6 Things to Look for in a Time Deposit Product for Growing Your Money

Both traditional and digital banks offer a range of financial products that can help grow your money. For instance, time deposits have a higher interest rate compared to regular savings accounts, making them an excellent place to park your money and boost your savings. Opening a time deposit account, however, involves you depositing funds for a fixed period, usually between a few months to several years. You’re also advised not to touch it until the fixed term is over to receive the interest in full. 

Due to the terms and conditions of a time deposit account, it’s ideal you open an account from a financial institution that offers the best features to ensure the safety of your investment. Here are some things you need to consider when looking for a time deposit product for growing your money:

The Bank’s Reputation

When considering a time deposit product to grow your money, it’s essential to evaluate the reputation of the bank offering the deposit. This serves as a crucial indicator of the institution’s reliability, stability, and trustworthiness. Institutions that have built a strong reputation over time are also more likely to adhere to regulatory standards, ensuring that your investment is protected. Finally, they prioritize customer service, offering personalized assistance and guidance to help you make informed financial decisions. Simply put, opting for a time deposit from a well-established and reputable bank provides peace of mind.

Additionally, a financial institution with a solid reputation employs robust security measures and offers insurance coverage to protect your money from various threats. For example, a reputable digital bank regulated by the Bangko Sentral ng Pilipinas and insured by the Philippine Deposit Insurance Corporation is better able to protect its users and their money. Therefore, it’s a safe bank digital savvy consumers can open a time deposit account for financial gain.

Interest Rates

The interest rate determines the amount of return you’ll earn on your time deposit over the specified term. Obviously, higher interest rates can impact the growth of your funds, allowing you to maximize your returns and achieve your financial goals more efficiently. However, it’s essential to compare interest rates across different institutions and terms to find the most competitive option. Through a careful evaluation of the interest rates offered by various institutions, you can make an informed decision and optimize the growth potential of your investment.

For instance, Maya—a fintech company in the Philippines—has a time deposit product called Time Deposit Plus. It offers a guaranteed 3.5% p.a. at the start of the term, which is typically higher than what most traditional banks offer. This interest rate can be further boosted when you reach your target amount and date, thus maximizing your money’s income potential. 

Term Length

Another important consideration when selecting a time deposit product is the term length or maturity period. It refers to the duration for which your funds will be locked into the deposit before you can access them without incurring penalties. Different financial institutions offer a variety of term lengths, ranging from a few months to one year or more. Usually, time deposits with shorter terms offer lower interest rates, However, they provide greater flexibility by allowing you to access your funds sooner if needed. On the other hand, time deposits with longer terms often offer higher interest rates but require an extended commitment period. So, when choosing the term length for your time deposit, consider your financial goals, liquidity needs, and risk tolerance. Opening an account with the right term length ensures that your investment aligns with your objectives and allows you to maximize the benefits of compound interest.

Minimum Deposit Requirements

Before opening a time deposit account, make sure to consider the minimum deposit requirements set by the bank. Minimum deposit requirements often vary. Some institutions may offer lower minimum deposits for certain types of accounts or promotional offers, making it easier for those with limited funds to take advantage of higher interests. Others may have higher minimum deposit requirements but come with additional benefits, such as preferential interest rates or waived fees. Understanding these requirements is crucial in helping you plan your finances as you lock in the initial funds in a time deposit account. 

Do note that there are also time deposit products that don’t have minimum balance requirements, like Maya’s Time Deposit Plus. This makes it more accessible to those who don’t have a large amount to deposit immediately. Moreover, Time Deposit Plus also requires a low total goal amount of at least Php 5,000 only, which means you can start earning boosted interest rates.

Early Withdrawal Penalties

Early withdrawal penalties are fees charged for accessing your funds before the specified maturity date of the time deposit. These penalties can vary and may include a percentage of the withdrawn amount or a loss of accrued interest. In ideal situations, you’ll keep your money in the time deposit account until the term is completed. However, there may also be situations in which you have to withdraw your money early. As such, you must carefully review the terms and conditions regarding early withdrawals to understand the potential consequences. While some institutions may offer more lenient penalty structures, others may impose substantial fees that can significantly impact your overall returns. 

