If you want to save money in a secure location such as a bank then you can consider savings accounts, they offer a higher interest rate than for example a cash card account and provide you full access to your money through ATM's across the country.
They also give you a guaranteed return on your money (interest payment) each month. In the Philippines there are different types of savings accounts available such
You can deposit cash into savings accounts whenever you want by either using their ATM machines or going into the bank and speaking with the teller. Savings accounts are great because they pay you interest but you don't need to lock your money into any long term contracts, you are free to withdraw and deposit money from the account whenever you want without penalties giving your funds complete liquidity.
The interest rate in a savings account is not as high as other products such as a time deposit. With a time deposit you give the bank your money for an agreed upon term and in return they give you a guaranteed interest rate which is usually higher than savings accounts but you cannot withdraw your money from the bank until the term maturity date which depending on your agreement can be up to 5 years.
Before you start to compare savings accounts
When you’re looking for the best savings account the interest rate is a major factor in the decision, but there are other things to think about too.
How much can you save? Think about how much you can put into the savings account, usually banks have a minimum amount before they will pay any interest to the account holder, the amount varies from bank to bank but typically the minimum deposit to receive interest is 10,000 pesos. Compare savings accounts from banks that will pay the best interest rate for the amount you will be saving so if you plan on depositing 5,000 pesos you should look for an account that would pay the best interest rate for this amount.
How long can you put money away for? If you plan on putting money away for a long time e.g. 6 months or more and you’re confident you won’t need the cash then a savings account might not be your best choice for growing your savings, try looking at time deposit options as these will usually pay the highest return but your money will no longer be available to withdraw if you choose this option. One popular option is to put a percentage of your savings into a long term investment like time deposits and put the rest of your savings into a savings account so that your money remains liquid.
The banks reputation. It is much more convenient and can be financially more rewarding if you keep your money with one bank, but on the flip side this also puts you at greater risk of losing your savings should the bank go bankrupt so it’s very important to choose the right bank with a strong reputation and of solid standing. The PDIC coverage is 500,000 pesos for every depositor per bank this means during a financial crisis should a bank go bankrupt, the most you will be able to claim back from that bank is 500,000 pesos. Spreading out your savings across several providers can provide more security.
Find the best savings accounts. Use the money monster comparison website to compare the best savings accounts in the Philippines. We search on a daily basis interest rates from all the banks in the Philippines to find you the best deals. We’re a completely free & independent service that helps Filipinos find and compare the best financial products such as credit cards, housing loan to life and health insurance.