The Best Savings Account in the Philippines 2022

Many banks in the country offer savings accounts. But do you know which are the best savings account in the Philippines?

After all, you don’t want to lose out on earning passive money by not keeping a bank account active.

In this post, we will demonstrate why a high-yield savings account is a worthwhile investment.

What is a Savings Account?

A savings account is a basic account provided by banks, credit unions, and other financial organizations. It’s a place where you may deposit money to be kept secure and withdraw it at any moment.

It is also covered by the Philippine Deposit Insurance Corporation (PDIC) up to 500,000 pesos and earns a moderate interest rate over time.

What is the Purpose of a Savings Account in the Philippines?

A savings account in the Philippines is useful for extra cash that you intend to spend right away, such as buying groceries or other necessities. It can also be used to start an emergency fund. It is the simplest form of passive income and investment because it earns interest.

It’s also a better option than piggy banks, where your money doesn’t earn interest and is susceptible to wear and tear. Also, very old bills can no longer be exchanged. Furthermore, the bank provides an ATM card that you can carry with you in case you need to withdraw funds rather than always carrying cash.

The disadvantage is that you may be tempted to spend your savings because they are easily accessible. Furthermore, the interest rate is so low that whatever you earn is insufficient to offset inflation. Your money’s value depreciates over time.

It is not a good way to save money in the long run or to preserve the value of your money over time. This is due to the fact that there are other income-generating options available to you, such as index funds, UITFs, and mutual funds.

Then there are savings accounts that are solely for children. They provide comparable rates and may also include perks, insurance, or educational benefits.

Savings accounts may include one or more of the following:

  • ATM debit cards
  • passbook
  • a credit card bundle or a secured credit card
  • attached life insurance

One of the lesser-known uses of a savings account is as a settlement account for a variety of purposes.

For example, you can designate your account to receive Pag-IBIG MP2 annual dividend payments, to invest in the stock market through any stock brokers in the Philippines, to invest in retail treasury bonds online, to send or receive remittances abroad, and so on.

Benefits of Having a Savings Account in the Philippines

Depositors benefit greatly from savings accounts in the Philippines. Its advantages include:

  • Initial balance is low. You do not need to put up millions of pesos to open an account. Banks will usually allow you to begin with at least ₱500. Always double-check the requirements ahead of time.
  • Low maintaining balance. Depending on where you deposited, you may be allowed to keep a small balance without incurring any fees.
  • Requires low maintaining balance to earn interest. When you reach or maintain a certain level of deposit, you earn interest. What makes this so appealing is that the interest can be credited every three months. As a result, your money is not sitting idle. Its worth is increasing.
  • It is relatively simple to open an account. Banks will typically provide you with a set of instructions and a list of documents to prepare, all of which are simple to obtain.
  • Safekeeping. Another advantage of having a savings account is that the bank safeguards your funds. It does this by honoring your deposit and guaranteeing that you get it, along with any profits, whenever you need it.
  • Exchange. When you save money in a piggy bank for an extended period of time, banknotes eventually become retired and are no longer recognized in payment for goods and services. The bank solves this difficulty by only giving you current banknotes issued by the Bangko Sentral ng Pilipinas.
  • Liquid. Bank accounts are liquid in the sense that you may withdraw funds and receive them practically instantly.
  • Convenient. Opening an account, depositing funds, and withdrawing funds are all made simple by the availability of service by email, phone, or online.
  • Interest income. Interest is earned on your money. It may seem little for some, but it earns genuine interest, which is not feasible when cash is stacked in a physical location.
  • Insured money. A deposit of half a million dollars is protected thanks to the Philippine Deposit Insurance Company. You can still get your money if and when the bank fails.
  • Financial goals. It might serve as a financial vehicle for your financial objectives. It’s an excellent strategy to save money, particularly if you’re going to make a large purchase.
  • Bank services. You may be granted access to more valuable services and incentives if you create an account. For example, you may use your ATM card to make purchases, schedule online trips, and pay for groceries without using cash.

