Best Savings Accounts from the Top Banks in the Philippines

Last Updated on – Aug 30, 2021 @ 7:23 am

Money is the force behind the momentum which allows us to take our families to dates, do grocery shopping, house maintenance, sending remittances, starting up businesses, to raising retirement funds.

What is the best way to contain money?

Wallets come in different forms and sizes.

Some wallets are designed to hold more cards than cash, some are bulky like carrying a stone in your pocket, others are slim and compact, taking up as little space in your pocket like a handkerchief does.

Your wallet must be suited according to your preferences and lifestyle.

Though wallets are a no-nonsense container to carry your cash around, it doesn’t keep track of your spending, that is, unless you are completely shrewd and mindful of your expenses.

The best way to contain money, the metaphorical wallet that keeps track of your expenses and savings, and the most logical, is to open a savings account among the top banks in the country.

Just as mentioned like the wallet above, you may pick the kind of savings account that’s best suited for you.

Entrusting your hard-earned cash with a bank is amongst the first steps towards financial literacy and financial maturity.

Related: How to Save More Money

Gathered in this list are the top banks in the Philippines with information, comparisons to help you figure out which one is most suited for you.

Top Banks in the Philippines in 2021

Banks lend money to people and businesses. Banks are amongst the cornerstones of society.

With money, buildings, companies and businesses are born, hence, employment becomes available throughout society.

The four primary types of banks in the Philippines are as follows:

1. Universal and commercial banks – offers the widest range of financial services. Operates across cities and countries.
2. Thrift banks– Are known to invest savings acquired from depositors.
3. Rural and cooperative banks – banks invested in developing rural economy and communities.
4. Non- banks with quasi-banking functions– offers limited services because of a lack of a full banking license, but is still able to provide bank-related financial services.  

Some of these banks have been around throughout different phases of Philippine history, and behind these banks, The Banko Sentral is the overseeing monetary authority that supervises operations, activities of all banks in the Philippines.

The Banko Sentral also issues directive policies so that banks may have provisions on gains and losses on loans, cash flows, how to deal with bankruptcy, and all the workings and innings of investments.

Below is the list of the top banks in the Philippines, ranked by total assets, liabilities, total loan portfolio (gross), and capital – as of December 31, 2020, via The Banko Sentral ng Pilipinas¹ (amounts in Million Pesos).

Related: Complete List of Bank Codes (BRSTN) & SWIFT Codes (BIC) of Philippine Banks

What does a Bank actually do?

Most people know that a bank is a place where you can save your money securely. However, a bank does more than that. Basically, banks are financial institutions involved in both the borrowing and lending of money.

Customers make a deposit into their account and are paid an annual interest by the bank. The money that is deposited is then lent to other customers for different types of loans.

The bank’s profit margin is determined by the interest rates that they pay their deposit customers and the interest rates that their loan customers have to pay.

Banks play a significant role in the economy. Aside from providing a service for those who wish to save, banks also offer finance to businesses that would like to invest and expand. These business investments and loans enable economic growth.

Banks have four basic purposes²:

1. Keep customers’ money safe

Most people think that depositing their money at the bank is a much safer way to keep their cash than placing it somewhere else, like under their bed.

In the medieval period, people used to pay early banks, such as the Knights Templar, for the safekeeping of their money and assets. Banks also give people peace of mind about money.

The Bank of England guarantees commercial banks in the UK as a lender of last resort (LOLR), so people think their money is safe at the bank.

2. Offer interest on deposits and help protect money from losing value due to inflation

In the case of commercial banks, customers are paid interest on their deposits. While it may be very low for current accounts, the interest rate is often significant for saving accounts. During inflation, the actual value of your savings can be maintained by interest rates on deposits.

For example, if the inflation rate is at 4% and you keep your cash, the real value of your savings will decrease. However, if you deposit your money at a bank that pays a 6% interest rate, your savings will increase in value.

Some bank customers, like pensioners, earn income from interest payments on their savings.

Current Account vs. Savings Account 

With a current account, you can access your money easily and quickly. You can withdraw your money at short notice and the account will have features, like a debit card and ATMs.

Current accounts usually come with very low-interest rates because the bank has to keep sufficient liquidity. 

On the other hand, a savings account (or time deposit account) typically has limits on how much money you can withdraw at a time.

Banks often require customers to give notice (e.g. seven days in advance) if they want to withdraw their money. This allows banks to pay interest at a higher rate since there is less liquidity needed.

