There is no “best” investment for everyone. Two questions decide most of it: when will you need the money, and how much of a fall in its value could you live with. A sensible order to think in is: an emergency fund first, then government savings programmes and securities, then market products such as funds and shares.
| Option | Who runs or regulates it | Can its value fall? | How fast you can get the money | Tax note |
|---|---|---|---|---|
| Savings account | Banks, under the BSP | Not in pesos. PDIC insures up to PHP 1,000,000 per depositor, per bank; amounts above that are not insured | Same day | 20% final tax on interest |
| Time deposit | Banks, under the BSP | Not in pesos. PDIC insures it the same way, up to the same limit | At the end of the term; early only with a penalty | 20% final tax on interest |
| Pag-IBIG MP2 | Pag-IBIG Fund | The dividend rate is set each year and changes | After 5 years; earlier only on set grounds | Dividends tax-free |
| Retail Treasury Bonds | Bureau of the Treasury | Its market price can move if you sell before maturity | At maturity (RTB-32: 2.5 years) | 20% final tax on interest |
| Treasury bills | Bureau of the Treasury | Its market price can move if you sell before maturity | 91, 182 or 364 days | 20% final tax |
| PERA | Accredited administrators, under BSP, SEC and IC rules | Depends on the products inside it | From age 55, after 5 years | 5% tax credit; tax-free inside |
| UITFs | Banks’ trust departments, under the BSP | Yes | Depends on the fund’s terms | Varies by product |
| Mutual funds | Investment companies, under the SEC | Yes | Depends on the fund’s terms | Varies by product |
| Stocks and REITs | Listed companies, under the SEC | Yes | A few days after you sell | Varies by product |
Scroll the table sideways for more
Each row is explained below, with its own guide.
Before you invest
- An emergency fund comes first. Keep a few months of costs where you can reach them in days, such as a savings account. Our emergency fund calculator works out how much.
- Pay down costly debts, such as credit cards, before you invest. Their interest is usually higher than what savings earn.
- Think about basic cover. If your family depends on your income, life and health cover can pay for a hospital bill or replace income, so your savings are not used for it.
Two ideas help you choose: risk tolerance, how much of a fall you can live with, and liquidity, how fast you can turn something into cash. Spreading money across different kinds of options is diversification.
Government savings programmes and securities
- Pag-IBIG MP2. A voluntary 5-year savings programme run by Pag-IBIG Fund, with tax-free dividends. The rate is declared each year for the year before. See Pag-IBIG MP2.
- Retail Treasury Bonds (RTBs). Bonds from the national government for small investors. RTB-32, offered from 29 September to 7 October 2026, runs for 2.5 years at a rate fixed for the issue, with interest paid quarterly, from PHP 5,000. That offer has closed; each issue has its own rate and term. See Retail Treasury Bonds.
- Treasury bills. Short-term government debt of 91, 182 or 364 days, sold at a discount at regular auctions. See treasury bills.
MP2 dividend rates declared by Pag-IBIG Fund, by year:
- MP2, 2021
- 6.00%
- MP2, 2022
- 7.03%
- MP2, 2023
- 7.05%
- MP2, 2024
- 7.10%
- MP2, 2025
- 7.12%
These are past rates, published by Pag-IBIG Fund. Past rates do not predict future ones.
A retirement account with tax breaks
PERA is a retirement account under RA 9505, opened with an accredited administrator. It holds products such as UITFs, mutual funds and government securities, so its value depends on what you choose. Contributions earn a 5% tax credit, up to PHP 200,000 a year, or PHP 400,000 for overseas Filipinos. See the PERA guide.
Bank savings
Savings accounts, time deposits and digital bank accounts are deposits. The Philippine Deposit Insurance Corporation (PDIC) insures deposits in its member banks up to PHP 1,000,000 per depositor, per bank, from 15 March 2025. Interest is taxed at 20%, withheld by the bank.
- High interest savings accounts: how rates and conditions work.
- Time deposits: a fixed rate for a fixed term.
- Time deposit calculator: the interest on a deposit after tax.