Disadvantages of a Savings Account in the Philippines

Opening a savings account in the Philippines has several disadvantages. These disadvantages include the following:

  • Its value depreciates over time even if not withdrawn. Because the interest is so low, it cannot keep up with inflation.
  • Number of withdrawals may be limited within a given frame.
  • Fees for financial transfers to other bank accounts, using a non-bank ATM, obtaining your money over the counter, and so on must be considered.
  • Banks demand a minimum balance to be maintained.

Features of a Savings Account

A typical savings account in the Philippines includes:

  • Interest. It earns interest, which is typically paid every quarter.
  • Initial deposit. This is the minimum requirement for opening an account. There are certain accounts that do not need an initial deposit at all.
  • Maintaining balance. The account balance that must be maintained. Fees may be imposed if the balance falls below that amount.
  • Required deposit to earn interest. Some banks and financial instutions in the Philippines only pay interest if you meet the required level of deposit.
  • Withholding tax. The interest you earn is taxed at 20%, however some accounts waive it if certain requirements are satisfied.

Fees of Savings Account

In addition, the following situations may result in fees:

  • withdrawing monies from other branches or banks, over the counter (for ATM accounts), or within a certain time frame (like the first 30 days)
  • depositing in another branch
  • request of replacement for lost passbook or atm card.
  • the balance falls below the required maintaining balance
  • inactive account

PDIC Insurance in the Philippines

Savings accounts in the Philippines are insured. That is why they are regarded as risk-free. Deposits and accounts worth up to 500,000 pesos are safeguarded against any crisis that may strike the bank with whom you do business.

So, how does PDIC safeguard your funds? When a bank declares bankruptcy, the PDIC steps in to ensure that depositors’ funds are returned. As long as your total deposits and accounts are equal to or less than half a million pesos, you may rest certain that your money is safe.

What accounts are insured?

Savings, special savings, demand/checking, negotiable order of withdrawal, and negotiable/non-negotiable certificate of time deposits are all guaranteed by the PDIC. The insured sum is expanded to a single account, a joint account, and an account in trust for another person (ITF). Accounts may be opened in either pesos or dollars.

All of the calculations you see here are rough estimations. The distinction is in how often interest is credited to the account and subsequently compounded.

Best High-Interest Savings Accounts in the Philippines 2022

The following are the best high-yield savings accounts in the Philippines for 2022, with the most recent annual interest rates ordered from highest to lowest. Rates are subject to change without notice, so please check with your bank for the most up-to-date information.

AccountInterest
Tonik Group Stash4.50%
ING Savings Account*4.00%
GSave by CIMB Phlippines4.00%
Citibank Peso Bonus Saver Account1.66%
Security Bank eSecure Savings Account1.20%
Sterling Bank of Asia Bayani OFW Savings Account1.00%
Citibank Peso High Rate Saver0.85%
BDO Optimum Savings Account0.75%
Citibank e-Savings Account0.75%
RCBC Dragon Peso Savings0.5625%
BPI Advance Savings account with Passbook0.50%
BPI Family Savings Bank Advance Savings Account with Passbook0.50%
PNB Top Saver Account0.50%
Security Bank Premium Build Up Savings Account0.50%

A summary of all the products discussed in this article is provided below. You will also see a table of estimated interest over time. Please keep in mind that these are only estimates and that actual results will vary depending on the frequency with which interest is credited to the account, among other factors.

You can go to the discussion point by clicking on each one, and please check the link for more up-to-date bank information and rates.

Tonik Group Stash

Initial deposit: Any amount
Balance to earn interest: Any amount
Interest: 4.50%

Tonik, a Singapore-based digital-only bank, is making its debut by offering a high 4.50 percent interest on Group Stash (owner and at least two members).

A Stash is a digital wallet in an account that is allocated for a particular financial reason, such as an emergency, vacation, or other special occasions. A Group Stash is a place where one may invite others to save money.

A Stash (and, of course, Group Stash) is a high-yielding saving account that permits numerous users. The interest rate varies, and the deposit will earn the new rate going forward.

It is important to understand that the owner owns the total amount in a Group Stash. Members may only contribute to the funds.

