High-yield Savings Accounts In The Philippines

High-yield Savings Accounts in the Philippines. What are high-yield savings accounts, which banks offer them, and what the interest rates are.a
Previously we've looked at savings accounts and time deposits. Savings accounts offer liquidity (being able to access your money anytime) while time deposits boast superior returns.

Everyone can use those higher returns, but not all of us are ready to lock away our money for various reasons. This might be our emergency fund, in which case we can't comfortably say no emergency will come up within the next year. Or even the next 3 months for that matter. That's just how emergencies are.

But thankfully, some banks offer us an alternative: High-yield savings accounts. And in today's article we'll go through some of the high-yield savings accounts offered by the largest banks in the Philippines

But first, just what are high-yield savings accounts?

They're a hybrid or combination of savings accounts and time deposits. The initial deposit, maintaining balance, as well as the interest rate is higher than savings accounts but lower than time deposits. And you may withdraw your money anytime without penalty (just like a savings account) but if you withdraw more than is allowed (usually 2-3 withdrawals per month) you won't earn interest on your money (similar to time deposits).

(By the way, if you're looking to earn more from your savings, read my primer on investing in stocks and UITFs/Mutual Funds. Or better yet, check my map to achieving financial freedom.)

Banks offering high-yield savings accounts
(Last updated on 06/01/2013)

BDO
Product Name: Optimum Savings
Maintaining Balance: 30,000
Interest: 0.5% - 1%
From their website:

Amount                                Interest
Php 30,000.00- below Php50,000. 0.5000%
Php 50,000.00- below Php100,000 0.7500%
Php 100,000.00- below Php250,000 0.8750%
Php 250,000.00- below Php500,000 0.8750%
Php 500,000.00- below Php1,000,000 1.0000%
Php 1,000,000.00- below Php5,000,000 1.1250%


BPI
Product  Name: Maxi-saver (ATM or Passbook)
Maintaining Balance: 50,000 (ATM) or 75,000 (Passbook)
Interest: 0.625% to 1% (plus 0.5% bonus per annum if no withdrawal within a month)

From their website:

with ATM
Less than Php 50,000
N.A.
50,000 - 299,999
0.625%
300,000 - 499,999
0.750%
500,000 -999,999
0.875%
1M and up
1.000%
With 0.5% BONUS p.a. if no withdrawal within a month

with Passbook
75,000 - 299,999
0.625%
300,000 - 499,999
0.750%
500,000 - 999,999
0.875%
1M and up
1.000%
With 0.5% BONUS p.a. if no withdrawal within a month


BPI Family Bank
Product Name: Maxi-saver (ATM or Passbook)
Maintaining Balance: 25,000 (ATM) or 50,000 (Passbook)
Interest: 0.875% to 1.250% (plus 0.5% bonus per annum if no withdrawal within a month)

From their website:

with ATM
25,000 - 299,999
0.875%
300,000 - 499,999
1.000%
500,000 - 999,999
1.125%
1M and up
1.250%
With 0.5% BONUS p.a. if no withdrawal within a month

with Passbook

Less than Php 50,000
N.A.
50,000 - 299,999
0.875%
300,000 - 499,999
1.000%
500,000 - 999,999
1.125%
1M and up
1.250%
With 0.5% BONUS p.a. if no withdrawal within a month


BPI Direct Savings Bank
BPI Direct Savings Bank is an online bank. You can open an account online, but you'd still have to transact through a BPI branch. It's easier if you already have a BPI account and it's enrolled in BPI express online.

Product Name: Maxi-Saver
Maintaining Balance: 25,000
Interest: 1% to 1.375% (plus 0.5% bonus per annum if no withdrawal within a month)
From their website:

Less than Php 25,000
N.A.
25,000 - 299,999
1.000%
300,000 - 499,999
1.125%
500,000 - 999,999
1.250%
1M and up
1.375%
With 0.5% p.a. BONUS if no withdrawal within a month


CHINA Bank
Product name: MoneyPlus Savings
Maintaining Balance: 20,000
Interest: 0.5% to 1.5% 

From their website:

Monthly ADB Range in Peso Interest Rate 
20,000 – 99,999.99 0.500%
100,000 – 499,999.99 0.625%
500,000 – 999,999.99 0.750%
1,000,000 – 4,999,999.99 1.250%
5,000,000 & Up 1.500%

The regular savings rate shall be applied for accounts with more than 2 withdrawals per month 


RCBC
Product name: Dragon Peso Savings Account (ATM or Passbook)
Maintaining Balance: 25,000 (ATM or passbook)
Interest: 0.375% to 1%

From their website:

25,000 to < 100,000 0.375%
100,000 to < 500,000 0.50%
500,000 to < 1,000,000 0.625%
1,000,000 to < 2,500,000 0.75%
2,500,000 to < 5,000,000 0.875%
5,000,000 and above 1.00%


Security Bank
Product Name: Build-up Savings
Maintaining Balance: 5,000
Interest: 1.25%

From their website:

Build-up Savings Allows you to deposit anytime and gives you high interest rate yet offers the security of having your money available for unplanned needs. You can withdraw up to 3 times in a quarter. 1.25% per annum  P5,000.00


Landbank
Product Name:
Maintaining Balance: 20,000
Interest: Variable (but not specified)

From their website:

Minimum Deposit Requirement
P 20,000
Interest Rate Market rates, tiered rates based on ADB required month
Documentation Passbook


*All information was taken from the banks' official websites.



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This is part of a  series on bank products:



photo credit: 401(K) 2013 via photopin cc

5 comments:

  1. These rates are per annum right?

    I know someone who raved about BPI's Maxi Saver savings account because it offered 1% MONTHLY daw. I found that hard to believe and we never did settle whether or not the rates were monthly or annually.

    ReplyDelete
    Replies
    1. Yeah, banks are rather misleading that way:) All their rates are per annum, even though it can be computed and credited monthly. So a 2% per annum yields about 0.16% per month - less taxes :D

      That someone may be got it confused with Maxi-saver's 1% per annum bonus (if no withdrawals within a month).

      Delete
  2. Hi, im just wondering. If taxes will be deducted, will the interest rate be able to compensate for the deductions? Any idea on how much tax is deducted on these high-yield savings accounts?

    ReplyDelete
    Replies
    1. Hi Dez, the interest earned is the one taxed. So yes it will be able to compensate, unless the tax is 100% or higher.

      Right now the tax is at ~20%.

      Delete