can use the bank as a tool to grow money more than what is earned in a traditional savings account.

If you are unfamiliar with this easy strategy to earn more money, read on to learn about the amazing benefits of making a time deposit:

Compounding Multiplies Your  Money

Also called ‘Term Deposit,” a time deposit usually has a higher interest rate compared to a traditional savings account.  Since there is a specified time that your deposit is held in the bank, say 30 days to 90 days, the amount can be used by the bank for other investments or for its lending operations.

The bank also has more time to get back its profit from those investments or lending operations, a part of which is paid back to the depositor as interest.  In some cases, a time deposit has a 180-day holding period which is far different from a traditional savings account where a depositor has access to the funds at all times.

Some banks have time deposit products that mature in two years to as long as six years, or even longer. The longer the time deposit, the greater the yield.

Now, how does compounding positively affect your time deposit?

Let’s say you invest P10,000 in a time deposit with a 5% interest that would mature in one year.  After 12 months, your initial P10, 000 would have earned P500 in interest.  So the balance of your time deposit account would now be P10,500 — without doing anything except allowing your money to stay in the bank for the specified time period.  These days, a traditional savings account only has a 0.25% interest rate per annum, which is way below what you could earn from the interest rate for a time deposit.

Little to No Risk, Guaranteed Gain

Another clear benefit of a time deposit is the fact that all you need to do is to agree to the terms set by the bank and wait for it to mature.  No labor required from you to earn interest but the gain is guaranteed by the bank.

A time deposit is also less risky as compared to entering the stock market, establishing a new business, or even investing in real estate.

 Waiting Time is Your Choice

As mentioned above, there are different maturity periods for time deposits. That means you can choose how long you will wait for the deposit to mature.  The longer you wait, the higher the income in terms of interest. But in case you know exactly when you need your money, you can always choose the shorter term deposits.

Indeed, a time deposit is a wise investment tool that allows you to have the power of choice and provides you the chance to grow your money with little effort and risk.

There are 2.4 Million Filipinos working overseas across the globe. Most, if not all, remit huge sums of money regularly to support their families in the Philippines.

Even with their well-paying jobs, it seems that many overseas workers still need to learn the financial skill of saving money so that they can have a good life now and during retirement.

How much money do overseas workers really earn? Records show that for the month of April 2017 alone, the total remittances amounted to a staggering US$2.083 Billion. The sheer amount of remittances by overseas workers makes them literal heroes of the country. Through hard work and sacrifice, they are able to collectively remit billions of dollars that help keep the country’s economy afloat.

Despite their ability to work and earn large amounts of money, many of overseas workers are still financially challenged. It is not uncommon to hear of a retired overseas worker who has very little or nothing left even after 20 years or more abroad. Worse, some of them fall into serious debt even after earning good money from their overseas work.  Their financial challenges eventually impact themselves and their families, and ultimately, the country’s economic situation.

Financial success, as one expert once said, is not about how much you earn… it is about how much you keep and how much you grow what you’ve earned. Sadly, not a few overseas workers have learned this truth the hard way.  Some have accumulated tons of debt, others have lost their hard-earned cash because of frivolous spending, while others have remitted their money to the family which, in turn, wasted ever single cent.

Clearly, every overseas worker needs to be smart with money. Being smart with money starts with following these simple but indispensable tips to financial success:

Stick to a Budget.  Sticking to a budget is a must not only for the overseas worker but for the rest of the family that receives and uses the cash remittance. Living abroad, the loneliness caused by separation from one’s family may cause an overseas worker to turn to palliatives to soothe the suffering. For many, this palliative is mindless shopping for one’s self and for the loved ones back home. While each and every shopping trip may be an act of love for one’s family, the package of presents later on become a gaping hole where money is lost. Having no control over one’s shopping habits also makes an overseas worker fall into the trap of excessive materialism, which also drains the purse. In short, knowing the difference between needs and wants must be the first order of the day. Strictly following a budget is definitely something what every overseas worker needs to do.

Pay-Off Debts. Having unpaid debt is like storing water in a bucket full of holes. It is wise to set aside money every payday to pay for debts. One cannot effectively save money if there is still debt that is not paid for in full. Specifically for credit card debt, it is best to pay off the credit card debt with the bank that has the highest interest rate. It is also advisable to research on debt consolidation so that you only pay one interest rate on a single debt instead of paying of several banks.