Here’s how much a million pesos will be worth in ten years.

YearDepositInterestBalance
11,000,00036,0001,036,000
237,2961,073,296
338,6391,111,935
440,0301,151,964
541,4711,193,435
642,9641,236,399
744,5101,280,909
846,1131,327,022
947,7731,374,795
1049,4931,424,287
Total1,000,000424,2871,424,287

CIMB Bank GSave

CIMB Bank’s GSave account now yields 4% per year on a maximum deposit of ‎₱100,000. At the end of the month, the interest is credited to the account. You must be at least 18 years old, have a valid government-issued identity card, and be a confirmed GCash user.

Another benefit is that interest may be earned on any amount. There is no need for an initial deposit or a minimum balance to be maintained.

The account, however, is only valid for one year. If you want to extend the validity period and deposit more than the limit amount, you must download the CIMB Bank app and connect your GSave account.

There is also free life insurance amounting to 1x the average daily balance of the previous three months or 1x the last reported balance before the death date. The insurance policy covers up to a million pesos.

Initial deposit: Any amount
Balance to earn interest: Any amount
Interest: 4%

The table below illustrates how your ₱100,000 will grow over the years.

YearDepositInterestBalance
1100,0003,200103,200
23,302106,502
33,408109,910
43,517113,428
53,630117,057
63,746120,803
73,866124,669
83,989128,658
94,117132,775
104,249137,024
Total100,00037,024137,024

CITIBANK Peso Bonus Saver Account

The CITIBANK Peso Bonus Saver Account is an interest-bearing bank account that rewards you for saving more. That’s a better technique to promote saving. You may also withdraw free of charge and unlimited times.

Initial deposit: ₱50,000
Balance to earn interest: ₱50,000
Interest: 0.70% to 1.66%

The base interest rate is 0.70 percent for a required balance of ₱50,000, and you can enjoy an incremental increase in interest if you add P20,000 each month for a year.

Here’s how your money grows when you save for the maximum deposit at the beginning of the account.

YearDepositInterestBalance
11,240,00016,4671,256,467
216,6861,273,153
316,9071,290,061
417,1321,307,193
517,3601,324,552
617,5901,342,142
717,8241,359,966
818,0601,378,026
918,3001,396,326
1018,5431,414,870
Total1,240,000174,8701,414,870

Security Bank eSecure Savings Account

The eSecure Savings Account from Security Bank Corporation offers a variable interest rate based on your balance. The more you save, the more interest you will earn.

Interest: 0.50% to 1.20%
Initial deposit: P500
Balance to earn interest: P5,000

Furthermore, the account requires only P500 as an initial deposit, with P5,000 already earning a starting interest rate of 0.50 percent. The only disadvantage is that you can only make one withdrawal per month before your interest rate drops to 0.10 percent. Here’s how the tiered interest system works.

Here is how your money will grow over time.

YearDepositInterestBalance
11,000,0009,6001,009,600
29,6921,019,292
39,7851,029,077
49,8791,038,957
59,9741,048,930
610,0701,059,000
710,1661,069,167
810,2641,079,431
910,3631,089,793
1010,4621,100,255
Total1,000,000100,2551,100,255

Sterling Bank of Asia Bayani OFW Savings

Sterling Bank of Asia Bayani OFW Savings is a kind of account designed specifically for Filipinos working overseas. The bank’s objective, according to the bank, is to serve as a holding account for remittances.

There is no need for a minimum average daily balance as long as remittances are done annually. However, in order to collect interest, the account must have a balance of ₱2,000. It features a pretty high-interest rate, no initial deposit needed, and comes with an ATM card.

Interest: 1.00%
Initial deposit: Not required
Balance to earn interest: P2,000

Here’s what your money looks like when you save ₱2,000 every month.

YearSavingsBalance
124,00024,192
248,00048,578
372,00073,158
496,00097,935
5120,000122,911
6144,000148,086
7168,000173,463
8192,000199,043
9216,000224,827
10240,000250,818

Citibank Peso High Rate Saver Account

Citibank’s Peso High Rate Saver Account offers market-leading interest rates ranging from 0.70 percent to 0.85 percent. The more money you keep in your account, the more interest you’ll get.

