We have many things we want in life—from simple things like owning a gadget to lifelong goals such as having our own family. Everything we do to make these happen will cost money, and we may not be able to pay for all those expenses in one go. Along the way, there would also be unexpected fees we have to pay.
It is challenging, but there is a way to prepare for it in the Philippines: by opening a savings account. When you have excess money and nothing to pay for yet, the best thing to do is to save it for your future. By doing so, you can prepare for emergencies and take a step closer toward achieving your dreams.
Start a savings account today with reliable companies like Cebuana Lhuillier. We are committed to being your trusted partner in your journey toward financial stability.
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In the Philippines, a popular way of saving cash is by placing them in bank deposit accounts. It is where you can keep your excess money to effectively save it for the future. What is the best type of savings account to open? It’s one that you can afford and fits your needs. We have a few questions you should ask yourself before deciding on a type of account and the bank. Here they are:
Is the Interest Rate Competitive?
It sounds like a foreign concept to gain money just by keeping it, but this truly happens in banks. This benefit that comes with savings accounts in the Philippines is called an interest rate. It is the percentage a bank gives you as you maintain a certain amount in your account. You can think of the money you receive as an incentive for helping them.
What Is the Minimum Balance Requirement?
Many banks require you to retain an amount in your account. Some expect you to keep 3,000PHP untouched in your savings, while others may be as low as 100PHP or none. When you go below that amount, the bank will charge you a fee for not maintaining it. These are usually discussed when applying for an account or may be written in the contract you sign, so listen and read the document carefully.
How Much Are the Transaction Fees?
Most financial institutions offer their services for free if you transact through their mobile and online platforms as well as affiliated ATMs. However, you should be aware of interbank transfer fees, which vary depending on the platform and the banks involved. You should also do your research on fees involving checking your balance and making withdrawals using ATMs that are not affiliated with your institution.
Prepare Identification Cards and Other Important Documents
Be ready to present documents that will prove your identity, address, and proof of income. Government-issued IDs like passports, driver’s license, or UMID are some of the most trusted identification cards you can present.
If you’re below 18, you can still apply by bringing your birth certificate and school ID. Sometimes, you may be required to provide a certificate of enrollment, too, so request one from your school ahead. Also, remind your parent to prepare their valid ID and proof of address because you might need them when you open a savings account in the Philippines.
Additional requirements may include an ID picture, usually 1”x1” or 2”x2”, and your TIN or SSS information. Do your research and prepare everything before heading to the financial institution to avoid any delays.
Visit the Financial Institution and Fill Out an Application Form
With deposit accounts, you can relax knowing that your money is saved properly and safely for your future needs. Once you have chosen the best financial institution, head to their closest branch to open a savings account.
When you arrive at the branch, inform their personnel that you want to open a savings account. They will assist and hand you an application form that you have to fill out. The information needed usually includes your full name, birth date, birthplace, marital status, and your mother’s maiden name.
If you are having trouble understanding some items in the form, approach the staff so they can help you fill it out with the correct details.
Put Funds Into Your Savings Account
Every institution requires an initial deposit amount when you open an account. Learn how much that costs by searching for it on their website or asking their personnel before applying. If you’re opening an account at Cebuana Lhuillier, you only need 50PHP as your initial balance. You can deposit larger amounts to reach the minimum balance to earn interest, but don’t forget to consider your monthly budget before placing a large sum.
After applying, you can continue to deposit money into your account to grow your savings and earn higher interest returns. You can keep increasing your amount by depositing cash in person or having some transferred to your account. When you need the money, you can use your card in an ATM or make a personal withdrawal at the bank. Don’t worry about often transacting as the bank keep your record updated.
Download the App for Convenience
Congratulations! You’re now a savings account holder. You can already manage your funds, deposit money, and make withdrawals when necessary. If you’re looking for a convenient way to monitor the funds and transactions in your account, many banks and other financial institutions have mobile applications you can download.
Some additional features of mobile applications are money transfers, bills payments, and SIM card loading. Explore the app.
Opening a savings account in the Philippines is easy, especially with a step-by-step guide like this. So, start saving money today so that you have funds to support yourself in the future.