Renewal Options

Renewal options dictate what happens to your deposit once it reaches maturity. Some institutions may automatically renew the deposit for another term unless instructed otherwise, while others may require manual renewal or offer the choice between renewal and withdrawal. Understanding your options allows you to plan ahead and make decisions that align with your financial goals and preferences. Automatic renewal can be convenient, ensuring that your funds continue to grow without interruption. However, it’s essential to review the terms and conditions associated with renewal, including any changes in interest rates or fees. Explore renewal options beforehand so you can avoid unexpected outcomes and maintain control over your investment strategy.

Selecting the right time deposit product is a crucial step in growing your money and achieving your financial goals. By considering these factors, you can make informed decisions that align with your needs and preferences, making it easier to choose a time deposit product that’s right for you.

W Express & KVAC – Simplifying Korean Visa Applications!

W Express & KVAC – Simplifying Korean Visa Applications!

Backed by W Express’ nationwide network of over 100 branches, experience a simplified Korean Tourist Visa (C 3-9) processing, from application to delivery.

Guess what, everyone! W Express has partnered exclusively with the Korean Visa Application Center (KVAC), making them the go-to courier service for Korean tourist visa application processing and delivery in the Philippines.

Dawn Feliciano, Chairman/President of W Express, shared the excitement: “This partnership is a fantastic new chapter for W Express. With over 100 branches nationwide, we’re excited to help more Filipinos achieve their dreams of visiting Korea. By making Korea more accessible, we’re turning travel aspirations into reality and allowing more people to experience its rich culture and beauty.”

Ahn Kyu Suk, KVAC Managing Director, added, “We’re thrilled to partner with W Express to enhance the visa application experience for Filipino travelers. This collaboration perfectly aligns with our mission to simplify the process, allowing applicants to focus on planning their trips rather than the logistics of visa application. We couldn’t have found a better partner for this endeavor.”

Earlier this year, the Embassy of the Republic of Korea introduced new initiatives to streamline the visa application process. Thanks to this collaboration, Filipino applicants can now submit their Tourist Visa (C 3-9) applications at any W Express branch, eliminating the need for in-person submissions. Non-Filipino applicants and those applying for different visa types will still need to submit their applications in person.

The application and delivery fee is P1,900 per person, payable on-site, with the delivery fee subject to change depending on location. The entire process, from submission to W Express to the delivery of your passport, typically takes 14-16 working days.

With W Express, getting a Korean Tourist Visa has never been easier. Let the dedicated team at W Express help simplify your travel preparations – visit them today!

For more information, visit www.wwwexpress.com.ph or contact them at (02) 8879-8888. Don’t forget to follow their official Facebook and Instagram pages for the latest updates on promotions and offerings.

Online Sellers Taxes: A Guide and Important Things to Know

So I’ve been reading through a lot of online seller groups and there were a lot of questions on online sellers taxes.

My friend Welly and I are starting this online selling business and we’re just waiting for our samples before we start production. But feel free to pre-order.

So going back to these online seller groups, I’ve noticed that there are a lot of questions on online seller taxes. Not surprised, actually. Discussing about online sellers taxes is quite a complicated topic, and you actually get a lot of confusing answers.s

I’ve seen a lot of answers from random people in the group, and I know they mean well, but some are still quite confusing. So let me answer some of these questions that I see in these groups for you. For full disclosure, I am not a CPA. I am a business owner like you, as well, but since 2016, my company, Taxumo, has been in the forefront of helping MSMEs and self employed professionals with understanding, filing and paying their taxes and being compliant.

So in the close to 8 years that we’ve been in business, we have understood and confirmed a lot of things with the BIR. Taxumo, as an accredited tax software provider, has also helped cascade information about the new rules and regulations shared by the Bureau of Internal Revenue.

Okay, so now that you know who we are and what we do, let’s deep dive into the common questions that I see from online sellers. Get ready for a long post since we’ll try to cover a lot of stuff from online sellers registration process to online sellers taxes.

How do I register? Do I register as a sole prop? Do I need a Municipal Hall or Mayor’s permit to be able to do business?

Paano ba ako magreregister? Mag-reregister ba ako as a Sole Prop? Kailangan ba ng Mayor’s Permit?

For online sellers, BIR requires them to register as a sole proprietorship business. To register as a sole proprietorship, you’ll have to go through 3 government offices: DTI, LGU and the BIR. If you need a guide on the requirements needed for these, check this guide: https://www.taxumo.com/business-registration/sole-proprietors/

I have registered with the BIR and I got my BIR form 2303 or Certificate of Registration. What are the types of taxes that I should see in my registration as an online seller?

