The concept of saving money for the future or for emergency purposes has always been practiced by many people all around the world ever since we can remember. People even created numerous ways to do it. Some use small piggy banks, and others participate in a paluwagan system, which is a group-saving method in the Philippines that works by rotating the pooled contribution of members weekly or monthly.
Although these are good ways to save, piggy banks and the paluwagan system are not always the most efficient way to grow your hard-earned cash. When the time comes that you finally want to start saving, you must do it right, and you must succeed in increasing your savings.
With all the banking options present, one might wonder what the best bank for savings accounts in the Philippines is. For those who want to be with the right bank, turn to Cebuana Lhuillier Bank. You can open a micro savings account with us today and start getting the best interest rates for saving accounts in the Philippines.
What Is a Savings Account?
A savings account is a deposit account held at banks or other financial institutions where you can store your money while earning interest over time. It is an effective way to increase your savings without risking too much or investing in things without the guarantee of getting anything back in return.
Opening a savings account is fairly easy nowadays. For instance, you can quickly open one using the eCebuana App provided by Cebuana Lhuillier. You just have to provide your personal details and a valid ID through the app. Afterward, you will be asked to answer the customer risk profiling and wait for an email to verify your account.
Some savings accounts require owners to maintain a minimum balance in exchange for not paying other fees to earn the highest published rate. But in some cases, financial institutions like Cebuana Lhuillier require no maintenance balance from their account owners. This is a big help for those who want to make sure their accounts will not close when situations forcing them to withdraw all their savings arise.
How Do Savings Accounts Work?
If it is your first time opening a savings account in the Philippines that earns interest rate, here are some things you can do using it:
When you open a savings account, you are given a card that you can use on automated teller machines. There are designated machines where you can deposit your money directly to your account without having to go to the actual bank.
On the other hand, if you want to deposit cash by transacting with a bank teller, you may also do that by filling out deposit slips and lining up during banking hours.
Using the same card, you can withdraw your money by going to an ATM. When you withdraw from a machine that’s provided by your bank or financial institution, you no longer have to pay for any withdrawal fee. However, when you use terminals provided by other banks, usually there is a minimal fee for withdrawing or checking your balance.
Our advanced technology now allows us to transfer money from one bank account to another using mobile banking applications. To do so, you simply have to enter the needed account details, input the amount you want to send, and enter a security code or verification pin.
Mobile banking apps like this also have more benefits. By using one, you can check your current balance without having to go to the bank to have your passbook updated. You can also see how much interest savings account in the Philippines has earned.
Determining the Interest Rates of Savings Accounts in the Philippines
Knowing the interest rates of banks in the Philippines will allow you to choose where to place your money strategically. Here are two of the most common interest rates:
Simple interest is the interest you get from your account’s original balance. This is calculated through multiplying your balance, the interest rate in decimal format, and the duration, whether monthly or yearly.
Banks and financial institutions have varying interest rates calculated in a set duration. For instance, Cebuana gives a 0.20% interest rate per annum to their savings account holders. This means, your money will grow every year depending on your balance. Moreover, Cebuana only requires account owners to have at least P500 to earn interest.
Compound interest calculates your account’s interest using your principal balance as well as any interest you’ve already incurred over a certain period of time. This type of interest rate grows your money quicker because the higher the number of compounding periods, the higher the amount of compound interest you will get.
Open the Best Saving Account in the Philippines With Cebuana
Cebuana Lhuillier offers micro savings accounts to provide an easier banking choice for every Filipino. Account holders have the freedom to deposit and withdraw anywhere and anytime they want by going to one of our 2,500 branches we have nationwide.
Additionally, Cebuana understands that saving money even at an early age is a big help in teaching financial responsibility to children. That is why Filipino citizens as young as seven years old are eligible to open a savings account or, as we call it, junior savings with us.
Whether you’re saving up for your future or for short-time goals like traveling outside the country, it is recommended to do it by opening the best savings account in the Philippines, like Cebuana’s micro savings account.
Here, you are confident your money is always incurring interest rates. Furthermore, in case of an emergency, you can easily withdraw all your savings without the fear of your account getting closed since there is no maintaining balance needed.
Are you ready to start saving? Get in touch with us now for more information about our micro savings account.