Guys, check this out.  June 2008 inflation rate in Philippines highest in 14 years reach 11.4%!

MANILA, Philippines—The prices of services and goods consumed by an average Filipino household went up by 11.4 percent in June from a year earlier—the fastest rate recorded in 14 years—due largely to the substantial increase in the cost of rice and other food products, the National Statistics Office reported Friday.

The price of rice soared by 43 percent because of growing demand and increased costs of inputs. This means that the rice a consumer bought for P100 in June last year may be had for P143 last month.

Prices of food products included in the Filipino consumer basket rose by 17.4 percent. This means food products that had cost P100 in June last year, cost P117.4 last month. (complete report)

This is the reason why I don’t prefer time deposit.  Why?  If you’ll put your hard-earned money in a normal time deposit in Philippines banks that have 4% interest per year and compare it to the inflation rate trend which is now 11.4% then its very clear that you are lossing - you are behind 7.4% its actual spending power.

Now it is very clear. If you still prefer time deposit then go for a bank that offers a time deposit rate higher then 13% per annum.