BCH vs. Bank

May 12, 2021

As my topic goes… BCH vs. Bank… for me, this means differentiating earnings from BCH against that of the bank.

Again, this is just my opinion and my little knowledge based on my experience.

Let us first identify what are the services offered by the bank and how are we going to earn from such service or are we earning from such service.

The services that I will mention in this article are only those that I myself has availed of.

PAYROLL FACILITIES

Way before ATM has been discovered and implemented, releasing of salaries to the employees was made manually. I have experienced this before in one of the companies that I have worked with. It is my duty and responsibility to prepare the payroll, withdraw the amount needed and place each wages inside a money envelope. This process is tedious and dangerous. Tedious, as I have to get the exact number of bills and cents. Dangerous, as I have to go to the bank and withdraw the whole amount and who knows who might be lurking around the bank facility. Every time I get to withdraw for the salaries, I always have a chaperone with me that will function as my bodyguard.

Soon, ATM came and releasing of wages has become easy and safe.

Most of the big companies or almost all companies now used the payroll facility to release the wages for their employees. The salaries are deposited to a savings account of the employee by the employer. It is up to us if we are going to withdraw that amount or leave it at the bank for savings.

There is no income by the employee that is derived from this facility, unless you don’t withdraw your wages. There is an advantage of the payroll facility though, you don’t have to maintain a monthly average daily balance. Meaning you can withdraw your funds up to the last Php 100.00.

 DEPOSIT FACILITIES

The most common service that the banks provided to its clients is its deposit facility.

It may be a savings account or a current account.

This facility requires you to have a monthly average daily balance (MADB). If you cannot maintain the MADB, the bank will deduct bank charges from your account. Below is a sample of a bank’s required MADB.

 The savings account may earn an interest monthly or quarterly. The interest rate is around 1.25% - 1.3% annually.

While the current account may earn an interest of 0.25% annually.

Always remember that the bank charges are high.

For example, you have Php 10,000 in your savings account and this earns 1.25% annually, therefore you will earn Php 10.42 in monthly interest.

If your savings account is only Php 9,000.00, then you will not earn interest and will have a deduction for the bank charges, usually ranging from Php 100.00 - 150.00

INVESTMENT FACILITY

TIME DEPOSIT was an old service under investment facility. In this, you get to put your fund in a time deposit, meaning there is a range of number of days wherein you cannot withdraw your funds, and let it earn interest for that duration.

Below is an example of interest range for time deposit.

If you pre-terminate your time deposit, meaning you will withdraw the funds before the end of the time range, you have to pay bank charges. The bank charges will be higher than the interest that you earn from the time deposit. That is why if you use the facility you have to make sure that the fund you are placing in time deposit are your excess funds, something that you are not going to use in the near future.

Some banks now offer SECURITIES.  This facility allows you to invest in stocks and trade.

I tried investing last December 2020 and found myself stuck as the stocks I bought are all dipping.  

The above mentioned bank facilities are all the services that I have used. So I am not going to mention the other services rendered by banks.

I don’t have that much funds in the bank so the interest I earned is not that much too. Below is an example of the interest I earned. I use this bank for my crochet business and I only deposit once or twice a year. So all you can see here are the monthly interest I earned.

That is not significant enough considering the number of months that the fund was in the bank. The bank charges are higher than the interest earned should you go below the monthly ADB.

Where is the justice in that?

Now here comes BCH.

What have I learned about BCH? Nothing. I did not know anything about BCH until I joined read.cash and noise.cash. As I mentioned in my previous articles, I only joined because of MJ’s prodding. I also joined because of writing.

And what have I earned here? In the eight months of publishing and being noisy, I eared a 5 digit amount. How can that be compared to the interest I earned in the bank?

Plus I have fun with BCH thru buying and selling. The thrill is just there. After my morning and evening prayers, the next thing I do is to check on the rate of BCH. I also check from time to time during working hours.

I made an excel file for the BCH I sold and I am hoping for a dip so that I can buy some. Below is the excel file I made. This is just from April 30. I didn’t dig up the old files. The buy column is still empty as I am waiting for a significant dip so that I will have a gain from what I sold.

But BCH is not cooperating with me here. It is not accommodating my wish. So for now, the buy column will remain empty. But I am sure that the sell column will continue to fill up.

I wish the stocks that I invested in the bank will go green, even just for a very small gain. Once that goes green, I am going to sell and withdraw my funds from the bank to buy more BCH once it dips.

What about you? What is your BCH story?

Thanks for dropping by.

🧡🧡🧡

 Lead image by unsplash.