Where to put your Savings? In a Cooperative or a Bank?
Every first month of the year, I usually check on our financial status and list down some responsibilities we need to accomplish.
Bad experiences from the past taught me to check on our assets vs liabilities and make sure that the latter gets smaller every year.
Anyway, today I’m going to tell you which one is better to put your money for savings purposes: in a Cooperative or Bank.
Why choose a Bank?
They operate nationwide and some have branches overseas. Commercial banks trade in foreign currencies. *
They have ATM everywhere for easy withdrawal of money. You can send money from one branch to another without additional cost (for some). They can provide personal, business, housing and car loans. They can be transacted online that will save you more time and energy.
Why choose Cooperative?
This is a financial institution that is run by its members. These members are both the owners and the customers, by virtue of holding shares and/or having deposits with them. Cooperative typically lend money to small businesses and individuals and tend to offer better rates of interest to savers than banks. * bizfluent.com
They offer as low as 1% interest on loans too.
Our family both have savings account in banks and in a cooperative. We choose a bank for money that we need to use frequently like for bills payment. But we have money in a Cooperative too because they offer bigger interest per annum compared to banks. They don’t have withholding taxes too. We put money that we don’t need to use for a year or two there.
Our cooperative is in Paco because that is where we live before. They are called PACO SAVINGS AND CREDIT COOPERATIVE and they will celebrate their 35th year in business this year.
Here are the products they offer to their members:
As the saying goes, do not put all your eggs in one basket, so I suggest to study and check other options on where to put your hard earned money into.
If you are around Manila and want to be a member of Paco Credit Cooperative, you only need to present the following:
2pcs 2×2 ID Picture
Photocopy of any Valid ID (SSS, TIN, Voters, Postal)
Proof of Billing (Meralco, Manila Water, PLDT etc)
Fill up Membership Application Form
and go to their office at 1461 Merced st. Corner Perdigon st. 1007 Paco, Manila
You can contact them at the following:
Tel Number: 5615267 / 2554963 / 0908-3688038 / 0995-8142815
Email Add: firstname.lastname@example.org
Like them on Facebook – https://www.facebook.com/PacoCreditCooperative/
Kristine legaspi says
Thanks for sharing mommy, mas naliwanagan ako sa dalawang option na ito.mas consider ni mister ang coop so dito kame mag save para sa future ng aming mga anak
Roselle Rubi says
Wow. Helps me a lot. Lalo na sa mga kids ko! ? thanks for sharing mommy
Charm vertudez says
Thanks for sharing mommy . it really helps me alot ??? for my baby’s future we need to save ?
Crystal Mhej says
gusto ko i try yan mag save sa cooperative
since endorsed mo na po ito mommy levy
sadyain ko nga ito.
Divine Palanas says
Matagal ko na gustong maginvest sa mga coop.
Pero hindi ko maumpisahan kasi nagddalawang isip ako palage. Buti na lang nabasa ko to and nagkaron na ako ng idea. Thanks mommy Levy ?
Estrella Reyes says
Pwede naman po both as long as kaya naman po I-provide yung financial needs. Maganda din po na kasali tayo sa mga coop kasi nakakatulong po ito sa atin. I experienced it before when I was working pa. Meron po kaming coop sa office. Yearly may dividends kaming nakukuha. I can also ask loan if I need financial assistance, and so on.. Then when I resigned, mas malaki pa nakuha ko sa coop kesa sa separation pay ko, hahaha! Joke lang po.. Kaya maganda din po na member tayo sa Kooperatiba kasi it really helps.
Fb Account: Abba Seyer
Mariya Bektorya says
I think mas better yung Cooperative dahil meron din silang dividend shares. #spreadtheLEV
FB: Mariya Bektorya
Dangelyn Natividad says
Now I know, salamat mommy. -Dangelyn Natividad-Taotao
Vera Marie Gumboc Cruz says
Hi Mommy, I also believe in the saying “do not put all your eggs in one basket”. It is best to diversify.
Eliza Cristobal-Cruz says
A very enlightening article. Thanks, Mommy Levy ?
Ingkay Garutay says
I thought they are no longer approving savings account for non-members?
Mommy Levy says
you need to be a member before you can avail of savings account
My husband has a coop account and I think the nice thing about it is the unaccessibility to easy withdrawal unlike banks na pwede maubos agad with just a swipe.
Mommy Levy says
My mom and my mother-in-law both have good experiences with coops. The good ones really provide benefits to its members, especially in times of need. You just need to check the requirements of the coop as well though coz in my mom’s case, the coop requires members to attend monthly meetings. If you don’t attend, it will be held against you when it comes to approvals for loans, etc.
Aci Girl says
With the keme and hassle of some known banks here in the country, nakakainis ng mag bangko 🙁
Mommy Levy says
sana nga may Coop ATMS na e haha
I’ve first heard of coops when I was still working. The group where I belonged had this coop. I didn’t join though because it was not clear to me why I would entrust my money to them and not save it in the bank.
Cooperative has bigger interest rate and its easier to make loans once you’re a member. Your post is very informative.
We usually put ours in a deposit account and investment 🙂 I haven’t tried cooperatives yet, so I better check this out first 🙂 Looks like a good alternative as well.
This is informative. I haven’t consider putting money in cooperatives – i find it risky. But maybe, risking would get me better yield in my money.
Mommy Levy says
it’s not risky because they are also regulated to operate by the Banko Central. Just make sure stable na yung sasalihan mong Coop.
I was a member of a coop here in my province…as far as i know…Coops are registered in CDA…they give you back your full money, while Banks which registered under PDIC…if it will hapen to close or incase…they only give half of ur money…
Rowena Wendy Lei says
I tend to just put everything in the bank.
Very good advise Mommy not to put our eggs in one basket. Will check this cooperative too that you suggested 🙂
Both! We have our emergency fund in the bank because it’s not there to grow – it’s there for convenience just in case of an emergency. We prefer naman to put other savings and our time deposit in our coop because of the higher interest rate.
Ramona Jessica says
This is the first time hearing about cooperative, may mga ganyan pala dito sa Philippines. I only know about banks and I honestly am not impressed with their security anymore, lalo pa nung kabi-kabila ang mga nawawalan ng money. I wanted to try cooperative, hoping na merong malapit na cooperative offices samin.
Mommy Rockin' In Style says
What an informative post Mommy! We both have a savings and coop account. Every year yung roll nung coop pinapasok namin sa savings para hindi magalaw. Mas nakakaipon kami. 🙂
I wanted to put some of our money sa cooperative last year pero walang malapit kasi samin. Huhu. I learned from a friend maganda ganda nga ang interest and ikaw mismo pwedeng magloan. I’ll consider that Coop sa Paco since taga Manila lang kami 🙂
Berlin | Momi Berlin says
I Agree on putting money in bank for easy withdrawal or payment of bills and the like. For cooperative, it is more on long term savings.
Via Dela Peña says
This is very informative Mommy Levy. As a mom of a boy, I have to secure his future. 🙂
Rica Mananquil says
Thanks for Sharing mommy Levi, You give Some Ideas how to Save… Many Thanks Po Talaga…
Interesting nice mommy levy thank you for this .
Love Compoc says
may point ka naman Mommy Levy. Plus that 1% interest sa loans ang kinaganda din? naliwanagan ako lalo ??thanks for sharing?