Avoid Debt. Logically, one needs to avoid incurring more debt. As mentioned above, one needs to stick to a strict budget to avoid spending more than what one has earned.  For credit cards, some people have done the extreme of actually cutting off all their ‘plastic’. Some realistically just keep one credit card but only use for real, pressing financial needs such as a medical emergency and never for shopping, eating out, or going on vacations.

Invest. Once every single debt has been paid, an overseas worker can focus on growing his or her hard-earned money.  There are many investment tools available that offer higher returns than the interest rates from the bank. Placing money on mutual funds and other paper investments are good options for those who have time to study these types of financial tools and platforms. For the traditional investor, buying real estate such as condominium unit or apartment that can be rented out is a good source of passive income.

Get Financially Educated.  Getting rid of debt, managing one’s budget, and investing to grow money take financial education. Learning about how banks work, the different types of investments, or perhaps running one’s own business takes knowledge and discipline. Reading books, going to seminars, or even hiring a financial adviser are wise steps to take in order to improve one’s ability to build wealth over time. A simple but good example is knowing which is more efficient, sending money remittances via traditional banks or through established remittance companies like Cebuana Lhuillier. Comparing the transaction charges would clearly give an idea which one is more overseas worker-friendly.

By following these simple tips, an overseas worker regardless of profession or salary scale, can indeed stretch the money to meet present needs and better still, send more to the family so that could invest and prepare for the future.

In the past, a person who needs extra cash would have to travel all the way to the nearest pawn shop. Bringing his or her item to be pawned was an extra burden because of the cost of fuel if one is driving a car, or the fare to be spent for a taxi or bus. Added to the burden is the risk of carrying around an expensive or heavy item all the way to the pawnshop. Once the pawnshop is reached, falling in line to wait for one’s turn to be appraised also consumes time and effort.

Today, one does not need to go through all that hassle. Leveraging the power of information and communications technology, the 21^st century pawnshop is now online.

Online pawning is the latest method or platform for getting extra cash by pawning an item with monetary value. Unlike traditional pawning at a brick-and-mortar establishment, online pawning is definitely time-efficient, easy, and usually offers more cash to meet your need.

So how does Online Pawning work?

Typically, one has to register and have an online account with an online pawning service.  With a stable internet connection, a person can use his or her phone, computer, or any other gadget to access the online pawning service.

The next step is to take a photo or upload an image of the item to be pawned onto the online pawning site. The online appraisers will examine the photo and usually take only a few minutes to send back a reply. Once your item is approved, the online pawning service will schedule a pickup at your preferred address.  They have authorized couriers who will come to receive and handle the pawned item.  Once your item has been appraised and approved, the online pawning service will deposit the corresponding amount to your own bank account or use other convenient payout options.

These are some of the outstanding benefits or advantages of Online Pawning:

High appraisals

Online pawning offers a higher appraisal than the brick-and-mortar pawnshop because of lower overhead costs to run the business. A traditional pawnshop takes an enormous amount of money to set-up beginning with construction costs that could easily go take hundreds of thousands if not millions of pesos. Aside from construction costs, the traditional pawnshop has overhead costs for water, electricity, rent or lease (if building is not owned by the company), salaries for the staff and security guards, security equipment such as CCTVs, to name a few.

Since online pawning relies more on technology rather than physical infrastructure and other business expenses, the pawning company need not pass on the cost to the customer in the form of high interest rates.

No need to leave your home or office, save time and effort

Using an online pawning service is also a great time-saver.  There is absolutely no need to drive all the way or take public transport to reach the nearest pawnshop.  The online accessibility of the service allows a person to avoid the time-wasting and stressful travel through the city’s heavy traffic or during inclement weather. Since the online pawning service will also send couriers to pick up the approved item, all you have to do is wait for them to arrive.  So the pawnshop literally comes to you and benefits from the online pawning service can be accessed using wi-fi and your fingertips.

Tech-Enabled Transactions

By using technology, pawning an item online is so much easier. You are able to make the transaction anywhere you are. This advantage is especially relevant and useful to Millennials who are perhaps the most tech-savvy generation in all of human history. No need to fill-out forms and physically bring the item to be pawned to the shop.  Online help for your financial needs has never been this convenient.

Indeed, with all these unique advantages, online pawning is one of the best ways to handle emergencies and meet your financial needs.

The old folk song says it all:  “Magtanim ay ‘di biro…”

It is not an exaggeration to state that farming in the Philippines may be considered a tough business or source of livelihood.  It is an endeavor surrounded by risk and hardship.

