hen you want to save money, a savings account is the most convenient, safe, and essential way to safeguard your finances. And while saving your money, you also have to choose the best way to grow your savings while they’re parked in the bank.
Some Filipinos are quite intimidated by the idea of banks. While some still opt to drop their coins in wooden coin banks, others choose to “invest” in overpromising ventures such as paluwagan, 5-6, etc. And while they solve the problem right away, the risk of losing your hard earned money is higher in these ventures.
Although banks have their downsides as well, they’re still more secure than saving your money elsewhere. Choosing the best among all your options can make a huge difference in how you make your money grow while also keeping it safe.
And with banks increasing their maintaining balances left and right, it can be quite stressful to learn that the money you saved only went to paying penalties.
So we created this list to make your lives easier!
What is the best bank for savings account in the Philippines for 2022?
All the banks in this list are subject to 20% withholding taxes on the interests earned and insured by the Philippine Deposit Insurance Corporation (PDIC) up to ₱500,000.
Some banks were eliminated from this list because
- initial deposit or maintaining balance is too high,
- minimum balance to earn interest is too high, and lastly
- interest rate may be lower or the same with other banks who offer interest rates at lower minimum balance to earn interest.
CIMB Bank PH
Why we love it:
CIMB has the highest interest rate among all available banks with 2.5% to 4% interest rate. CIMB Philippines provides an all-digital banking experience: from applications, to deposits, and withdrawals. With 0 initial deposit and 0 maintaining balance, it would not be difficult for first time savers to set up an account. The application process is easy, even more so if you already have a GCash account.
You can cash-in through Bayad Center or 7-11 and withdraw your funds anytime through any Bayad Center near you.
You can also get a FREE life insurance of up to ₱250,000.00 when you maintain a daily balance of ₱5,000.00.Download the app or apply on their website.
Bank of Commerce
What we love about it:
With just ₱500.00, you can already apply and maintain a Bank of Commerce Saving Account with an ATM card. They have branches and ATMs nationwide. To earn 0.125% interest rate, the minimum amount in your account should be ₱5,000.00.
Visit their website for more information.
Banco de Oro (BDO)
Why we love it:
They. Are. Everywhere.Wherever there’s an SM Mall, you can be assured that there is one or more BDOs there. If there isn’t an SM Mall, there’s still a BDO branch nestled somewhere along the street. It makes their branches more accessible to customers and it is convenient to drop by before or after shopping.
Balance wise, BDOs offers the average 0.125% interest rate for ₱5,000.00 minimum balance. And you only need ₱2,000.00 for initial deposit and maintaining balance. They also have full service branches in Singapore and Hong Kong.BDO’s online and mobile banking services can also be quite inconsistent.
Bank of the Philippine Islands (BPI)
Why we love it:
With only ₱5,000.00, your savings can already earn up to 0.125% interest rate and opening a savings account is not that difficult either. With ₱3,000.00 initial deposit and maintaining balance, you can already proceed with your application and start saving.
BPI Savings Account can also be easily linked to GCash with no transaction fees. Just make sure that your BPI account is linked to your GCash account for FREE cash-in transactions. Learn more here.
And have we mentioned that, similar to BDO, there are BPI Savings Banks almost everywhere. So, it’s not that difficult to physically go to their branch and fill in your application. They also took steps to ensure 24/7 banking by installing deposit machines with their ATMs.
East West Bank
Why we love it:
East West Bank offers one of the lowest initial deposits and maintaining balance in this list. You can open a Savings Account with only ₱2,000.00 initial deposit and maintaining balance. It also has a high interest rate of 0.25% compared to the 0.125% interest rate from other major banks in this list.
United Coconut Planters Bank (UCPB)
Why we love it:
Similar to East West Bank, you can open an account with an initial deposit and maintaining balance of ₱2,000.00 at UCPB. And it would be easier to get a home or car loan with UCPB when you have an existing Savings Account with them (of course, it would still depend on your savings and credit record, but it’s generally easier with UCPB than other major banks from this list).
Metropolitan Bank (Metrobank)
Why we love it:
They have a bunch of branches, almost as many as BPI and BDO. You can also open, maintain a Metrobank Savings account, and earn 0.125% interest rate with just ₱2,000.00
Philippine National Bank (PNB)
Why we love it:
You don’t have to queue for a long time since there aren’t a lot of customers on a normal day. You can open an account with an initial deposit and maintaining balance of ₱3,000.00 with 0.100% interest rate.
PNB has generally good reviews as well, especially when it comes to OFW remittances, customer service, and loan applications.
