Want To Open A Savings Account? Here's How To Do It And Which Banks Are The Best
Ready to save for the future?
They say that money makes money. This could mean investing, it could mean starting a business, or gambling, or doing something as simple as opening a savings account to let your money grow. But which are the best savings accounts in Philippines?
Whether you open a savings account to budget your finances or to park an emergency fund or simply to store your money, you have to make sure to choose from the best savings accounts in Philippines.
With so many options to choose, it’s hard knowing which is the best savings account in Philippines, so we’re here to help with that.
But before you make your choice, here are a few things to know.
Source: Pixabay
How to open a savings account in Phillipines?
Source: Unsplash
To get started, you just need the following:
- 1-2 valid ID’s (according to bank requirements)
- Proof of address (e.g. utility bill)
- 2 Passport sized photos (2×2)
- Application form
- Minimum Deposit (varies from bank to bank)
You simply head to the bank branch you want to open your account with and pass the above. They’ll photocopy the ID’s for their record. If all is in order, the account will open within 2 days and you’ll receive your ATM card within a week. You just need to reset the pin the first time you use it and you’re good to go.
What are the differences between savings accounts?
Good question! There are a few things that affect your choice of savings account that everyone has to consider.
1. Ease of access
Some banks are more limited in their flexibility of using their services, as you can only withdraw or deposit money from that branch. This might not be an issue for you if you like structure and know you will only visit one branch. But if you’re on the move a lot and need access to your account outside of Metropolitan Manila, it is worth checking if your account can only be accessed from a specific branch.
2. Interest rates
This is especially important when picking a savings account in Philippines if you are planning to save. The compound interest will add up, and this affects a lot of people. The industry average is about 0.25%, but certain banks offer promotions and packages above this rate.
3. Initial deposit
Nowadays, savings accounts don’t require you to have PHP 5000. But an initial deposit is still needed to kick-start your account. Furthermore, you are expected to deposit a lot more in order to keep it running.
4. Maintaining balance
Despite low initial deposits, any savings account in Philippines requires you to have a minimum balance to keep the account active. Falling below this incurs service charges.
5. Required daily balance to earn interest
Even with the maintaining balance, most savings accounts will require a slightly higher balance to be eligible to receive interest. Which shouldn’t be an issue if you aren’t planning on withdrawing from the account regularly!
So, if you’re ready, here are the best savings accounts in Philippines for you to choose from:
Top 7 savings accounts in Philippines
1. Metrobank ATM Savings Account
Source: Wikimedia Commons
Interest rate: 0.25%
Initial deposit: PHP 2,000
Maintaining balance: PHP 2,000
Required balance to earn interest: PHP 10,000
Metrobank is one of the most established banks. It has excellent customer service, which is why many people open an account here despite the higher balance required to earn interest.
2. BDO Peso ATM Debit Card
Source: BDO
Interest rate: 0.25%
Initial deposit: PHP 2,000
Maintaining balance: PHP 2,000
Required daily balance to earn interest: PHP 5,000
BDO is probably the most well-known bank in Philippines! There are many banks across the country, so it’s a tried and tested bank. The rates are standard, but your money will be safe!
3. China Bank Savings Easi-Save ATM
Source: Wikimedia Commons
Interest rate: 0.5%
Initial deposit: PHP 500
Maintaining balance: PHP 500
Required daily balance to earn interest: PHP 1,000
China Bank Savings’ ATM account is great for beginners! It has a lower initial deposit, a higher interest rate and lower required daily balance to earn interest compared to the more established banks!
4. BPI Express Teller ATM Account
Source: Forbes
Interest rate: 0.25%
Initial deposit: PHP 500
Maintaining balance: PHP 3,000
Required daily balance to earn interest: PHP 5,000
BPI is another established and popular bank. The initial deposit is low, but the difference between the maintaining balance and balance to earn interest are different, which can be initially confusing.
5. Landbank ATM Savings Account
Source: Landbank
Interest rate: 01.%
Initial deposit: PHP 500
Maintaining balance: PHP 500
Required daily balance to earn interest: PHP 2,000
Landbank offers a relatively lower interest rate than other banks. But it’s not a bad alternative if you can’t open an account with the recommended options, or can’t afford the maintaining balance initially.
6. PNB Superteller ATM
Source: PNB
Interest rate: 0.1%
Initial deposit: PHP 3,000
Maintaining balance: PHP 3,000
Required daily balance to earn interest: PHP 10,000
Philippines National Bank has a flexible ATM savings account that is as flexible as the other accounts with better rates. Another good alternative if you can’t open with the popular banks.
7. RCB ATM Savings Account
Source: RCBC
Interest rate: 0.15%
Initial deposit: PHP 3,000
Maintaining balance: PHP 3,000
Required daily balance to earn interest: PHP 10,000
Rizal Commercial Bank offers a lower interest rate than the industry average of 0.25%. But banking with RCB opens up options to deposit into your account using foreign currency. This is helpful if you’re working abroad.
Ready to start saving with the best savings accounts in Philippines? Leave a comment below and share with your friends who might not be sure which account to open!
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