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Sunday, October 4, 2009

Why is it better to deposit in Cooperatives than commercial banks?

There are rising awareness among regular citizen to realize that it is better to deposit money in cooperatives than commercial banks. We'll there are also a number of people testified banks are better options to park money.

I believe there are really advantages and disadvantages in deposits whether it be in commercial bank or in the cooperative. Allow me to cite a few:

Deposits in Cooperatives:
  • "Tax Free". Deposits in a cooperatives are not subject to withholding tax.
  • Higher Interest Rates. Normally deposits in cooperatives have higher yields than those with the banks. Banks offer 1-2% p.a. interest rates while cooperatives rates starts at 4% and up.
  • "No Deposit Insurance" as of the time of this writing most of the cooperatives developed only an inhouse insurance system on members deposit. There were a series of studies conducted to create something like PDIC but until now there is nothing that can be evidently visible. Lately, there is what we call CODIS (Cooperative Deposit Insurance System) they were able to submit requirements at government agencies regarding their registration but no news about it since submission last Jan 09 if I am not mistaken.
Deposits in Banks
  • Subject to 20% final withholding tax. a depositor once told to earn a certain rate on their savings deposit must always remember that the actual amount credited on their account is only 18% of it.
  • Interest rate at 1 - 2% p.a. only.
  • Deposits insured up to P500,000 by the Philippine Deposit Insurance Commission (PDIC)
If you ask me about my choice, well my biased is with cooperatives simply because by depositing in cooperatives we are infact helping ourselves. Bank owners are large capitalist who are enrich if we choose to deposit with them. I'm not saying they are bad rather I am campaigning that cooperatives gives us many add on aside from a higher interest on deposits. Some cooperatives even offer hospitalization, death benefits, savings protections, as well as insurance on loans. Banks normally don't give us these advantages and they keep their gains in contrast to our Patronage Refunds which is given every year.

Does that help? If you still have doubts about coops, email me.

11 comments:

Anonymous said...

hi,po , gs2 ko sanang magtanong tungkol sa pag deposito ng pera sa coop. e2 po ung tanong, kung sakaling magdeposito ako ng pera mga 100,000 pesos magkano po kaya ang tubo nito sa isangbuwan? kc sv po d2 4% to 5% ang tubo, tama po b? at saka po ano pong mga requirements sa pag apply..........tnx po

cleo said...

Good afternoon. Please give me an idea on the correct formula in computing dividends in a credit cooperative

Toti said...

Please text me your email address at 09177160347 and i will email you the correct formula or sample computation for dividends and patronage refund. thanks

Anonymous said...

Minsan ay may nakakuwentuhan po akong taga-LANDBANK. Sabi niya, mababa nga ang interes sa kanila pero hindi ka naman kakaba-kaba. Totoo po na mas risky ang pagdedeposito sa coop. Pero kung marunong ang mga taga Audit & Inventory Committee, sa coop pa rin ako.

Anonymous said...

isang malaking cooperative ang AIMCOOP,nag offer sila ng Preferred Shares Deposit,prang time deposit for five years,12%/annum ang interest,bakit kaya ganon kalaki ang offer nila na interest?

Anonymous said...

isang malaking cooperative ang AIMCOOP,nag offer sila ng Preferred Shares Deposit,prang time deposit for five years,12%/annum ang interest,bakit kaya ganon kalaki ang offer nila na interest?

Anonymous said...

isang malaking cooperative ang AIMCOOP,nag offer sila ng Preferred Shares Deposit,prang time deposit for five years,12%/annum ang interest,bakit kaya ganon kalaki ang offer nila na interest?

Anonymous said...

isang malaking cooperative ang AIMCOOP,nag offer sila ng Preferred Shares Deposit,prang time deposit for five years,12%/annum ang interest,bakit kaya ganon kalaki ang offer nila na interest?

Anonymous said...

just present 1 valid ID'S .Visit AIMCOOP for more info .

Toti P said...

hi I cannot speak for AIM Coop and why they offer a big interest on Preferred Shares as mentioned by anonymous above.

every lending cooperative or financial institution has a means of balancing its interest from deposits and interest from its loans. The interest from loans are the ones paying for the interest in deposits. In addition to that an institution has admin expenses to cover and the possible losses on loans, these are very important things to consider.

Anonymous said...

good morning. for any clarifications, you may visit to any of the branches nationwide. And kindly visit the website.

http://aimcoop.com.ph/services/

THANKS