The Two Frugals

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Choosing the best savings account in the Philippines

Interests rate on bank savings accountI allot a portion of my money in savings account (SA’s) to serve as my emergency fund which will be used for emergency purposes only! Although the usual bank savings accounts have low interest rate (around 2-3% per annum) having a bank savings account is also a good way to secure your money, build your emergency fund and to stay liquid especially during emergencies when you need money immediately. I usually allot 30% of my savings to high interest savings bank account and the rest of my savings goes to equity fund. I am targeting to save at least 40% of my salary and include bond fund in my portfolio by next year.

I choose ChinaBank Money Plus Savings Account because its the closest bank near my work and offers good interest rates for savings account. I can drop there whenever I need to make a deposit and I can return to work immediately. The reason why I placed my emergency money there is for it to gain higher interest while I don’t need the money and I can withdraw it anytime.

You priority saving for emergency fund (provided that you dont have any bad debt) as soon as you can. There are banks that are offering low initial deposit or maintaining balance so there is no excuse for you to start saving money for your emergency fund. Even if you have low income, you can start small by allotting 5-10% of your salary to savings. What’s important is the discipline that you will ONLY going to use the money for emergency purposes only. Loss of a job, an illness or a major expense are some reasons or situations that you can use your emergency fund.

Remember to follow this rule Income – Savings = Expenses where you deduct a comfortable percentage of your salary and saving it for your emergency fund until you reach 6-8 months worth of expenses. Read my post about What is Emergency Fund to know more about what emergency fund is all about.

Today, banks offer a convenient way to save and to manage our hard-earned money. Some banks also offer savings account with higher or variable interests.

Below are some things to consider when choosing the best savings account for you. Before you apply for a savings account consider the following factors first:

  • Reputation of the bank
  • Initial Deposit Amount
  • Minimum Maintaining Balance
  • Savings Interest Rates
  • Service and Penalty Fees

Listed below are different savings accounts in the Philippines that hopefully can satisfy your needs.

Banks that offers Low Initial Deposit and Low Maintaining Balance

The following banks offers low initial deposit and low maintaining balance which are suited for those people who are starting to save money. You can immediately start to save money because these savings account has low initial deposit and you don’t have to worry in losing your money from penalties like not complying on the monthly maintaining balance required since these banks offers low maintain balance as well.

BDO Direct Deposit
Initial Deposit: 0 pesos
Monthly Maintaining Balance: 0 pesos
Minimum Balance to Earn Interest: 5,000 Pesos (0.2500% p.a.)

BPI Easy Saver Savings Account
Initial Deposit: 200 pesos
Monthly Maintaining Balance: 0 pesos
Minimum Balance to Earn Interest: 1,000 pesos (0.2500% p.a.)

East West Basic Savings Account
Initial Deposit: 100 pesos
Monthly Maintaining Balance: 100 pesos
Minimum Balance to Earn Interest: not specified, go directly to their bank to know more

Maybank Value Savings Account
Initial Deposit: 500 pesos
Monthly Maintaining Balance: 500 pesos
Minimum Balance to Earn Interest: 10,000 pesos (0.5000% p.a)

RCBC Basic Savings Account
Initial Deposit: 500 pesos
Monthly Maintaining Balance: 500 pesos
Minimum Balance to Earn Interest: 25,000 pesos (0.5000% p.a)

Banks that offers high interest rates

The following banks offers the high interest rates which are suited for those people who are saving for the long term and want to get the best high interest rates for their money. These bank accounts are the best savings account that you can find in the Philippines that offers interest rates from .2500% to .5000% per annum. Due to liquidity of these accounts they are suitable place to park your money if you aim to save money for your emergency fund.

BDO Optimum Savings Account
Initial Deposit: 30,000 pesos
Monthly Maintaining Balance: 30,000 pesos
Minimum Balance to Earn Interest: 30,000 pesos (0.5000%- 1.2500% p.a)
Allowed Withdrawal: 3x per month

BPI Maxi Saver Savings Account
Initial Deposit: 25,000 pesos
Monthly Maintaining Balance: 25,000 pesos
Minimum Balance to Earn Interest: 25,000 pesos (1.000% p.a with 0.5% p.a Bonus if no withdrawal within a month)

BPI Advance Savings Account
Initial Deposit: 100,000 pesos
Monthly Maintaining Balance: 100,000 pesos
Minimum Balance to Earn Interest: 100,000 pesos (1.2500%-1.5000% p.a)

ChinaBank Money Plus Savings Account
Initial Deposit: 20,000 pesos
Monthly Maintaining Balance: 20,000 pesos
Minimum Balance to Earn Interest: 20,000 pesos (0.5000% p.a)
Allowed Withdrawal: 2x per month

PNB Prime Deposit Savings Account
Initial Deposit: 50,000 pesos
Monthly Maintaining Balance: 50,000 pesos
Minimum Balance to Earn Interest: 50,000 pesos (.175% – 0.525% p.a)
Allowed Withdrawal: 2x per month

Security Bank Build-up Savings Account
Initial Deposit: 5,000 pesos
Monthly Maintaining Balance: 5,000 pesos
Minimum Balance to Earn Interest: 10,000 pesos (0.50% p.a)
Allowed Withdrawal: 3x per quarter

Time Deposit (TD’s) accounts are another banks product where you can put your money in and earn higher interest than most savings accounts. But since these accounts are time bound, you can’t withdraw your money in a certain period of time if you decide to withdraw your money earlier then you have to pay penalty fees.

Note: Actual rates may have change after writing this article. You can contact your preferred bank’s customer contact centers to know more about  their saving account or other products:

• BDO: 631-8000
• BPI: 891-0000
• Chinabank: 885-5555
• PNB: 573-8888
• Security Bank: 887-9188
• RCBC: 877-7222
• Maybank: 588-3888
• East West Bank: 888-1700

About the Author

I am currently employed in an IT Firm in Makati and trying to be a true frugal pinoy. Lately, I've been very amused on learning stocks and other investment products such as mutual funds, UITF and the like. I also started saving money for my emergency fund and my investment portfolio includes the following: mutual fund, forex and P2P lending.

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Comments

  1. Latricia October 11, 2016

    Intsghis like this liven things up around here.

    • Liza Chua January 14, 2017

      Thanks Latricia.
      We’re happy to be able to help.

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  1. Building your emergency fund | The Two Frugals

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