How to Choose the Best Bank for your Savings Account


We want nothing else but the best place to keep our hard-earned money and savings accounts are a readily available solution to this. There are a lot of banks in the Philippines that offer savings accounts to cater to your needs and secure your cash.

This 2019, say goodbye to your piggy banks; and say hello to your passbook, ATM and online app.

Why choosing the best bank matters?

Choosing the best bank is important in deciding where to open a savings account. The bank sets the interest rates, minimum deposit amount, average daily balance and other features of your bank account. Requirements in opening also depend on the banking institution. Some require you to submit a lot of documents while other banks will just ask for two valid ID’s and application form.

What should I consider when choosing the bank?

Opening a savings account highly depends on your need. There is actually no right or wrong bank. The important thing is that the features of the account perfectly suits your lifestyle. Here are a few things to consider when choosing the bank for your savings account: 

1. Interest rate

The interest rate ranges from .10% to 1.75% and is usually calculated as compound interest by most banks in the country. The earnings from your savings are still subject to 20% withholding tax so it is best to consider the interest rates imposed on your account. Security Bank eSecure Online Savings Account lets you earn a maximum interest of 1.20% while a BPI Passbook Savings has a maximum interest of .25%.

2. Charges

Some people do not focus much on their saving’s earnings because what’s important is that they don’t need to pay for other fees. Falling below the average daily balance (ADB) means paying a fee from Php300-Php500 depending on the bank and the type of account you have. For instance, RCBC Super Earner Savings Account charges Php500 as fall-below fee while it RCBC Save account does not charge you anything.

Interbranch deposits and withdrawals may also affect your choice. Banks usually charge as low as Php50 for over-the-counter deposits to accounts in their provincial branches. If you are in Metro Manila and you want to deposit to an account in Visayas, expect to pay an additional amount.

3. Minimum initial deposit

The amount of initial deposit depends on how much available money you have. BPI Passbook Savings require Php10,000 initial deposit while BDO Passbook Savings Account entails Php5,000 with monthly average daily balance of Php10,000 to earn interest.

The minimum initial deposit depends on your reasons why you need to open a savings account. Are you opening one to accommodate payment transfers? If so, then choose an account that requires a low initial deposit. Use the extra money as capital for another online business instead.

4. Branches and ATM Location

Choose a bank that provides you with excellent customer service through the availability of ATMs and branches. Banks with ATMs that are always offline won't be a good help to businesses and the same is true with banks that rarely have machines in malls and groceries. BPI, for instance, has around 800 branches with approximately 3,000 ATMs in the country. BDO has more than 1,000 branches and over 3,000 ATMs. Metrobank has over 2,000 ATMs and 950 branches.

5. Maintaining balance

Maintaining balance is the minimum amount your bank account should have in a month. Most savings accounts that require maintaining balance lets you pay for charges once your money goes below the required amount. BPI has an Easy Saver account which does not require any maintaining amount while Eastwest Bank Basic Savings account needs you to leave Php100 to retain the account. Depending on your lifestyle and the bank account’s purpose, you may choose a savings account with low maintaining balance to refrain from paying fall-below charges.

6. Online services

Most banks offer the ease of making transactions with your savings account through online apps. Online fund transfers are very useful for those who make purchases on social media. Get your seller’s information, log on to your app, transfer the money and make a screenshot. The screenshot then serves as the proof of payment for your purchase.

With an online app, you also keep track of your account’s activities. You can see all amounts debited and credited to your account without the need to physically check via an automated teller machine. This saves you the time and effort while ensuring that you monitor your money real-time.

Having a bank account or a savings account helps you secure your money while allowing it to earn interest. Instead of carrying cash, ATM cards from these accounts are a safe way to make payments.