Best savings account in the Philippines
| Bank | Reason we picked it | Minimum Initial Deposit | Maintaining Balance | Minimum Balance to earn interest | Interest Rate per annum |
|---|---|---|---|---|---|
| CIMB | Has high interest, easy application with GCash, no initial deposit and maintaining balance | 0 | 0 | 0 | 2.5% to 4% |
| Bank of Commerce | Low initial deposit and maintaining balance and low minimum balance to earn interest | 500 | 500 | 5,000 | 0.125% |
| BDO | More than 1000 branches and ATMs nationwide, low min. balance to earn interest | 2,000 | 2,000 | 5,000 | 0.125% |
| BPI | More than 900 branches and ATMs nationwide, low min. balance to earn interest | 3,000 | 3,000 | 5,000 | 0.125% |
| UCPB | Low maintaining balance and initial deposit, higher interest rate compared to others in this list | UCPN 2,000 | 2,000 | 10,000 | 0.25% |
| Metrobank | Low maintaining balance and initial deposit | 2,000 | 2,000 | 10,000 | 0.125% |
| PNB | Relatively low maintaining balance | 3,000 | 3,000 | 10,000 | 0.100% |
Frequently Asked Questions about Saving Accounts in Philippines:
1. What is a Savings Account?
A savings account is an interest-bearing account in any bank or financial institutions where you can deposit money. These accounts are safe and reliable to “park” your money, while also increasing its amount through interests.
2. Are online banks safe?
Online banks are generally safe, as they implement safety protocols to safeguard your money, information, and transactions.
However, you also have to be vigilant in keeping your accounts safe. Do not disclose your PINs with anyone, do not share your online banking passwords or save them in your browsers, and report any suspicious activity to your bank.
3. Why should you get a Savings Account?
Aside from the fact that banks basically keep your money safe, having a Savings Account helps you keep your money insured (through PDIC). And your money is not just passively stored in the bank; it grows your money through savings account interest rates. Depending on the bank, your savings can grow from 0.125% to 4% per year.
4. I already have a payroll account from this bank, should I still get a Savings Account?
Although payroll accounts give you the convenience of having no maintaining balance, a payroll account is only good as long as you are connected with the company who issued the account. Once you separate from that company, the payroll account would either convert to a regular savings account automatically or would simply close (sometimes due to insufficient funds to maintain the account).
Not to mention the fact that payroll accounts do not earn interest.
Having a savings account or not is solely your decision, but having a savings account in at least one bank lets you avoid complications later on.
5. Can I have more than one Savings Account?
Yes, definitely. And banks offer different types of savings accounts as well. There are banks who offer a Savings+Checking account in one, while others have lower maintaining balance and interest rates.
6. What makes a GOOD Savings Account?
A good savings account should have high interest rates, relatively low minimum balance to earn that interest, and a low to average maintaining balance.
KEY TERMS TO KNOW
Interest rate determines how much your money grows while you keep it in deposit. Think of it as the bank pays you a percentage of your savings to keep the money in the bank.
Compound interest is an interest that you earn from your existing interest each. For example, you have a balance of ₱10,000.00 in your savings account with an interest rate of .25%, which means your savings account earns around ₱25.00 per month or per annum (depending on the bank). When you add around ₱5,000.00 every month to your savings for 10 years, you would have earned roughly ₱618,565.02 on top of your ₱610,000.00 savings.
That is if you continuously save your money and you don’t touch it for the rest of the 10 years.
Maintaining Balance is one of the most misunderstood concepts of basically any type of accounts in banks. It is the minimum amount you have to keep in your account to keep it or to “maintain” it in the bank. You have to make sure that your monthly (or daily for some banks) do not fall below this.
Minimum Balance to Earn Interest is the minimum amount you need in your account for it to start earning interest from the bank. This varies for each bank, so you have to check which one offers the lowest minimum balance to earn interest.
If your bank requires at least ₱10,000, you can only earn the interest after your account has accumulated ₱10,000. If your balance falls even ₱1.00 below the minimum, you will stop earning interest and will only start earning again if the balance increases to ₱10,000.
ADB or Average Daily Balance is almost the same as the maintaining balance of other banks; it’s main difference is based on your daily average for an entire month. For example, your bank’s ADB is ₱2,000.00. This doesn’t mean that you have to keep ₱2,000.00 in your account every month. It only means that the average amount in your account for the whole month is ₱2,000.00.
A 20% Withholding tax is required by the Bureau of Internal Revenue from any interest earned from a peso bank account.
So, depending on your needs and financial situation, there is no one bank that fits all. Others even suggest that you have one savings account in different banks, depending on what your savings goal is.
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