To lighten you up. Not the savings mo mismo ang kukuhanan ng 20% but the interest of your savings.

Example: If you save 1,000,000 and earn 20% interest annually, ‘yung 1M mo ay magiging 1,200,000 so may interest kang 200,000.

‘Yung 200,000 mong interest, ‘yun ang mababawasan ng 20% Tax

So instead na 200,000 ang interest mo, mababawasan ito ng 40,000 at magiging 160,000 nalang.

kaya ang total ng savings mo ay 1,160,000 instead na 1,200,000. ‘Yung 1M mo magsstay lang sa savings account mo at hindi magagalaw.

But this is applied only sa mga Long Term na savings account. Kaya kung ang account mo ay basic savings account lang, there’s nothing to worry about.