Introduction
Most, if not all, of us want to have a passive income. Just imagine earning money without actually doing any work. Isn’t that a dream come true? With a savings account, you can earn passively through interest. Just ensure that your account balance is within the minimum amount needed to earn interest, and the bank will pay you for keeping your money in your deposit account.
With Micro Savings, even low-income families can have the opportunity to earn passively through interest. Learn more about Cebuana Lhuillier’s Micro Savings accounts and their interest rates by reading this article.
What Is a Micro Savings Account?
A Micro Savings account is a basic account type offered by financial institutions. Like a regular savings account, it lets you deposit and withdraw your money, but the difference is that Micro Savings products are catered toward lower-income individuals. Often, these people open a Micro Savings account to encourage themselves to save and to protect their hard-earned assets.
The best thing about a Micro Savings account is it makes your assets liquid. You will have easier access to your funds whenever you need it, and it also earns modest interest that gives you extra cash over time.
Keep in mind that since cash is more liquid in a Micro Savings account, it also offers a lower interest rate compared to more restrictive investments and bank instruments. You may find a Micro Savings account with a competitive interest rate, though, if you visit us at Cebuana Lhuillier.
Cebuana Lhuillier’s Micro Savings account offers a competitive interest rate, which allows every Filipino account holder to have the opportunity to save and earn passively. This Micro Savings account also doesn’t have a required maintaining balance or a large minimum deposit, making it suitable for low-income earners.
Bank Interests, Explained
Interests and interest rates can be complex topics, but it’s important to learn about them because they concern finances (or, more particularly, your own money). Below is a brief explanation of what they are and their perceived risks to your Micro Savings account:
What Are They?
The interest rate can mean two different things. First, it can be defined as the percentage of your assets that the bank pays you to keep your money on deposit. By depositing your money in your savings account, you are basically lending your assets to the bank. The bank then uses your assets to invest in loans and other financial products.
The interest rate can also mean the amount that is charged over and above the principal amount lent in a loan. Whenever someone borrows money from the bank, this is the percentage that they have to pay back along with the money they borrowed. Now, what does this have to do with your Micro Savings account?
Since your assets contributed to the loan, the bank will pay you the interest rate, and you can earn money passively by maintaining the minimum balance required to earn interest.
Risks in Micro Savings Accounts
There are no perceived risks to your assets when banks borrow your money to fund loans. This means that you can earn interest without worrying. The amount you saved in your account will still return to you, and it will not suffer any effects. The only thing that could change over time is the amount you can earn through interest.
Interest rates are responsive to the inflation rate. Most of the time, high interest rates are caused by rising inflation, while low interest rates are a response to low inflation. A bank can adjust the interest rate to stimulate the economy.
Why Banks Pay Interest to Account Holders
Banks pay account holders because they use the money you deposit in your savings account to fund the credit loans of other users. These users are charged with an interest rate for borrowing money. Once the interest is paid by the borrower, the bank will give you your share.
Another reason why banks pay interest to account holders is to encourage people to keep saving their money as well as to attract new savers.
Open a Micro Savings Account With a Competitive Interest Rate!
Learn how to passively earn some money by opening a Cebuana Lhuillier Micro Savings account with competitive interest rates. It was created for low-income earners who are looking for a bank that could accommodate their needs. While most banks come with the risk of high bank charges and extensive limitations, Cebuana Lhuillier Micro Savings barely has any limit for its account holders.
There is no minimum maintaining balance, so there is no risk of getting charged by the bank. Moreover, you can deposit any amount between ₱50 to ₱50,000. This makes it easier for you to save since you can be confident in depositing even a small amount.
The exciting part is that you can earn regular interest as long as you keep your account balance within or above ₱500. To make sure that your fund is within the minimum required rate to earn interest, be sure to regularly check your account balance.
Now, you might be wondering how to check Cebuana Lhuillier’s Micro Savings balance online. It’s easy. You can do so using the eCebuana app. Open the app and type in your login details to gain access to your Cebuana Lhuillier Micro Savings account. The screen will immediately display your balance on the dashboard.
Conclusion
Interest is one of the most amazing features of a savings account. It allows you to earn passively over time without worrying about risks to your assets. With Cebuana Lhuillier, even low-income earners can open their Micro Savings accounts and experience the joy of earning interest.
Open your Cebuana Lhuillier Micro Savings account today at any of our branches nationwide. Get easier banking access through our services!
Cebuana Lhuillier Micro Savings is a product of Cebuana Lhuillier Rural Bank. Deposits are insured by PDIC up to P500,000 per depositor. Regulated by the Bangko Sentral ng Pilipinas with contact number (02) 8708-7087 and email address [email protected]. A Proud Member of BancNet and UnionPay
