Whether you’re a recent graduate, a young professional, or just someone looking to get your finances in order, opening your first savings account is a fantastic step towards building a secure future.
But, I get it – with tons of banks out there, each boasting different perks and features, choosing the best one to park your hard-earned money can feel overwhelming. But don’t worry, we’re going to navigate through the maze of options and narrow down the search for the best bank to save money in the Philippines.
I hope you’ll be armed with the information you need to make an informed decision and kickstart your savings journey with confidence after reading this article.
Let’s dive in!
What is a savings account?
A savings account is an account you can open in a bank or any financial institution where you can earn minimal interest for your deposited money. Earnings from a savings account here in the Philippines range from .20% to .5% depending on the bank or type of savings account you chose.
Savings accounts do not earn that much but this can be a starting point for you if you are still starting your saving money journey.
I just want to emphasize that this should be your starting point. Financial experts discourage putting your money in the bank and encourage investing your money instead but you’ll get to that point and it really depends on your goal.
You can start saving in a bank while learning how to invest and while waiting for a good investment opportunity. We always recommend doing your due diligence before investing your hard-earned money.
You can learn more about investing through our investing guide but for now, let’s focus on understanding savings accounts first.
Types of Savings Account.
When it comes to choosing the right savings account in the Philippines, you’ll find a variety of options tailored to different needs and preferences.
Here are a few types of savings accounts you might come across:
- Regular Savings Account
This is the bread and butter of savings accounts. This is the normal type of savings account that most Filipinos have or open in a bank.
It’s straightforward and typically has a low maintaining balance requirement. It’s perfect for beginners who are just starting to save and want easy access to their funds.
This normally has an ATM so you can easily withdraw your money through ATM machines even if the bank is close.
- High-Interest Savings Account
If you’re looking to grow your money faster, consider a high-interest savings account.
These accounts offer a higher interest rate than regular savings accounts, which means your money can work harder for you over time. However, these types of savings accounts might come with higher maintaining balance requirements.
- Time Deposit Account
As mentioned, if you’re going to save money, you have to consider your goal. If this is for short-term goals or for long-term goals.
Now, if you’re not in a hurry to access your savings and want to earn even more interest, a time deposit might be a good option.
With a time deposit, you lock in your money for a specific period (e.g., 3 months, 6 months, 1 year) and earn a higher interest rate compared to regular savings accounts.
For this type of savings account, please keep in mind that withdrawing before the agreed-upon term might result in penalties.
- Salary Account
A type of savings account that’s often offered by employers.
A salary account is specifically designed to receive your regular paycheck. It usually comes with perks like lower maintaining balances, special rates, and convenient payroll services.
Normally for this type of savings account, you can continue this account as your regular savings account even if you’re no longer with the company.
- Online Savings Account
In today’s digital age, online savings accounts are gaining popularity. Here in the Philippines, I think this may have been hyped by the pandemic as well and people seem to have gotten used to online financial transactions.
Online savings accounts are managed entirely online, allowing you to access your funds and perform transactions through digital channels. I noticed that online savings accounts often offer competitive interest rates.
Another advantage of online savings is that they are very convenient so if you are comfortable doing transactions online. You can check out this type of savings account.
- Joint Savings Account
If you’re planning to save with a partner or a family member. Then you can open a joint savings account.
This is a useful option for shared financial goals.
- Children’s Savings Account
Now if you’re a parent and you want to start your kids young, you can consider opening a Children’s Savings account.
Many banks offer accounts specifically for minors, often with lower minimum balances and educational perks.
Remember, each type of savings account has its own benefits and limitations, so it’s important to choose one that aligns with your financial goals, lifestyle, and preferences.
Benefits of Having a Savings Account
If you’re still not convinced about opening a savings account for whatever reason. We’ll walk you through some of the benefits of opening your own savings account..
Security for Your Money
One of the primary advantages of having a savings account is the security it offers for your money.
Unlike keeping cash at home, if you’re the type of person who’s still keeping her money at home or in a piggy bank, funds deposited in a savings account are protected through the PDIC, which provides a maximum deposit insurance coverage of PhP500,000 per depositor per bank.
Earn Interest
Savings accounts typically offer interest on the funds you deposit. While the interest rates might not be as high as other investment options, it’s still a way to make your money grow over time.
