Utilizing Digital Banks for Saving

Digital banks are now a legitimate choice for the financial management of Filipinos due to the rapid digitalization that the Philippines is currently experiencing. Creating a traditional bank account can be a hassle for some since you still need to go to the bank personally, which is why more people are opting for the more convenient solution.

For those who have goals that need saving up money, utilizing digital banks is perfect due to the convenience of creating an account, its ease of access, and other features.

Here are some tips on how to utilize digital banks for saving money:

Saving for different purposes

Utilizing digital banks will make your saving goals clearer as you can designate a digital bank for a certain matter you’re saving for. These virtual platforms offer a plethora of benefits, including the ability to allocate your savings for different purposes with utmost clarity.

For example, save funds for your dream car on one digital bank, an emergency fund on another, and your phone upgrade on a whole different platform. Digital banks will let you segregate your objectives effortlessly, leading to easier saving habits.

Avoid spending your funds

Another advantage of using different digital banks extends beyond the segregation of your financial goals. They also allow you to ease up your spending habits.

When your funds are scattered across multiple platforms, it becomes less tempting to spend them impulsively compared to when they’re at a singular bank and you feel like you have all the money in the world every time you take a look at how much you got there.

This segregation acts as a buffer, compelling you to think twice before dipping into your savings for discretionary expenses. Better yet, use a different digital bank for your splurging. This will allow you to place a hard cap on how much you can spend on wants every month.

Digital banks offer higher interest rates

Digital banks offer much higher interest rates per annum as part of their effort to convert more people into using them instead of traditional banks. This is also true in the Philippines, where digital banking platforms such as GoTyme Bank, CIMB Bank, and Maya offer higher rates.

Take advantage of these promos by constantly depositing your money in the platforms, earning you more in the short term. This will keep your finances organized.

Remember to always utilize technology to your advantage, with the rise of digitalization in the country, your finances are much easier to manage than ever. Partitioning your money in various digital banks will give clarity to your financial goals, help you spend less, and offer you more lucrative returns. (GFB)