There are no set terms to worry about, and you can check your balance at over 13,000 ATMs globally. You may even manage your account online.

Interest: 0.85%
Initial deposit: (not mentioned)
Balance to earn interest: P100,000

You are entitled to two free withdrawals per month with your account. Non-over-the-counter withdrawals are charged a P20 fee, while over-the-counter withdrawals are charged a P30 fee.

BDO Optimum Savings Account

BDO Unibank Inc. offers the Optimum Savings Account, which rewards depositors with increased interest rates as they deposit more money. The account allows for free withdrawals up to three times each month.

Interest: 0.75%
Initial deposit: P30,000
Balance to earn interest: P30,000

The following charges are imposed:

  • P300 if the account is closed within the first 30 days.
  • P300 for failing to maintain a minimum average daily balance (MADB) of P300.
  • P30 for accounts that have been inactive for five years.
  • P110 for more than three withdrawals in a month.
MADBInterest
30,000 – 99,9990.250%
100,000 – 499,9990.375%
500,000 – 999,9990.500%
1M – 4.999M0.625%
5M up0.750%

Citibank e-Saving Account

The Citibank e-Saving Account combines a high-interest rate with the ease of managing your account through an online portal. You are also entitled to free and unlimited fund transfers to other users’ Citibank CASA accounts.

Interest: 0.75%
Initial deposit: (not mentioned)
Balance to earn interest: P100,000

Take advantage of two free withdrawals per month. If you make more than three withdrawals, you will be charged a fee of P20 for non-over-the-counter withdrawals and P30 for over-the-counter withdrawals.

See below how your money will grow in this savings account within ten years.

YearSavingsBalance
1100,000100,600
2200,000201,804
3300,000303,614
4400,000406,036
5500,000509,072
6600,000612,727
7700,000717,003
8800,000821,905
9900,000927,437
101,000,0001,033,601

RCBC Dragon Peso Savings Account

Rizal Commercial Banking Corporation provides the Dragon Peso Savings Account to individuals seeking above-average interest rates and no withdrawal limit. It comes with a Mastercard-enabled MyDebit Card for online and in-store purchases.

An online account is also set up for ease of transactions and account management. There is a 500 penalty for closing the account within the first 30 days, and another 500 penalty for falling below the monthly average daily balance. For more information on fees and charges, you can visit their website.

Interest: 0.150% to 0.56%
Initial deposit: 25,000
Balance to earn interest: P25,000

AmountInterest
₱25,000 to < ₱50,0000.15%
₱50,000 to < ₱500,0000.25%
₱500,000 to < ₱1,000,0000.28%
₱1,000,000 to < ₱2,500,0000.38%
₱2,500,000 to < ₱5,000,0000.43%
₱5,000,000 to < ₱7,500,0000.48%
₱7,500,000 to < ₱10,000,0000.53%
₱10,000,000 and above0.56%

BPI Advance Savings Account with Passbook

The BPI Advance Savings Account with Passbook offers a faster return on your deposit and a higher interest rate than a standard savings account. You can also earn money in advance for every deposit and manage your savings account easily with their online banking system.

Interest: 0.50%
Initial deposit: P100,000
Balance to earn interest: P100,000

YearSavingsBalance
1100,000100,400
2200,000201,202
3300,000302,406
4400,000404,016
5500,000506,032
6600,000608,456
7700,000711,290
8800,000814,535
9900,000918,193
101,000,0001,022,266

BPI Family Savings Bank Advance Savings Account with Passbook

The Bank of the Philippine Islands (BPI) Family Savings Bank Advance Savings Account with Passbook allows you to earn higher interest rates on your deposits. You can save your money and use the interest later.

It pays a higher interest rate than a regular savings account, and the interest rate increases to 1.50 percent when the balance reaches a million pesos or more.