This is especially helpful for emergency funds or short-term goals.
Easy Access to Funds
Unlike some other investment vehicles, savings accounts offer quick and easy access to your money. You can withdraw anytime you need it through ATM machines or if you’re going to withdraw a higher amount, then you can do it over the counter with no problems at all.
This liquidity is crucial for covering unexpected expenses or urgent needs without delays.
Convenience of Banking Services
When you open a savings account, you gain access to a range of banking services. This includes online and mobile banking, ATM access, and the ability to set up direct deposits for paychecks or automate transfers for saving purposes.
Most banks have online accounts so you can use it for online payments if needed or you can easily transfer an amount to another person if you need to.
Budgeting and Goal Setting
A savings account can be a powerful tool for budgeting and goal setting.
By allocating a portion of your income to your savings account, you create a clear boundary between your spending money and your savings. This helps you resist the temptation to spend what you intend to save.
You can also open several savings accounts for different goals and you can easily monitor your savings progress online.
Emergency Fund
We encourage you to establish an emergency fund.
Establishing an emergency fund is crucial for unexpected situations like medical emergencies, job loss, or urgent repairs. A savings account serves as an ideal place to build and store this fund, providing you with financial security and peace of mind.
Financial Discipline
How?
Having a separate savings account cultivates financial discipline. It encourages you to set aside money regularly and watch it grow.
As I mentioned above you can open different savings accounts for different goals, set a certain portion of your salary or income to your different goals and deposit this amount every time you get paid.
Over time, this discipline can extend to other aspects of your financial life.
Gateway to Financial Products
A savings account often serves as a foundation for other financial products, like loans, credit cards, and investment accounts.
If you maintain a positive banking relationship it means you’re able to have consistent savings or you have a high amount of savings for a longer period of time.
You can get offers from your bank to take a loan or they will offer you a credit card. This actually happened to me. I got an offer to open a credit card without me inquiring about it and the process was fast and easy.
How to Choose the Best Bank for Your Savings Needs
Most banks normally have the same offers or features etc.
So how do you actually choose a good bank for you?
Here are some things you can consider before choosing a bank.
- Determine Your Banking Needs and Goals
I mentioned this a lot of times already in this article so you really need to know your what is your why in opening a bank account. Then set some goals.
Take a moment to reflect on this. After reflecting you can further answer some questions like, are you looking for a basic savings account, a robust suite of financial products, or a bank that specializes in certain services?
Define your priorities – whether it’s easy access to ATMs, competitive interest rates, or online banking access because some banks don’t have any online access or apps yet especially the banks in the provinces.
- Evaluate Account Options
Different banks offer a range of account options, each tailored to specific financial needs.
Explore the types of accounts that the banks offer considering the types of savings account we discussed above, such as regular savings, high-interest savings, or if you’re thinking of opening other types of accounts like a checking account, certificates of deposit (CDs), and other types in the future.
Match these offerings with your goals. Now, if you’re aiming for higher growth, a high-interest savings account might be a better fit.
- Compare Fees and Charges
Fees can significantly impact your banking experience.
Look for banks with transparent fee structures. Check for monthly maintenance fees, ATM fees (especially for out-of-network ATMs), overdraft fees, and any other potential charges. Some banks waive fees under certain conditions, like maintaining a minimum balance or setting up direct deposits.
Also, take note that all banks charge tax on your savings earnings.
- Interest Rates Matter
Interest rates determine how much your money will grow over time. While traditional savings accounts might offer lower rates, some banks provide higher rates for high-yield savings.
If you’re looking into getting a higher interest rate then you can check these 6 digital banks here in the Philippines who are offering higher interest rates. These online banks hey normally offer higher interest rates for savings.
Research and compare these rates to maximize your earnings on your deposits.
- Convenience and Accessibility
I personally think this is one of the most important considerations as well.
Check if they have branches near you, or if you move to another place do they have branches there as well. Your goal plays a role in this too. If one of your goals is to travel or move to another province or town then consider that in choosing the right bank for you.
Also, check if they have a strong network of ATMs and branches in your area. Is their online and mobile banking user-friendly and reliable?
In today’s digital age, easy access to your accounts and the ability to perform transactions online are crucial.