- Digital banks: online-only banks and how PDIC cover applies.
Pooled funds
In a pooled fund, many people’s money is invested together by a professional manager. Its value moves every day and can fall. PDIC does not insure investment products such as these (RA 9576 Sec. 4(f)).
- UITFs are run by banks’ trust departments under BSP rules. See the UITF guide.
- Mutual funds are run by investment companies registered with the SEC. See mutual funds.
- Index funds track a stock market index instead of picking shares.
Stocks and REITs
Shares in companies listed on the Philippine Stock Exchange can rise and fall a lot, and dividends are never promised. A REIT (real estate investment trust) is a listed company that owns rental property and pays out income to shareholders as dividends; its share price moves too.
- Dividend stocks: how dividends work and what to check.
- REITs: how Philippine REITs work.
Other things people ask about
Passive income: what is realistic and what is a red flag.
Be wary of anyone promising high, fixed or “sure” returns, or paying you to bring in others. Selling shares, corporate bonds and similar securities to the public needs registration with the SEC, and so do the people who sell them (Securities Regulation Code, RA 8799 Secs. 8 and 28). Government securities such as RTBs and T-bills are issued by the Bureau of the Treasury. The SEC posts public advisories about companies and schemes it has found soliciting investments without the right registration.
Insurance with an investment part
Variable universal life (VUL) is life insurance where part of each premium goes into investment funds. The fund value goes up and down, and the policyholder carries that investment risk. Selling it needs a separate licence from the Insurance Commission (Insurance Code Sec. 316).
How to check anyone selling investments
- Stocks, corporate bonds, mutual funds and their sellers: the SEC’s Check with SEC system shows whether a company is registered with the SEC and whether it has the secondary licences needed for investment-taking, lending, financing and other regulated activities. A company may not solicit investments from the public unless it has registered its securities and holds a permit to sell them; you can ask the SEC for copies. Look for the company in the SEC’s advisories too.
- UITFs and bank products: the bank must be supervised by the BSP.
- VUL and other insurance: check the company and the agent on the Insurance Commission’s lists. Our guide to the Insurance Commission shows how.
For the bigger picture, see our retirement planning guides.
Questions people ask
What are the best ways to invest money in the Philippines?
There is no single best one. A common order is an emergency fund in a bank account first, then government savings programmes and securities such as Pag-IBIG MP2 or Retail Treasury Bonds, and then funds and shares, whose value can fall. A PERA can hold any of these with tax breaks for retirement. Which suits you depends on when you will need the money, how much of a fall you can live with, and the tax on each.
Talk it through
Talk through your retirement savingsSources
- Pag-IBIG Fund, Modified Pag-IBIG 2 (MP2) Savings, dividend rates (checked 20 October 2026)
- Bureau of the Treasury, RTB-32 Notice of Offering (23 September 2026) (checked 27 October 2026)
- Bureau of the Treasury, RTB-32 flyer (checked 20 October 2026)
- Bureau of the Treasury, auction press release, 27 April 2026 (T-bill tenors) (checked 20 October 2026)
- RA 9505, PERA Act of 2008 (lawphil.net) (checked 20 October 2026)
- BSP, PERA frequently asked questions (checked 20 October 2026)
- PDIC, maximum deposit insurance coverage (checked 20 October 2026)
- RA 3591 as amended by RA 9576, Sec. 4(f), what deposit insurance does not cover (lawphil.net) (checked 20 October 2026)
- BSP, Manual of Regulations for Banks, Part IV, Sec. 414, Unit Investment Trust Funds (checked 20 October 2026)
- RA 12214 (CMEPA), amending NIRC Sec. 24(B)(1), final tax on interest (lawphil.net) (checked 20 October 2026)
- SEC, Check with SEC company verification system (checked 20 October 2026)
- SEC, Advisories (checked 20 October 2026)
- RA 8799, Securities Regulation Code, Secs. 8 and 28 (lawphil.net) (checked 20 October 2026)
- Insurance Code, PD 612 as amended by RA 10607, Sec. 316 (lawphil.net) (checked 20 October 2026)