Interest: 0.50%
Initial deposit: P100,000
Balance to earn interest: P100,000

The maintaining balance is P100,000. If the amount goes below that level, the account does not receive any interest. It is also handy to check the account using their internet banking platform.

Below is an estimate on how much your money will grow in 10 years.

YearSavingsBalance
1100,000100,400
2200,000201,202
3300,000302,406
4400,000404,016
5500,000506,032
6600,000608,456
7700,000711,290
8800,000814,535
9900,000918,193
101,000,0001,022,266

PNB Top Saver Account

Another account with a tiered interest structure is the Philippine National Bank’s Top Saver Account. The more money you save, the more interest the bank will pay you. Depositors can obtain either a PNB-PAL Mabuhay Miles debit card or a passbook from the account. The debit card can be used for online and in-store purchases.

Additionally, opening an savings account in the Philippines with PNB Top Saver Account is convenient. You can download their mobile app and register for an account online using a debit card. On the other hand, if you wish to obtain a passbook, you must visit any branch.

Interest: 0.25% to 0.50%
Initial deposit: P30,000
Balance to earn interest: (not mentioned)

Security Bank Premium Build Up Savings Account

The Security Bank Corporation’s Premium Build Up Savings Account is designed for individuals who do not want to be locked in but still want to earn a higher rate of interest than traditional savings accounts. The initial deposit is P50,000 with a 0.50 percent interest rate.

Interest: 0.50%
Initial deposit: P50,000
Balance to earn interest: P50,000

However, you are only permitted three withdrawals per quarter. This account is ideal for people who want to grow their money quickly while also saving for the long term.

YearSavingsBalance
150,00050,200
2100,000100,601
3150,000151,203
4200,000202,008
5250,000253,016
6300,000304,228
7350,000355,645
8400,000407,268
9450,000459,097
10500,000511,133

How to open a savings account in the Philippines

How do you open a savings account in the Philippines? Here are a few steps that you can follow.

  • Research. So you might want to get started and open a bank account for yourself. The first thing you’ll do is research it. You’ve already done that by reading this article, and you can certainly do more reading in other sources such as the PDIC and the Bangko Sentral ng Pilipinas.
  • Choose a bank. Make a decision on which bank you want to deposit your money with. It should ideally be a stable institution with a long history of stability.
  • Decide which product. Once you’ve decided on a bank, look into the deposits that best suit your needs. Do you require an ATM card? Would you pay with cash or a credit card accepted in online stores? Is passbook a better option for you?
  • Prepare the documents needed. You can conduct research on the papers that must be completed. You can look up the bank’s website or go in person. They would give you a list of requirements, such as a required initial deposit, identification cards, proof of billing, and other documents.
  • Open a savings account. Open an account at the bank of your choice. In most cases, the application can be completed in a single visit. If you require one, see if you can open an online account.
  • Wait for your ATM Card or Passbook. Some banks would immediately issue an ATM card or passbook. Others may request that you return after a certain period of time.
  • Use the services and enjoy. You can now use the ATM card at nearby machines or the passbook at a branch that is convenient for you.

What to look for in a bank in the Philippines?

What qualities should you look for in a bank? When opening an account, it is critical to select a reputable institution. Here are some of the characteristics that an ideal bank should have if you want to open a savings account in the Philippines.

  • Bank History. Naturally, we want to give new banks a chance. Those with a long track record, on the other hand, have an advantage in terms of credibility.
  • Financial products. Examine the financial products they provide. Because not all products, such as ATMs, passbooks, or checking accounts, are created equal, learning about what they offer is critical.
  • Location. Select a bank with a branch near you. You never know when you’ll need their services or make a transaction, so a bank that is easily accessible is ideal.
  • Services. You might want to find out if they have online access, how many ATMs they have and where they are located, and what other services they offer.
  • Customer support. Choosing a bank that puts its customers first and is concerned about their welfare is a wise decision.
  • Benefits and perks. Do you want to make a purchase over the internet? Would you like to use an ATM card that gives you points for every purchase you make? What interest rate do they offer to their depositors? Examine the benefits and perks of the account you’ve selected.