Aside from the seasonal typhoons that wreak havoc on crops, farmers also contend with the threat of El Niño and La Niña, insect and fungal infestation, and fluctuations in crop prices in the market. Another major challenge is the fact that the average age of the Filipino farmer is now at 57 years old.

For these reasons, the average farmer needs all the help he can get especially in the aspect of micro-financing.  From planting the seeds, to growing the crops, up to harvest time and bringing the crops to market, the farmer needs cash to support his livelihood.

The good news is, microfinancing is available to small-scale farmers from Cebuana Lhuillier Bank.  Aside from being the country’s top pawning and money remittance facility, Cebuana Lhuillier Bank has embarked on yet another excellent service — this time to assist our country’s farmers who literally keep the country alive by being at the center of food production.

Through special loans designed for the needs of the Filipino farmer, Cebuana Lhuillier is able to extend a lifeline to thousands if not millions of farmers who toil under the hot sun in order to produce food.  These loans are easy to apply for, processed fast, and are truly accessible to farmers from different scales of land, types of crops, and production capacity.

With an agricultural loan, a struggling farmer can buy new seeds after his previously planted crops were wiped out by a storm.  With a timely yet easy-to-pay loan, a farmer who is burdened by limited water supply now has the cash to invest in irrigation equipment.  Farmers who face challenges during harvest time can buy additional tools or equipment to improve productivity, which is made possible through an agricultural loan from Cebuana Lhuillier.

Simple Loan Processing. When a farmer visits Cebuana Lhuillier Bank, they won’t be hassled by long forms to sign or by a lengthy list of requirements.  The bank knows that the needs of farmers are urgent and further delays could only cause more damage to crops and to the farmer’s livelihood.

Fast Transactions.  Farmers play a critical role in society in terms of making sure that every table in every home receives food, especially rice which is the staple of the Filipino family.  They can only perform this important role if they are able to transact fast and without delay, most critically during times when they need financial assistance for the farm. Cebuana Lhuillier Bank makes sure that transactions are swift and efficient so every farmer can focus on growing their farm and producing the food that our families need.

Easy to Pay.  Knowing the true conditions of farmers and the challenges they face each day, Cebuana Lhuillier Bank has structured its agricultural loans in a way that favors the small-scale farmer.  Interest rates are kept at a minimum and the loan payment schedules are flexible enough to jibe with the pace of farm production and typical cash flow of small-scale farmers.

While farming is certainly no joke given its inherent challenges, farmers can truly find a reason to sing with the agricultural loans made available to them. By using these financial tools wisely, our farmers can achieve the success they’ve always dreamed of while keeping our nation’s food supply steady and strong.

Maintaining your household budget is not easy, yet it is manageable. You may be surprised of the huge amount of effort moms exert just to make ends meet. Utility bills are also not getting any lower, which is why certain aspects of the expenses put into your home must be stretched, in order to fill in the gap or days leading up to your pay day. In such case, there are various ways to manage your household budget, perhaps make it last for weeks without sacrificing any of your family’s needs. What follows are tips that you may apply in order to reduce expenses, and even save up for possible future needs:

Separate needs from wants.

Avoid giving in to the urge to buy expensive gadgets and apparel. This is one major factor that may quickly deplete your household budget. Food and beverage is priority, health care comes after that, and utilities (bills) are last, but not the least.

Prepare an emergency fund.

Some things can happen in a flash, leaving you unprepared at times. This is the main reason why you must set a few amount per month for your emergency fund. These do not literally portray accidents and illness, as there are other forms of emergencies, such as a shortage of food or utility payments.

Settle all of your debts.

Before you begin planning on how to save, focus on settling your debts. This is very important as some debts (such as bills) may incur penalty charges, and thus even leading to the disconnection of your services like the electricity and landline.

Base your budget from your earnings.

You cannot make realistic goals with unrealistic earnings. This means that depending on your monthly income, your savings would only be a percentage from those. You may try to set a 10% from your salary to be deposited at the bank, however, that percentage varies and may be affected by your needs as well.

Insure your properties.

Add this as a major factor to your household budget. Insurance may require you to pay monthly, however, having your car (and even your home) enlisted may save you a lot, especially as the Philippines is a typhoon prone country, and properties may get damaged due to constant storms. This will help you manage your household finances more, given that you’ll be saving big with insurance.

