From bonus to savings: 7 habits to make the most of your year-end reward

The “ber” months in the Philippines mark the longest Christmas celebration in the world. Jose Mari Chan memes start filling up social media feeds and “Christmas in Our Hearts” is back on rotation in the airwaves. But as the holidays inch closer and excitement builds, another familiar tune starts to take over. Officemates often happily sing it in unison: “Ibigay nyo na ang aming Christmas bonus!”

It is easy to get caught up in all the celebrations, but before the popular chorus fades, why not make your own list for how you’ll want to spend your once-a-year bonus and turn it into a gift that keeps on giving long after the season ends? If you plan to set aside a portion of your bonus to fund future goals or be ready for emergencies, here are 7 wise money-saving habits that are worth practicing:

1.  Know your bank. In the same way you read about product descriptions and reviews before adding an item to the cart, take the time to learn about your bank’s owners and financial condition so your bonus when deposited in a bank lands in a place that truly earns your trust.
2. Familiarize yourself with bank products. You’ll be surprised at how many products banks offer — each designed to meet different needs or appeal to specific demographics. Check which deposit products will match your short-term or long-term goals. More importantly, do not confuse deposits with investments. Bank deposits are insured by the Philippine Deposit Insurance Corporation (PDIC), the state deposit insurer mandated to provide deposit insurance to protect depositors and promote financial stability.
3. Watch out for services and fees. Put on your Santa hat and check your list twice. It’s always a good measure to compare bank interest rates, fees and charges, and terms before choosing where to deposit your bonus and savings.
4.  Keep your bank records safe and updated. Secure your passbooks, ATM cards, and digital confirmations, and regularly update your contact details and online account passwords to protect sensitive information.
5. Transact wisely. Always transact with authorized personnel and on official digital channels only. Whether in-branch or online, fraud prevention starts with vigilance.
6. Be informed about deposit insurance. It is also important to have a clear understanding of the deposit insurance provided by the PDIC. Deposit insurance protects your hard-earned deposits in banks up to the maximum deposit insurance coverage (MDIC) of P1 million per depositor, per bank. This knowledge empowers you to plan your savings wisely and avoid risks.
7. Be cautious of tempting offers. Channel a Grinch-like caution with your bonus because if something seems too good to be true, it probably is. Yes, high interest rates can be attractive, but they often come with higher risks. It’s better to play it safe than to jump on sketchy offers.

“All I want for Christmas is…” a savings account? The Christmas bonus that you will soon receive can be more than just extra spending power, it’s an opportunity to gift yourself with financial peace of mind. Through these wise money-saving habits and mindful spending, you can be more financially prepared next year — and even the years after.