18/07/2025
𝗧𝗛𝗘 𝗧𝗥𝗨𝗧𝗛: No, your total savings is NOT being taxed. Only the interest or “tubo” your money earns gets a 20% tax.
Your ₱100,000 is still ₱100,000.
But if it earns ₱6,000 in interest, that’s when the 20% tax applies.
Quick math:
₱6,000 interest × 20% = ₱1,200 tax
You get to keep ₱4,800 of your earnings.
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𝗪𝗵𝗮𝘁 𝗮𝗿𝗲 𝘁𝗵𝗼𝘀𝗲 𝗡𝗢𝗧 𝗔𝗳𝗳𝗲𝗰𝘁𝗲𝗱 𝗯𝘆 𝘁𝗵𝗲 𝟮𝟬% 𝗧𝗮𝘅 (𝗮𝘁 𝗹𝗲𝗮𝘀𝘁, 𝗳𝗼𝗿 𝗻𝗼𝘄):
Cooperative Time Deposits – if you’re a member of a registered coop, your savings might earn dividends tax-free.
Pag-IBIG MP2 Savings – government-backed, 5-year term, tax-free dividends (subject to availability).
Stocks & Mutual Funds – gains here have separate tax rules (e.g. capital gains tax, stock transaction tax), but not the blanket 20% on savings interest.
Digital wallets/investment apps – some fintechs offer savings-like products with varied tax implications (check each one carefully).
Life Insurance with Investment (e.g. VULs) – long-term growth, with built-in life protection, and not taxed like bank deposits.
Crypto platforms – risky, yes, but currently not affected by this FWT (Final Withholding Tax).
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So… what now?
You don’t need to pull your money out of the bank.
Diversify: Consider splitting your money across bank, Stock Market, Mutual Funds, PDF, MP2, coop, investment apps, etc.
Ask questions: Not all "savings" are created equal. Some grow quietly, some are taxed loudly.
“Where else can my money grow better?”
“What other options are safer and smarter?”
Don’t panic—but also, don’t park all your dreams in one taxed bucket.
Let’s talk. Let’s learn. Let’s grow.
Here —we break down big changes in real talk.
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