When it comes to sudden expenditures and unpredictable charges, you can never be too sure, so you must always be prepared. One great example is property damages due to calamities. It is a heavy burden to carry, but much heavier is it to carry injuries and its related expenses. As an employee, you would also be absent from work due to the injuries, hence your need to recover while missing many paid days of work. Worry no more, as here in Cebuana Lhuillier, we offer.

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Emergencies are always unexpected. Aside from injuries and possible property damages, you would have to deal with the emotional stress of handling whatever comes your way. Your best option would be preparation: assembling first-aid kits, insuring your properties, memorizing emergency hotline numbers, among others. Yes, while your full proof plan may be solid enough to surpass any form of calamity or sudden occurrences, it is important to note that money may play an important role during and after your preparation, which is why it would also be wise to set aside an emergency fund. With that in mind, here are a couple of tips to build your own emergency fund:

The question shouldn’t be “how much you have left?”, but rather “what can you set aside as early as now?” 

Every pay day, put aside a certain amount towards your emergency savings before tending to other expenses. Once this money is safely in your savings account, you won’t be tempted to spend it. Yes, we all have bills to pay, but much bigger will the expenses be if we fail to set aside for future use. Make most of your monthly pay and prepare an account that would be beneficial to your emergency fund.

The more you do it, the more natural it becomes.

As with human nature, habit is a contributing factor to our routines. Doing something over and over again makes it second nature to us, which is why you should consider setting up your habit first. When you put aside money for one pay day, keep on doing it for the upcoming amounts, you would be surprised at how much your emergency fund had ballooned over a few months of your saving.

Consider cutting your expenses.

Not everything that we usually pay for lands on the “need” list. Your needs should outweigh your wants. An emergency fund is definitely a major need and you wouldn’t want to reach the point where you are almost penniless during emergencies just because you failed to save. Know where your priority lies and always be prepared.

When it comes to emergencies, you can never be too sure, so you must always be prepared. Property damage is a heavy burden to carry, but much heavier is it to carry injuries and its related expenses. As an employee, you would also be absent from work due to the injuries, hence your need to recover while missing many paid days of work. Worry no more, as here in Cebuana Lhuillier, we offer the EmployeeCARE, a Group Personal Accident Insurance specially designed for employees. It covers Accidental Death, Disablement & Dismemberment (ADD&D), Accidental Medical Cash Aid, Burial Benefit (Accident/Sickness), Unprovoked Murder & Assault (UMA), Motorcycling and Personal Liability. So what are you waiting for? Visit your nearest Cebuana Lhuillier branch now – we assure a fast, easy and secure transaction.

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OFWs are the modern heroes of our time. It’s a statement that may have been overused, but it definitely holds truth. It requires a lot of courage and determination to be away from your loved ones, in exchange of giving them a convenient and bountiful life. Needless to say, their sacrifices are worth it as they are able to provide their family enough financial sustenance to get through every expenses. As for their families at home, it would only be wise to stretch out the budget and make good use of the amount being sent to them every payday. After all, that is money gained from the hard work of their loved one abroad. Here are just a few ways to manage money remittances from our OFW relatives:

Plan out your budget.

This requires proper timing. Communicate with your loved ones abroad on when they would be sending the next amount, or at least the time frame of their remittances. This would be vital as you need an accurate estimate of your expenses and how long you’ll have to wait for the next budget. This would allow you to stretch out the amount and make adjustments just to fit your everyday expenses.

Comparison of product prices.

There is a reason why OFWs love to haul in “balikbayan” boxes every time they pay their loved ones a visit in the Philippines. Items such as corned beef, toothpaste, and even shoes may also be found in our local malls and groceries, however, they are offered at a lower price in other countries due to economic differences, hence, it would be wiser to just save up on the monthly remittances by avoiding any expensive purchases, then asking our OFW loved ones to avail the items from their end instead.

Prioritize needs over wants.

This is related to the second pointer. You would not need to avail expensive apparels or gadgets here in the Philippines as their local prices are sky high. Since they are much cheaper abroad, you may just request your loved ones to avail the items from their end and bring it with them when they come home for vacation. In this way, the remittances you’d be receiving would be sufficient for needs such as utility bills, school fees, etc. Such wise decision would enable you to even save up for emergencies and other future use.

With all of these in mind, you and your loved ones are hoping for a remittance service that would only provide the smoothest transactions possible, with no hassle and delay along the way. Well worry no more, as we at Cebuana Lhuillier offer our Pera Padala Service, an easy, quick, and safe way to send and receive money. With more than 2,000 branches nationwide and accredited international partners, this money transfer service is made available to clients within and outside the Philippines. All transactions are real time, which enables clients to claim the money as soon as the sender completes the sending process in the branch. So what are you waiting for? Visit your nearest Cebuana Lhuillier branch now – we assure a fast, easy and secure transaction.

