Everyone needs savings. Whether you’re a fresh graduate, a newlywed, or a professional considering retirement, having a nest egg gives you security, peace of mind, and a foundation for a better future.
Opening a bank account is the best way to secure and manage your savings. Choosing a bank in the Philippines boils down to several factors – each carrying more weight than the other depending on your priorities and preferences. Before considering these facets, you must also know your options when choosing a bank.
Rural banks
Rural banks are established mainly to offer loans to farmers, fishermen, cooperatives, or other countryside-based entrepreneurs. These banks may be smaller but they have strong ties within their local government and community, allowing for more personalized service.
Thrift banks
Generally bigger than rural banks, thrift banks offer more loans and investment options. They also accept foreign currency deposits. Thrift banks are ideal for people who prefer saving money via cash deposits.
Commercial or universal banks
These types of banks are some of the biggest banks in the Philippines. They offer digital banking services and may even have thrift banks or rural banks as subsidiaries. Apart from providing basic lending and savings services, commercial and universal banks can also buy and sell securities for their customers and act as advisors for investment management accounts.
Digital banks
The popularity of digital banks rose with the growth of e-commerce. These banks have no physical branches, so you save, transfer, and make payments through their websites or mobile apps. Digital banks are ideal for people who make most of their transactions online or use cryptocurrency.
With these general options in mind, let’s discuss how you can best choose a bank to house your savings.
1. Security and stability
When you’re handing your hard-earned money to a bank for safeguarding, then what you’re asking in return is peace of mind. You want reassurance that your money can grow, conveniently accessible, and, most importantly, will be kept safe whatever happens.
What you’re looking for is a bank that has branches with heavily guarded security and ATMs that are safe and secure. Most importantly, what you want is a bank whose online facilities are safe from hackers and online theft. Ideally, their mobile apps should at least have two-factor authentication to give your account solid protection.
2. Bank fees
A bank account is not just a grown-up "piggy bank." There are bank fees involved, depending on the services you will be availing.
Examples of bank fees:
When choosing a bank for your savings, research all the bank fees you may encounter in your usual transactions. These should be put into consideration when trying to determine the bank where you can maximize your earnings. Every peso counts, and the charges you may be paying should never come as a surprise.
3. Minimum balance requirements
Aside from regular bank fees, possible penalty charges can also impact your savings. Learn the minimum balance requirements of your candidate banks to avoid penalty charges. Some banks require a higher minimum balance than others but may also offer a higher annual percentage yield.
If your bank account is mainly for savings, then a higher minimum balance should not be an issue. But if you plan on frequently withdrawing most of your money, you should look for banks with a smaller or, preferably, no minimum balance. Most banks may offer you different kinds of accounts depending on how you plan to use your money.
Another possible penalty charge you want to avoid is dormancy fees. This is charged to accounts that have no activity for a certain period. So, you should know the maximum time allowed for account non-activity and the bank’s dormancy fee. If you plan on not using your savings for a long period, then maybe other bank products like investments or term deposits could be more suitable.
4. Accessibility and convenience
One of the most important things to consider when choosing a bank is accessibility to your funds and their services. A bank with numerous branches and ATMs scores high on the accessibility and convenience scale. These are usually some of the biggest banks in the Philippines, and they usually can be found in commercial areas, along major roads, and even in far-flung areas in the provinces.
Aside from accessible physical locations, online accessibility is also important. It's a digital world, and you perform many daily transactions online, often with a mobile phone. You should research banks with mobile apps and find out which ones have the most reliable online banking services.
Is their mobile banking app easy to use? Do they make online payments and transfers more convenient? Are they easily connected or linked to other digital banks, wallets, e-commerce sites, and apps? Consider these aspects when assessing the best online banking capabilities.
5. Menu of products and services
Most banks today function as full-service financial institutions. In addition to savings and other bank accounts, they also provide investment opportunities, foreign exchange services, insurance, and credit cards. A bank’s menu of services should be a massive dealmaker if you aim to diversify your savings.
There are advantages to availing all these products through one bank instead of getting your insurance, investment accounts, and credit card from separate companies. For instance, it is quicker and more convenient to open other accounts when you already have a savings account with the bank. For example, getting approved for a credit card is generally easier when you already own a savings account in that bank.
Another advantage is lesser or no fees when transferring funds from one kind of account to another. Since the transaction happens within the same bank, they will not charge the kinds of service fees you will find in interbank transactions. The transaction will be smoother and easier to follow up since you’ll only need to communicate with a single company.
6. Customer service
How banks treat their customers is a terrific indicator of their corporate identity. A bank may be an institution, but they are also composed of people whose personalities end up becoming the company’s brand.
Look for a bank that values its relationships with customers. Visit their branches and observe how they approach and talk to the people coming in. Do they have an efficient queueing process? Do they make it easy for people to open an account or conduct business? Is there a friendly atmosphere inside?
You can also try contacting their customer hotline. Their call service agents are probably their most important customer service people since you will probably be calling their hotline more often than you will be visiting their branches. Give them a try and see if it’s easy to get through one of their agents. Are they polite and helpful? Do they explain things efficiently?
No bank is perfect. But if things were equal, the quality of customer service might be a good tiebreaker when choosing a bank. When a bank truly values its customers and shows it in practice, they can address any issues or problems you may encounter properly.
7. Your financial goals and needs
Look for banks that offer services aligning with your goals. For example, if you're investing, find a bank with robust investment options. If you need capital to jumpstart your business, evaluate the bank's offerings in terms of business loans, lines of credit, and other financing options. The best bank for your enterprise would be one that addresses all these and complies with additional regulations related to business finance, taxation, and industry-specific requirements.
The strongest banks in the Philippines are the ones that have been standing tall for many years and generations. Longevity is a hallmark for any reliable bank because being around throughout the decades and through all the ups and downs of the economy is a testament to its excellence.
When choosing a bank for your savings, consider Chinabank. It has stood the test of time, proving to be one the most stable and reliable banks in the Philippines for over a century. It offers a full range of financial products and services to help grow your money, give you convenient access online, and provide high-level security for your finances. Start your journey with Chinabank and discover the products and services that match your lifestyle.
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