iMoney.my Learning Centre
  • All Categories

    All Categories

    Close
    • Latest Articles
    • Go to iMoney.ph
    • Banks
    • Broadband
    • Car Insurance
    • Car Loan
    • Careers
    • Credit Card
    • Credit Score
    • Debit Card
    • Debt
    • Education
    • Employment
    • Entrepreneurship
    • Fame and Fortune
    • Finance Quotes
    • General Money Saving
    • Health Insurance
    • Home Loan
    • Infographic
    • Insurance
    • Investment
    • Lifestyle
    • Money Ideas
    • Money Management
    • Most Popular Articles
    • News
    • Online Business
    • Online Security
    • Personal Accident Insurance
    • Personal Loan
    • Retirement
    • Review
    • Savings Account
    • Sponsored
    • Taxes
    • Time Deposit
    • Travel and Transport
    • Travel Insurance
  • Credit Card
  • Money Management
  • Lifestyle
  • Money Ideas
  • Guides
  • Go to iMoney.ph

Savings Account in the Philippines – the Basics

March 5, 2013
Savings Account
Share this!
  • Share
  • Tweet
  • Email
  • WhatsApp

Written by imoney

piggy bankBanks in the Philippines offer consumers multiple options when it comes to saving money for a raint day, and a savings account is one of them. What exactly is a savings account and how do people earn money from it?

Savings Account

Savings account is a type of bank account that offers consumers the protection of their funds while earning a low, stable interest rate usually between 0.5% to 1% annually. The Philippines National Bank (PNB) for example offers 0.5% interest rate on peso-denominated savings accounts and 0.75% for foreign currency-denominated accounts.

The money in savings accounts is highly liquid, meaning it can be withdrawn anytime it is needed. Many people find savings accounts unprofitable due to its low interest rate as compared to time deposit accounts where much higher rates of interest can be earned. However, money saved in a time deposit account, which means you cannot withdraw your time deposit savings until it matures (usually within 1, 3, 6, or 12 months). Early withdrawals result in you forfeiting interest earned during the period.

Benefits of a Savings Account

The benefits of maintaining a savings account are manifold. Here are some below.

  • Protection. Your money is safe-kept in the bank and is protected under the law. All Philippine banks are members of Philippine Deposit Insurance Corporation (PDIC) and savings deposits are insured and secured up to a maximum amount of PHP500,000 per person. In the event of a bank’s failure, the PDIC will pay depositors their savings amount subject to the maximum amount.
  • Liquidity. The money in your savings account is very liquid, which means it is easily withdrawn as cash without any penalty. Liquidity is useful especially in times of emergencies when extra funds are needed to make up for shortfalls in cash.
  • Convenience. Your savings account can be used to electronically transfer funds to friends, and can be used as a payroll account by companies. You can withdraw cash anytime, using ATM machines around the country.
  • Earn Some Interest. Your savings account earns interest although the rate is usually lower than many other investment types. Still, it sure beats the interest (zero!) earned by hiding your cash under the pillow.

 

Opening a savings account is easy. Find out more about savings account in the Philippines by checking out iMoney’s upcoming savings account comparison tool!

Share this article

Share this!
  • Share
  • Tweet
  • Email
  • WhatsApp

Related Articles:

  • Beginner's Guide To Save Money Wisely For Filipinos
    Beginner's Guide To Save Money Wisely For Filipinos
  • What's Your Net Worth?
    What's Your Net Worth?
  • 6 Ways To Start Paying Yourself First
    6 Ways To Start Paying Yourself First
  • The 8 Types Of Income You Should Know To Achieve Financial Freedom
    The 8 Types Of Income You Should Know To Achieve Financial…

Leave your comment

Exclusive Interviews
How Do You Design Your Success Story: According to Francis Kong (Part 3)

How Do You Design Your Success Story: According to Francis Kong (Part 3)

How To Recognize Your Potential For Success: According to Francis Kong (Part 2)

How To Recognize Your Potential For Success: According to Francis Kong (Part 2)

How Do You Climb The Mountain Called Success: According to Francis Kong (Part 1)

How Do You Climb The Mountain Called Success: According to Francis Kong (Part 1)

Compare and apply with iMoney
Credit Card Car Loan Housing Loan Personal Loan
Get money saving tips!

We send you tips & deals that will save you time and money.

iMoney.myLearning Centre
Back to top

iMoney.ph is a leading financial comparison website and a trusted personal finance authority to help you make the most out of your money.

  • Facebook
  • Twitter
  • Instagram
  • Youtube
  • Go to iMoney.ph
  • Privacy Policy
  • Disclaimer
  • Corporate

© 2023 iMoney.ph