Filipinos squeezed as rising prices quietly drain savings

Your money is losing value faster than you think. Here’s how some Filipinos are fighting back

Your grocery bill creeping up is not your imagination. The main takeaway is simple: inflation is now outpacing most savings, but some higher-yield options are starting to close that gap.

The Bangko Sentral ng Pilipinas (BSP) has raised its 2026 average inflation forecast to 5.1%, driven by global pressures and elevated oil prices. Even with occasional fuel rollbacks, the ripple effect continues to push up the cost of food, transport, and basic services.

That creates a quiet problem. If your savings are sitting in a low-interest account, they are effectively shrinking in real value. What PHP 10,000 can buy today may be noticeably less a year from now.

This is where products like Salmon Bank Time Deposits are gaining attention. The bank offers interest rates ranging from 6% to 8% per annum, starting with as little as PHP 5,000. At the higher end, deposits of PHP 1 million and above can earn up to 8% p.a.

Even after the 20% withholding tax on interest earnings, these rates can still keep pace with the BSP’s 5.1% inflation projection. In practical terms, that means your savings are less likely to lose purchasing power over time.

Security is another concern as people look for safer ways to park their money. Deposits in Salmon Bank are insured by the Philippine Deposit Insurance Corporation (PDIC) for up to PHP 1 million per depositor, and the bank operates under BSP regulation. The institution, formerly the Rural Bank of Sta. Rosa Laguna, has been around since 1963.

Behind the bank is Salmon Group Ltd., backed by investors including the International Finance Corporation.

As prices keep rising, the real question is no longer whether you are saving, but whether your savings can keep up.