Savings Account Importance in the Philippines
It’s never too early or too late to open your first bank account. In the Philippines, retail customers have access to savings account provided by Philippine banks. Philippine savings accounts offer higher (but still negligible) interest rates compared to checking accounts. However, clients can liquidate their funds on demand. Savings accounts offer lower rates of return than time deposits since the interest rate of time deposits are fixed and the funds cannot be liquidated until maturity.
Nevertheless, a savings account can be quite advantageous because a client’s money can be kept safe from theft. What if the banks fail? In the Philippines all savings accounts are insured up to P500,000 by the PDIC (Philippine Deposit Insurance Corporation). PDIC is the governing body that insures all depositors in the Philippines. The normal interest rate for savings accounts in the Philippines is between 0.25% – 0.50% per year depending on the type of account opened.
What are the Advantages of Opening a Savings Account?
- Good foundation of wealth for the future
- Provides you with an emergency source of funds
- Positive contributor to credit standing
What are the requirements needed to secure a savings account in the Philippines?
- 2 Valid IDs with your name and your picture
- 2 Photocopies of your Valid IDs
- Billing Statement for address verification (Telephone bill, Credit Card bill, Electric bill, etc.)
- 2 copies of recent 1×1 ID picture
Acceptable IDs for opening an account in the Philippines are: Passport, PRC ID, NBI Clearance, Driver’s License, Police Clearance, Postal ID, SSS ID, OWWA ID, Alien Certification of Registration or Immigrant Certificate of Registration and other IDs issued by the Philippine Government.
Our future entirely depends on our stored resources. We can establish a concrete foundation for our future if we start saving, and the easiest way to initiate this is to put money away in a savings account. Open a savings account and start saving today!
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