Nakapag-register na ako sa BIR at nakuha ko na ang BIR Form 2303 o Certificate of Registration. Ano ba ang buwis na dapat kong i-file at bayaran bilang isang online seller?

As a sole proprietor, (usually) you’d see these type of taxes:

  • Income tax return (filed Quarterly): 1701Q and 1701 or 1701A (for those who opted for 8% tax rate – earning below Php 3 Million Gross Revenue per year)
  • Sales Taxes (filed Quarterly): Percentage (for Non-VAT entities; earning below Php 3 Million Gross Revenue per year) or VAT (earning more than Php 3 Million Gross Revenue per year)
  • [Some entities with employees] Withholding Taxes on Compensation: 1601c (monthly) and 1604c

Some IMPORTANT things to note on filing online sellers taxes:

  • Tax rate types are 8% or Graduated Income Tax Rate. You can change your tax rate ONLY at the start of every year, before you file your first form. You can indicate it on your first Percentage tax form / Income tax form for the first quater.
  • For the 8% tax rate, you can only choose this if you are an individual tax payer (i.e. sole proprietor, professionals) and Non-VAT (earning below Php 3 Million Gross earnings per year)
  • Now that you’ll receive a 2307 form for the taxes withheld from your pay, these forms are very important. The total amount withheld will be tax credits that will be deducted from the total tax that you need to pay for your income tax return. These forms are “attachments” to your income tax return form.
  • These attachments also needs to be submitted to the BIR. If you’re using eBIR forms, you’ll need to use the Alpahlist validation tool of BIR to submit the attachments. I personally use Taxumo because Taxumo also submits the attachments for me. What I need to do for income tax filings is to submit all of the forms, confirmations, etc. via the EAFS tool. It makes submitting easier.
  • By the way, regardless of whatever tax rate you choose for Income tax return, you will need to write on your Books of accounts. BTW, I personally use Taxumo for filing, payment and even updating Books of Accounts. No need to know how to compute or have an accounting background. Join this FREE tutorial session with Taxumo: https://calendly.com/consultnow/onboarding
  • For mixed income earners (those with businesses who are still employed), you will need to file the taxes indicated in your COR then for your Annual income tax (use 1701 form), you will need to include the details in your 2316 (given by your employer).

So these are some of the things that I can think of, but if you have other questions, feel free to chat with Taxumo or send a message in their Facebook page. They are super duper helpful! They also have webinars specifically for online sellers.

I am part of the “cooperative / coop”, should I still register?

Yes, based on the BIR rules, all of us online sellers should register. You are required to register your business as the 1% withholding tax in the new BIR law for online seller taxes will be reported to be for your business.

To know more about the 1% withholding tax for online sellers, read this: withholding tax for online sellers

There are a lot of deductions in seller platforms like discounts for customers, etc. Which number should I report and how do I write it down in my sales invoice?

Ang daming kaltas sa seller platforms tulad ng diskwento sa customers, etc. Alin sa mga ito and dapat kong ireport at ilagay sa sales invoice?

Here is a sample breakdown that you can refer to. FYI, this is for those who want to use Taxumo to file their taxes.

Here are the steps to set up your account in Taxumo.

Step one: The first thing that you need to do to pay your online sellers taxes is to set up your profile in the settings page of Taxumo.

Step two: You’ll need toadd some “Categories” in Taxumo. As seen in the sample above, there are 4 DIRECT COSTS that are indicated: Commission, Payment Fee, Shipping Fee and Raw Materials. The other costs, not directly related to your business’ core activity (in this case… it’s selling goods), will be under deductible expenses.

This is where you can set up the categories in Taxumo.

If you need help in setting up categories and have other questions, you can also book a consultation session with Taxumo CPA partners in this page: Taxumo Consult.

So for the 4 direct costs for online sellers taxes that I’ve mentioned, 2 of these needs to be set up. So copy and add these 2. See screenshots below.

So the 4 direct costs will be categorized as such:

Commission: (to be added as a category as mentioned above)

  • Group classification: Services – local
  • Category Name: Commissions
  • Type: Direct
  • VAT Classification: Domestic Purchase of Services

Payment fee: (to be added as a category as mentioned above)

  • Group classification: Services – local
  • Category Name: Payment fee
  • Type: Direct
  • VAT Classification: Domestic Purchase of Services

Shipping fee: (existing category in Taxumo)

  • Group classification: Services – local or Services – foreign
  • Category Name: Services – local or Services – foreign
  • Type: Direct
  • VAT Classification: Domestic Purchase of Services or Services Rendered By Non-Residents

Raw mat cost: (existing category in Taxumo)

  • Group classification: Merchandise/Raw Materials – local or Merchandise/Raw Materials – imported
  • Category Name: Merchandise/Raw Materials – local or Merchandise/Raw Materials – imported
  • Type: Direct
  • VAT Classification: Domestic Purchase of Goods Other Than Capital Goods or Importation of Goods Other Than Capital Goods

Step 3: Encode all of your revenue and expenses in the Cashflow tab of Taxumo.

