Using Post-Dated Checks to Fund Investments


Use your checking account to fund your investments. Photo from the internet.

It had been several years since I have put money with Philam Funds but I have not really conscientiously invested money, like monthly. Sometimes, I go there once in two months, sometimes once in two years. My only regret is that if only I had put in at least P1,000 per month, I would have P36,000 plus dividends in three years. That is my regret.

Anyhow, I found a way to put my money to good use. This is with the help of a checking account and the post-dated checks (PDC) I issued.

You see, at Philam, you can top up as low as P1,000 for each account. But I feel that going to their office with only P1,000 is not worth it, in terms of time, effort, and fare. Now, with the PDCs, I gave them investments up until December 2012. With just a one-time visit, I made investments all the way up to the end of the year and so that means I don’t have to go to their office within the year. Actually, this time I did not even visit them. They picked up my checks. Isn’t that convenient?

In order to do this, you have to set aside a portion of your monthly income so that it will go to your investments. For example, you can only afford to set aside P3,000 to top up your investment. That is fine. Issue that amount in favor of the fund that you have chosen and the office will just deposit the check on the date that you wrote. Just make sure that it is a working day.

If in case you got into a situation where your checking account does not have enough balance, just call them the day before and tell them to hold the check. It’s that simple.

Now, if perchance you got a lot of money in the middle of the year and you want to add it to your investment, then that is the only time you will have to go to their office, not monthly.

Don’t worry about your checks–you will be issued a provisional receipt plus a form that details all the PDCs that you gave them. And when the checks have already been deposited by Philam, their head office will send you a certificate of participation through courier, informing you of the number of shares bought with your money, based on net asset value per unit at the time your investment was placed, and in this case, the date on your check.

This is a tip for small-time investors. We can still do this.


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