Presented to the Mathematics and Statistics Department

De La Salle University - Manila

Term 3, A.Y. 2018-2019

In partial fulfillment
of the course
In Mathematics in the Modern World (L81)

Managing Personal Finances

Financial Plan

Submitted by:
Isla, Nicandro Assante G.

Submitted to:
Ms. Tan, Michele G.

September 30, 2018

 TABLE OF CONTENTS

TABLE 101………………………………………………………………........…p. 2

INFORMATION FROM BANKS………………......………………….......….p. 3

Banco De Oro (BDO)…………….………………………………................…....p. 3

Security Bank.........................................................................................................p. 7

Bank of the Philippine Islands (BPI)....................................................................p. 11

STOCKS..............................................................................................................p. 15

Banco De Oro (BDO)...........................................................................................p. 15

Security Bank.......................................................................................................p. 16

Ayala Corporation................................................................................................p. 17

SM Investments Corporation...............................................................................p. 18

TERMS & CONDITIONS................................................................................p. 19

Banco De Oro (BDO)..........................................................................................p. 19

Security Bank.......................................................................................................p. 20

Bank of the Philippine Islands (BPI)...................................................................p. 22

FINANCIAL ANALYSIS.................................................................................p. 23
TABLE 101
1. Banco de Oro (BDO)
A. Time Deposit
A1. Basic Requirements
• Employed
• 2 Government-issued IDs

A2. Maintaining Balance

• Minimum Initial Placement: 1,000 pesos

*Service Fee: Withholding tax on interest earned = 20%

 B. Personal Savings

Fees and Charges

(2) Account Closure Fee will be collected if account is closed within 30 days from account opening.

(3) Falling Below Minimum Balance Fee will be collected if account falls below the required minimum

MADB for two consecutive months.

(4) Account Dormancy Fee will be collected if account is dormant and falls below the minimum MADB.

Requirements

 2 valid IDs (original & photocopy)

 TIN (Tax Identification Number)
 Billing statement (to verify your billing address)
 2 copies of 1×1 photo (bring 2×2 also)
 Initial Deposit
 C. Personal Loan

C2. Basic Requirements

 Filipino citizen or foreigner residing in the Philippines for more than two (2) years
 Must be 21 years old at time of application but no more than 70 years old upon maturity
 Minimum Gross Annual income
 P120,000 for Salaried Employees
 P400,000 for Self-Employed / Professionals
 Must have a mobile phone and at least 1 landline phone at either residence or office
 Residence or office must be within BDO serviceable area
 Additional application requirement for Salaried Employees
o Must be at least one (1) year tenure with the company
 Additional application requirement for Self-Employed
o Must be a sole proprietor or majority part-owner of a company operating for at least two (2)
years.
 Additional application requirement for Professionals
o Must be in private practice for at least one (1) year
C3. Document Requirements
Pre-Approval

• Proof of Income for Salaried Employees

o Photocopy of the latest BIR Form 2316 or W2 signed by employer's authorized representative
(MANDATORY) and submit any of the following:

 Original Certificate of Employment and Income (COEI) issued in the last three (3) months
indicating status, length of service and breakdown of compensation

• Proof of Income for Self-Employed/Professionals

o Photocopy of Registration of Business Name

o For Single Proprietorship issued by the DTI (Department of Trade and Industry)

o For Partnerships issued by the SEC (Securities and Exchange Commission)

 Photocopy of latest ITR and W4 with BIR/Bank Stamp (MANDATORY)

 § Photocopy of latest Audited Financial Statements for thelast two (2) years
 Photocopy of Bank Statements for the last six (6) months (OPTIONAL)

• Proof of Identification - Photocopy of at least two (2) valid photobearing identification documents,
front and back, issued and signed by an official authority

D. Money Market
2. Security Bank (SECB)
A. Personal Loan

A1. Qualifications
• At least 21 years old at the time of application but not more than 65 years old upon loan
maturity
o Must be a Filipino Citizen
o Must have an office or residence landline.
• If Employed
o Minimum gross monthly income:
 For Metro Manila: PHP15,000
 For outside Metro Manila: PHP12,000
• If Self-employed:
o With at least two (2) continuous years of profitable operations in the same line of business
o Minimum gross monthly income:
 For Metro Manila: PHP30,000
 For outside Metro Manila: PHP25,000
A2. Documentary Requirements
• Filled out and signed application form.
• For employed:
• One (1) valid government-issued photo ID
• Income Documents, any of the following:
 Certificate of Employment and Compensation – issued within the last six (6) months
 Latest ITR
 Latest one (1) month payslip
• For self-employed applicants:
• One (1) valid government-issued photo ID
• Previous Year Audited Financial Statement
• SEC Registration / DTI Certificate
• Business Permit / Mayor’s Permit
• Latest three (3) months bank statements
• Latest GIS (if corporation)
Note: Additional documents may be required to process the loan.
B. Personal Savings
- high-interest savings account open to individuals, sole proprietors, and
corporations.
- can earn up to 1% interest per annum as you receive a monthly and a
quarterly bonus interest as long as NO WITHDRAWALS are made in a certain period.
B1. Requirements