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It’s your first time to get car insurance and you’re excited to receive a great deal. You think that this will definitely help you save in the long run; after all, insurances were made so that you may avoid major expenses in injuries, repairs and other property damages. However, there are things that insurance companies are not willing to tell you, one of which is that you may be paying more than what you bargained for. Car insurances have their own equivalent rates and there are factors affecting this rate, hence, you must be aware of these in order to adjust your budget, and hopefully, avoid roadblocks in your savings:

Your address

Your home address would affect your insurance premium in the long run. Of the all the factors that affect car insurance rates, location is chief among them. Insurers would take note of your neighborhood’s crime rates, population, weather patterns, and the severity of claims made annually. This is because they are assessing the risk that your car may be subjected to, and from there, they may be able to analyze the amount or the right package that would be fitting for you and for their business, with the implication that you and your insurer should have a win-win situation deal, even when at times it may seem costly than the average.

Your age

Surprisingly, this is also a major factor when it comes to insurance rates. Your age would reflect the type of premium that you may need, especially if you are young or in your early 20’s. A study from the Insurance Institute for Highway Safety (IIHS) indicates that the fatal crash rate for teen drivers is three times those of drivers over the age of 20. It may be a rough estimate, but that doesn’t stop your insurance company in determining your options. On the other, older drivers tend to be involved in more accidents. People aged around 75 to 80 may have difficulty with their eyesight, hence the statistical result. This also plays an important role in your insurance premiums, which also implies that risk a major factor in your car insurance rates.

How you usually use your vehicle

How you use your ride will also affect your premium. If you use your vehicle for commercial purposes, like for Grab or Uber, you may need to disclose this. Failure to do so could result in a denied claim if you are in an accident while on the job. If you have a long commute or drive frequently after midnight, expect your rate to be a bit higher as the time and longevity of your travel also imposes risk on your vehicle.

After reading all of the determining factors for your car insurance rates, you finally agree to get one. However, you are unsure which is which. No worries as we had got you covered. At Cebuana Lhuillier, we offer the AutoCARE Insurance, a Standard Comprehensive Car Insurance that covers Own Damage (OD), Theft, Loss and/or Damage. Excess Bodily Injury (EBI), Excess Property Damage (EPD), and Acts of God/Nature (AOG/AON). So what are you waiting for? Visit your nearest Cebuana Lhuillier branch now – we assure a fast, easy and secure transaction.

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A time deposit account may be more beneficial for you than any other type of bank account. Yes, various accounts have their own features, each with of their underlying pros and cons as well. However, if it’s your intention to save money, then this one may be your best option. Why would I even apply for one, you may ask? We have enumerated a few important factors that may describe why a time deposit account is beneficial for you:

It provides you with a higher interest rate.

Unlike a savings account, a time deposit gives you a better value for your money when it comes to interest rates. While you are patiently waiting to withdraw your money at a certain period of time, the accumulated interest will be higher than the average, thus adding more to the cash amount. It is not to say that it’ll give off a large sum by the time that you withdraw; rather it would at least provide you with a little extra, beneficial for those days that you will require more for an allotted budget or expense, much like an emergency fund.

You get to choose how long you want to invest your money.

A time deposit account also enables you to customize your investment, providing you with options ranging from 30 days to ten years. When you really want to put aside cash without the fear of impulsive shopping, thus, forcing you to withdraw anytime, then this type of account will help you value your savings more. If you opt to go for a whole month without touching any of your hard-earned cash, then at least a time deposit would help you accomplish that. Take note that emergency funds may not be suitable for this type of account, as you may need to withdraw for those immediately while this one restricts you from doing so.

You can choose to have more than one fixed deposit account.

Yes, it will enable you to save, but how does it stack up for emergency purposes. No need to worry, as you may opt to have more than one time deposit account. To accomplish saving a huge amount, you may choose to avail an account with a longer investment period, while on the other hand, a shorter investment period would enable you to withdraw, perhaps just in the nick of time when an emergency arises. Manage your money properly and strategize with your accounts.

Be a master of your savings and hard-earned money with a trusted name that offers only the best service possible. If you’re a resident of Bacoor, Cavite, Calatagan, Batangas then the Cebuana Lhuillier Rural Bank is your one-stop spot for opening your own savings account.

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