Remember that one invoice equals one entry on Taxumo. For the new rules on BIR Invoices, you can read this: Navigating BIR Rules on Receipts: Transitioning to Invoices Encode diligently since every time you encode your revenue and expenses, you will see an automated approximation of the taxes that you need to pay in the “TAX DUES” tab.

Step 4: Encode also all 2307 forms received in the “WITHHELD TAX” tab. It’s very easy to fill out. Just copy what is shown in your 2307 form.

Step 5: If you have subscribed to Taxumo, you can FILE AWAY. Go to the tax dues tab and file the forms that you need to file.

I think this post is becoming a bit too long already (LOL!), but feel free to comment below if you have questions on online seller taxes or better yet, go directly to Taxumo’s FB page and send them your questions.

Hope this helps! 😀

P.S. Some other articles that will help you: https://mommyginger.com/end-of-year-business-checklist-for-sole-proprietorships.html

The Secret Ingredient to Cool Summer Desserts: Discover Mr. Hat Gulaman

Summer is a time for celebration, relaxation, and lots of fun under the sun. As the temperatures rise and the heat intensifies, the search for the perfect cools summer desserts becomes essential.

What better way to enhance these moments than with cool, colorful summer desserts that everyone can enjoy? Whether you’re craving Halo-Halo, Sago’t Gulaman, or fruit coolers, one ingredient stands out for its versatility—Mr. Hat Gulaman!

Mr. Hat Gulaman makes it easy to prepare vibrant desserts that are not only delicious but also visually appealing. From family picnics to beach parties, the array of flavors like orange, lychee, and strawberry ensures that there is a Mr. Hat Gulaman to match every occasion.

What Makes Mr. Hat Gulaman Stand Out?

Produced by Philippine-based food and beverage company Seanluc, Inc., Mr. Hat Gulaman is a premium product renowned for its quality and versatility. Its jelly powder, derived from natural seaweed extract, includes a blend of sugar, flavorings, and colorings. 

With an extensive range featuring seven flavored and six unflavored options, Mr. Hat Gulaman invites you to explore a world of culinary creativity this summer. From the tropical zest of mango and buko pandan to the rich undertones of coffee, Mr. Hat Gulaman is the key to unlocking endless dessert possibilities. Economical and easy to use, it integrates smoothly into both time-honored recipes and bold, new creations.

Unlock the full potential of your summer desserts by trying out this easy to make and refreshing recipe using Mr. Hat Gulaman:

MR. HAT GULAMAN SUMMER MANGO GULAMAN

This tropical delight layers mango-infused gulaman with a creamy mango and white sugar mixture, creating a visually appealing and deliciously fruity dessert. Served in elegant glasses, it’s an ideal treat for any summer gathering.

Ingredients

  • 1 ripe mango
  • 6 tbsp white sugar for each sachet of Mr. Hat Gulaman
  • 5 cups water
  • 1 cup mango juice
  • 1 sachet Mr. Hat Gulaman Unflavored Orange
  • 1 sachet Mr. Hat Gulaman Unflavored White

Procedure

1. Dissolve Mr. Hat Gulaman Unflavored Orange in 2 cups of water. Add 1 cup of mango juice then add 6 tbsp white sugar. Stir very well and put on the fire then wait to boil.

2. Transfer to the prepared glass (wine glass, halo halo glass, or small bottle) then let it cool.

3. Dissolve 1 sachet of Mr. Hat Gulaman Unflavored White in 3 cups of water then add 6 tbsp of white sugar. Stir very well and put on the fire then wait to boil. Once it boils, add the mixture on top of the yellow or orange gulaman then let it cool.

4. Add sliced mangoes on top and a small drop of honey (optional)

Expert Tips for Perfect Gulaman Every Time

To ensure the best results when using Mr. Hat Gulaman, consider these tips from culinary experts:

  • Always follow the package instructions for water ratios to ensure your gulaman sets perfectly.
  • For a firmer jelly, slightly increase the amount of gulaman powder.
  • Dissolve the powder completely in boiling water before adding any cold ingredients to avoid lumps.