- Customer Service and Reputation
Banking is more than just numbers – it’s about the quality of service you receive. I have to admit there are always challenges in banking transactions especially if your bank gets active.
So research the bank’s reputation for customer service. Online reviews and customer feedback can provide valuable insights into their responsiveness, problem-solving, and overall customer satisfaction.
You can also check if they have a customer service hotline just in case you need to call them.
Technology and Innovation
If you know that you’ll be using your account for online transactions as well, then you have to consider the technology of the bank.
Check if the bank offers features like mobile apps, mobile check deposits, person-to-person payments, and other digital conveniences that align with your preferences.
Financial Stability
Your bank’s financial stability matters. Research their financial health and stability through rating agencies and reports.
A strong, stable bank is more likely to weather economic fluctuations and provide a secure place for your funds.
I believe that choosing a bank depends on different factors or sometimes could be your personality as well. For me, I think trust is one of the factors I considered. I ask myself if I can really trust the bank when worse comes to worst.
I thought of how many years is this bank existing and I even read reviews online about the bank but most of my payroll accounts before were from my current bank as well so I think they earned my trust over time.
Additional Services
Lastly consider any additional services that might be important to you. This could include investment services, loans and credit cards.
If you’re looking to expand your financial portfolio, having these services available within the same institution can be convenient.
Best Well-Known Banks in the Philippines
- Bank of the Philippine Islands (BPI)
BPI is known for its long history and strong reputation. It offers various savings accounts, investment opportunities, and digital banking solutions.
When it comes to opening a savings account, BPI offers different options for you. You can check their website for different options.
Their most common savings account has the following details:
| Required initial deposit | P 3, 000.00 |
| Required ADB | P 3, 000.00 |
| Required daily balance to earn interest | P 3, 000.00 |
| Interest rate per annum | 0.0625% |
- Banco de Oro (BDO)
BDO is one of the largest and most popular banks in the Philippines, offering a wide range of financial products and services including savings accounts, loans, credit cards, and investments.
They also offer different savings account options depending on your needs. Their most common savings account is
| Required initial deposit | P 2, 000.00 |
| Required ADB | P 2, 000.00 |
| Required daily balance to earn interest | P 5, 000.00 |
| Interest rate per annum | 0.0625% |
- Metropolitan Bank and Trust Company (Metrobank)
Another major player in the Philippine banking scene, Metrobank offers a diverse set of banking services and has a widespread network of branches and ATMs.
Metrobank Regular Savings Account:
| Required initial deposit | P 2, 000.00 |
| Required ADB | P 2, 000.00 |
| Required daily balance to earn interest | P 10, 000.00 |
| Interest rate per annum | 0.0625% |
- Land Bank of the Philippines (Landbank)
Landbank is a government-owned bank that primarily focuses on supporting the agricultural and rural sectors. It offers a variety of financial services and programs to promote inclusive growth.
They also offer different savings account options so you can check their website for other savings offer. Other types of savings accounts may require a higher amount of initial deposit and ADB.
Landbank Regular Savings Account:
| Required initial deposit | P 500.00 |
| Required ADB | P 500.00 |
| Required daily balance to earn interest | P 500.00 |
| Interest rate per annum | 0.05% |
- Philippine National Bank (PNB)
PNB offers a variety of banking services including savings and checking accounts, loans, and remittance services. It has a focus on serving both local and overseas Filipinos.
| Required initial deposit | P 3, 000.00 |
| Required ADB | P 3, 000.00 |
| Required daily balance to earn interest | P 10, 000.00 |
| Interest rate per annum | 0.10% |
- Security Bank
Security Bank is recognized for its innovative banking solutions and customer-centric approach. It provides a range of financial products tailored to individual and business needs.
Security Bank Regular Savings Account:
| Required initial deposit | P 5, 000.00 |
| Required ADB | P 5, 000.00 |
| Required daily balance to earn interest | P 10, 000.00 |
| Interest rate per annum | 0.50% |
- UnionBank
UnionBank is known for its digital banking initiatives and innovative technology-driven solutions. It offers a range of accounts and services catering to different customer segments.