• For Resident Citizen, Non-resident Citizen and Resident Alien 1 primary valid ID or 2
secondary valid IDs Click here for the list of valid IDs
• For Non-resident Alien Passport and Alien Certification of Registration (ACR) I – Card or
Alien Employment Permit (AEP)
C. All Access Checking and Savings Account

• a savings and checking account that comes with a passbook, checkbook, Everyday Debit/ ATM
Mastercard and free Life Insurance

C1. ID/Documentary Requirements

• For Resident Citizen, Nonresident Citizen and Resident Alien 1 primary valid ID or 2
secondary valid IDs
• For Non-resident Alien Passport and Alien Certification of Registration (ACR) I – Card or
Alien Employment Permit (AEP)
D. eSecure Account
• higher-earning savings account for existing Security Bank Easy or All Access account owners
E. Money Market
3. Bank of the Philippine Islands (BPI)
A. Personal Loan

A2. Document Requirements

• Employee/Professional
1. Government-issued photo-bearing ID (Passport, Driver's License, SSS, PRC, etc.)
2. 3 months’ original pay slip and/or Latest Income Tax Return with BIR or Bank stamp (BIR
Form 2316)
• Self-Employed
1. Government-issued photo-bearing ID (Passport, Driver's License, SSS,
PRC, etc.)
2. Audited Financial Statements for the last 3 years
3. Latest Income Tax Return (BIR Form 1700 / 1701)
4. DTI Business Permit or SEC Registration
● Benefits
○ Get big discounts on products and services if paid in cash.
○ Avail of products and services that are only available in cash.
○ Personal Loan is also a great and easy way to stay in control of your
finances, given the following:
○ Fixed interest rate for the entire term of the loan, so your monthly
 installment never changes
○ Fixed term so you know how many payments you need to make to pay off your loan
○ Longer payment period gives you the flexibility to fit your monthly
installment right into your budget.
○ Monthly principal payments make sure that your outstanding loan
steadily decreases over time.
○ All you have to remember is to pay your loan on time to preserve your
good credit standing.
B. Savings
B1. Requirements
1. 2 Valid IDs
2. Billing Statement (verification of address);
3. 2 copies of 2x2 photos;
4. TIN Number (except students); and
5. Required Initial Deposit.
C. Money Market
 STOCKS
1. BDO Unibank, Inc.

I choose BDO to invest in

because BDO is one the
known banks and the leading
bank here in the Philippines
which has the best service
among all. I know its offers
will give me a lot of benefits
that will help me reach my
goal. As you see in the chart
as well, there are times that
the values rise and drops on a
certain time. This could be an
advantage for me since I can
buy shares for a very low price
then sell it as soon as the
values goes up. Some say it
may be risky but at least the
values aren’t low.
2. Security Bank Corporation

I choose Security Bank to invest

in because it’s also one of the
known banks here in the
Philippines. It also gives out very
nice offers and privileges when
you choose to pick their bank.
Attaining those privileges will
indeed help me reach my goal. If
you were to observe the chart.
Security bank had a consistent
value shares on Oct- April 2018,
but drops on the same month of
2019. This could be somewhat
an advantage and disadvantage
for me considering the values
were high in my starting months
which I can take advantage of
but drops on my latter years.
But even though values were
low I can take advantage of it by
selling it at a very low price as
soon as it goes up in the future
months.
3. Ayala Corporation

I choose Ayala Corporation since

it’s one of the leading and
successful companies in the
Philippines. It’s known for its
Ayala malls that are located in
different parts of the country.
And with that kind of reputation
I had this impression that
investing my money to their
company will be a great help for
me. Their offers will indeed help
me in reaching my goal. Seeing
the chart, I can say it can also be
an advantage for me as the
values has its uptrend on my
early months of investment.
Although values follow an
inconsistent trend, I can still
make a way in using that trend
in achieving my goal.
4. SM Investments Corporation

I choose SM Investments
Corporation since their
company is the leading
company in the Philippines
which also has partnerships with
BDO. Having that prestigious
reputation, I immediately knew I
can trust the company with my
investments. Investing in this
company will assure me that I
can earn interest with the least
amount of risk. Since SM is the
biggest company known and is
continuing to grow it can be
assured that it will continue to
be in an upward direction in the
future.
 TERMS AND CONDITIONS
1. Banco de Oro (BDO)