Craving for even more Mr. Hat Gulaman refreshing summer coolers? Be sure to check out Philstar.com’s feature here for even more easy to do jelly recipes!

With Mr. Hat Gulaman, you have the secret ingredient to making any dessert stand out. Easy to prepare, delightful to taste, and fun to share, it brings a touch of sweetness to every occasion.

Dive into the world of delicious, creative, and colorful desserts by following Mr. Hat Gulaman on Tiktok (@mrhatgulaman) and on Facebook (@mrhatgulaman). Remember, para pampalamig ng ulo at katawan, #NasaHatKoYan!

Moving On Up: How to Plan Your Home Upgrade

In the journey of life, there comes a time when we outgrow our current living space, whether it’s due to an expanding family, a desire for more comfort, or simply a change in lifestyle. When this moment arrives, it’s time to consider upgrading your home. Nonetheless, initiating such a project demands meticulous planning and thorough consideration. From financial planning to design selections, numerous factors need careful attention to guarantee a seamless transition to your envisioned home. Let’s delve into the fundamental steps for effectively planning your home upgrade.

Assess Your Needs and Goals

Before diving into the world of home upgrades, take some time to assess your needs and goals. Consider factors such as the size of your family, your lifestyle preferences, and any specific requirements you have for your new home. Are you looking for more space, better functionality, or enhanced aesthetics? By understanding your priorities, you can tailor your home upgrade project to meet your unique requirements.

Set a Realistic Budget

One of the most critical aspects of planning a home upgrade is setting a realistic budget. Determine how much you can afford to spend on the project and allocate funds accordingly. Remember to factor in not only the cost of renovations but also any additional expenses such as permits, professional fees, and unforeseen contingencies. It’s essential to be prepared for unexpected costs that may arise during the course of the project.

Research Design Ideas

Once you’ve established a firm grasp of your requirements and financial parameters, embark on exploring design inspirations for your home upgrade. Delve into a variety of sources such as magazines, online platforms, and social media channels to gather ideas that ignite your imagination. Pay close attention to aspects like room layout, color palettes, and architectural themes that align with your personal preferences. Utilize tools like vision boards or Pinterest to compile your ideas visually, facilitating clearer communication with your designer or contractor and ensuring your vision is effectively conveyed.

Hire Professionals

Unless you’re a seasoned DIY enthusiast with ample experience in home renovations, it’s advisable to hire professionals for your upgrade project. Look for reputable architects, interior designers, and contractors who have a proven track record of delivering quality work within budget and schedule. Conduct interviews, check references, and request portfolios to ensure you’re entrusting your project to capable hands. Consider upgrading to Frontier fiber internet to enhance your home’s connectivity and make the most of your renovated space.

Obtain Necessary Permits

Prior to starting any construction, it is imperative to obtain the required permits and approvals from local authorities. Neglecting this crucial step can lead to penalties, project delays, and potential legal issues in the future. Your contractor or architect should possess a thorough understanding of the permitting procedure and be able to assist you in navigating through it. They can offer guidance to ensure adherence to building codes and regulations, safeguarding the smooth progress of your project.

Plan for Disruption

Home upgrades, especially major renovations, can be disruptive to your daily life. Prepare yourself and your family for temporary inconveniences such as noise, dust, and limited access to certain areas of the house. Consider alternative living arrangements if the renovation work will render your home uninhabitable for an extended period. Clear communication with your contractor regarding project timelines and expectations can help minimize disruptions and ensure a smoother transition.

Stay Flexible

Even with careful planning, home upgrade projects may encounter unforeseen challenges. Flexibility is key; remain adaptable and ready to pivot as needed. Keep communication lines open with your contractor, and take a proactive approach to resolving any issues that arise during the project. Keep in mind that the final outcome will make the effort and inconvenience worthwhile in the long term.

Conclusion

In conclusion, planning a home upgrade requires careful consideration of your needs, goals, and budget. By following these essential steps and staying organized throughout the process, you can turn your vision of a dream home into a reality. From assessing your needs to hiring professionals and obtaining necessary permits, each stage of the planning process plays a crucial role in ensuring a successful home upgrade. So, roll up your sleeves, dive into the exciting world of home renovations, and get ready to take your living space to new heights.