UnionBank Regular Savings Account:
| Required initial deposit | P 10, 000.00 |
| Required ADB | P 10, 000.00 |
| Required daily balance to earn interest | P 25, 000.00 |
| Interest rate per annum | 0.10% |
Best Banks based on Asset-based Bangko Sentral ng Pilipinas
Now if you’re trying to look for a stable bank here in the Philippines, maybe you can consider checking their assets based on Central Bank of the Philippines (BSP) data published on the 31st of March 2023.
Here are the top 10 Ranking Banks based on Assets.
| 1 | BDO UNIBANK INC (BDO) |
| 2 | LAND BANK OF THE PHILIPPINES (Land Bank) |
| 3 | BANK OF THE PHIL ISLANDS (BPI) |
| 4 | METROPOLITAN BANK & TCO (Metro Bank) |
| 5 | CHINA BANKING CORP (China Bank) |
| 6 | RIZAL COMM’L BANKING CORP (RCBC) |
| 7 | PHIL NATIONAL BANK (PNB) |
| 8 | DEVELOPMENT BANK OF THE PHIL (DBP) |
| 9 | UNION BANK OF THE PHILS (UnionBank) |
| 10 | SECURITY BANK CORP (Security Bank) |
Requirements in Opening a Savings Account
If it’s your first time to open a savings account in the Philippines or may have had an existing one but want to open an account with other banks, you will typically need to provide certain documents and meet specific requirements as mandated by the bank and regulatory authorities.
While these requirements can vary slightly from one bank to another, here are the common documents and information you’ll likely need:
- Valid ID
You will need at least two (2) valid government-issued IDs. Commonly accepted IDs include:
- Passport
- Driver’s License
- Social Security System (SSS) ID
- Unified Multi-Purpose ID (UMID)
- Postal ID
- Professional Regulation Commission (PRC) ID
- Voter’s ID
- Proof of Address
Banks often require a document that proves your residential address. This can be:
- Recent utility bills (electricity, water, etc.)
- Billing statements (credit card, bank statement)
- Lease agreement or rental contract
- Barangay Certificate of Residency
- TIN (Tax Identification Number)
If you already reached the legal age, normally 18 years old and above you will need to provide a TIN.
A TIN is required for tax purposes. If you don’t have one, you will need to apply for it from the Bureau of Internal Revenue (BIR) before applying for a bank account.
Applying for a TIN is easy, just visit the nearest BIR office in your area.
- Initial Deposit
You have to prepare an amount for the initial deposit required by the bank, depending on the bank’s required initial deposit. You can check the bank’s website to check their initial deposit amount. The minimum deposit can vary widely depending on the bank and the type of savings account you’re opening.
You may also need to prepare an amount for the ATM card.
- Completely Filled Application Form
You will need to fill out an application form provided by the bank. This form collects your personal and contact information.
This is going to be provided by the bank but if you will open an account online then you will need to fill out the online application form.
- Proof of Income
Some banks may ask for proof of income, especially if you’re opening a high-tier savings account or if you’re applying for additional banking services.
This may also depend on your source of income, the bank basically needs to know where your savings will be coming from. Some may be using their accounts for remittance so just inform the bank if this is the case.
If you’re receiving a salary, you can bring a photocopy of your latest payslip.
- Passport-sized Photos
Some banks may require passport-sized photos of you. Check with your chosen bank for their specific photo requirements.
It’s best to ask your bank first just in case you don’t have a photo ready. Some banks just take a photo of you through their computer so this may not be required.
- Additional Requirements (for Foreign Nationals)
If you are a foreign national, you might need to provide additional documents such as your Alien Certificate of Registration (ACR), ACR I-Card, and other immigration-related documents.
These are the most common requirements for opening and account.
It’s always best to call or visit the bank and ask for the complete requirements if you are a Foreign National.
Remember to bring both original documents and photocopies to the bank, as they may need to keep copies for their records.
Additionally, it’s always a good idea to bring some extra identification documents in case the bank requires further verification or documentation.
Conclusion
Choosing a bank depends on different factors.
Before making a decision, it’s best to research each bank’s current offerings, fees, interest rates, customer reviews, and their presence in your local area. Always choose a bank that aligns with your financial needs and provides the level of service you’re looking for.
You can also check the Rural banks in your area so you can compare the offers and interest rates.
Good luck in opening your Savings Account. We hope we are able to guide you.