Retrieved from:

https://www.bdo.com.ph/sites/default/files/pdf/BBG-
Terms-and-Conditions.pdf
2. Security Bank (SECB)
Retrived from:
https://www.securitybank.com/wp-content/uploads/2017/12/SBCGEN-TC-Individual-as-of-
Jan-2016-SBC.pdf
3. Bank of the Philippine Islands (BPI)

Retrieved from:
https://www.bpiexpressonline.com/p/1/354/tc-terms-and-conditions
 FINANCIAL ANALYSIS

My goal is to be able to provide my parents a 6 Day Trip to Maldives since it’s my way of giving
back to them and just to spend quality time with them during my break. My Family loves traveling so I
knew to myself that this can be a perfect goal or surprise to them. I should be able to surprise them
after working for 2 years in the company as an IT Expert. And after exploring and evaluating my
options, I think it would be best if I would open a savings account and a time deposit account.

For my saving account, what I’ve heard from other sources is that a good bank to invest in is
Security Bank. So I will be choosing to invest there since I also have an existing all Access account with a
balance of P10,000 which I can be able to upgrade for their Buildup Savings account. According to Trono
(2018) the building savings account has two types- the regular account with an opening balance of P5000
and an interest rate of 0.50% per annum, and the premium account with an opening balance of P50,000
and an interest rate of 1.00% per annum. In this case I will definitely prefer the premium so that it will
give me a higher interest.

With this 50,000 pesos, I will be adding P53,040 to this account which I saved from my monthly
savings for the first 3 months of 2022. My opening balance of my Security Bank Savings Account will have
a total of P103,040.

Cash on Hand (March 2022) P 53,040

Security Bank Cash P 50,000
Total Amount to put in Savings Account P 103,040
Interest earned P 1,030.4
Matured Amount (March 2023) P 104,070.4

I will start January 2023 with P10,000 which is added to my monthly savings after the first 3
months of 2023, I will invest the money to my existing savings account in Security Bank and upgrade it
to a Build-money savings account where I will be able to earn .1% interest per annum. I will be able to
collect this amount with the interest at the end of March 2024.

From April 2023 up until December 2023, I will be collecting my monthly savings and put it in
Metrobank’s Time Deposit at the end of December 2023. I will withdraw all the cash on time deposit on
December 2014 with a credit term of 360 days, 0.075% per annum. Starting January 2024, I will have no
 outstanding cash once again. On April 2024, I will be adding the money from Security Bank (P104,070.4)
to my Cash on Hand on that month (P68,540) which makes my total cash P 172,610.4. I will be collecting
the monthly income until June 2024 (P 223,610.4). I will be placing this amount in UCPB’s time deposit
in credit terms of 90 days 0.075% per annum. The interest I will be earning from this will be rolled over
once only which is on October 2024. I will be withdrawing both of my time deposits from Security bank
(P223,610.4) and UCPB (Matured amount: P 301,345.6). At the end of 2 years, I will have earned
P524,956.

To summarize, these were the options that I used:

1. Monthly Savings
2. Savings Account – Security Bank
3. Time Deposit- Metrobank
4. Time Deposit – UCPB

Working in the company as an IT Expert has been a vital role in helping me gain money that I need to
purchase that 6 Day tour in Maldives for my Family. Because of my work and less amount of expenses, I am able
to maintain a consistent profit monthly. A bonus to this is because my monthly income is already enough in
helping me raise money that I need.

Out of all the savings account offered by numerous banks I’ve inquired at, Security Bank has been the
best option for me because it is the only bank that meets my demand in giving a high interest.

For the time deposits, I chose Metrobank because of the high interest it can give for 12 months despite
the service fee and UCPB became my second option for the short term deposits.

Money Markets and stock investments can give you profit, but it is not always certain. It’s risk in investing
on these two, that is why I strategized my options because I know to myself that I will earn profit without having
that feeling of anxiety. Even though there are a lot of companies that have higher values in terms of their
investments, you will still worry about your money since it’s not guaranteed that your money will be doubled
nor given back to you.

Overall, this activity helped me in strategizing my savings by evaluating better the options that I have.
Strategizing my money is good way in helping you earn profit. It lessens your unease towards your investments
and it makes you certain on the steps you will make in order to gain back the money you invested and also to
help you in your future goals in life. This indeed helped me to become more practical and also realistic in terms
of handling my money.
 At the end of 2 years, I was able to earn P P524,956 which is more than my financial goal. Not only am I
able to provide a 6 Day Maldives Trip to my parents, but the remaining cash that I have (P24,956) can be spent
on my personal needs or even used to pay for my loans if I originally borrowed.

Amount earned after 2 years P524,956

Financial Goal (6 Day Trip to Maldives) P500,000
Remaining Cash P24,956