3. Lend money to firms and other customers

A bank can generate more profit by lending a portion of its deposits to other customers.

For example, a bank pays an interest rate of 2% on bank deposits. However, it lends money to customers at 6%. This means it can make a profit on its deposits.

It is important to note, though, that a bank needs to maintain sufficient liquidity in order to meet the customers’ demands to withdraw money.

4. Offer financial advice and other financial-related services, like insurance 

Banks can offer consumers quick access to cash (through ATMs),  financial advice, ways to make international payments and special offers, such as free travel insurance with a current account.

What is a Savings Account?

It’s a bank deposit account that lets you store money securely and earn interest at the same time.

Think of it as a safe and secure piggy bank that can hold up to millions of pesos with the added benefit of growth via interest.

Benefits of Having a Savings Account?

What are the advantages of having a savings account? As you’ll learn in a bit, there are plenty. The following points make it clear why everyone should have one.

• It’s PDIC-insured. 

Your money is insured by the government for up to Php500,000³. This means your savings are protected (as long as it’s below 500k) even in the event of financial downturns or issues with your bank.

• A safe place to stash your money (with small interest)

Having a couple of thousand pesos stashed in your home is understandable (for daily expenses, bills, etc.,) but keeping beyond a significant amount of cash for savings doesn’t really make sense in today’s world.

Not only is it riskier, but you also miss out on the advantages of compound interest and the conveniences of having a bank account (ATM card, link to cashless payment schemes, etc.,) if you keep a pile of money as savings at home.

• You can easily withdraw your money anytime

Having a savings account lets you access your money easily, almost anytime and anywhere. Need cash to buy some groceries? Simply go to the nearest ATM terminal to withdraw.

Need emergency funds for hospital bills? No need to visit your nearest bank to get some cash. Having a savings account lets you enjoy all the conveniences of ATM services. 

• Linkability to various e-wallets and online services

Each day, we’re inching closer to having digital payment transactions become a common thing. There’s a lot of stuff you can buy and have delivered right at your footstep without ever needing cash or to visit a physical store.

Pay bills with a few swipes and taps on your phone.  The advent of digital and mobile technology allowed astounding developments in e-commerce and financial tools that make our lives so much easier.

Having a savings account lets you leverage these tools for your own convenience.

• Doesn’t require a large initial deposit

Banks typically require just 1,000 pesos to open a savings account with an ATM card.

For as little as a thousand pesos (some banks don’t even require a minimum deposit), you can start building up your savings and take advantage of the conveniences brought about by digital e-commerce and financial services.

• Emergency fund use

Open a dedicated savings account for emergency funds. This way, you’ll be better prepared financially when unexpected problems arise.

• Highly liquid (your money is not tied up for a long time)

The high liquidity of your money in a savings account makes withdrawing funds easy and no-fuss. There are no lock-in periods (unless it’s time deposit) so you can withdraw money anytime. 

• Automatic deposits make saving easier

This is one of the best reasons to open a savings account. All banks offer a deposit feature that lets you allocate funds from your payroll (or some other linkable source) automatically per the preferences you have chosen.

This feature not only takes away the hassle of constantly having to deposit funds yourself, but it also makes saving money friction-less and automatic, ensuring you’re always building up on your assets.

• Convenient

It’s like having another wallet with you that lets you access your money easily and take advantage of the myriad of online and mobile payment solutions available today.

Related: Best Priority Banking Services & Privileges in the Philippines

Features of Savings accounts?

The following are features common in all savings accounts offered here in the Philippines.

• PDIC Insured

Savings of up to Php500,000 are insured by PDIC. It means no matter what happens, you’re guaranteed to get your funds as long as the amount is below half a million.

• Opening Balance

How much money you need to deposit in order to open an account.

• Base Interest Rate

Dictates how much your money will earn.

• Balance to Earn Interest

Required balance in order for your money to earn via interest. If it doesn’t meet the minimum, your money is simply sitting there, not growing at all.

• Maintaining Balance

How much you should keep in your savings account in order to avoid incurring any fees or charges. 

• Fees and Charges

Payment for services and/or incurring any penalties.

• Online banking services

The platform on which your bank is accessible via internet access or mobile.

Best Savings Accounts in the Philippines

1. BDO

Established in 1968, in terms of assets, BDO leads the pack of Universal and Commercial banks. BDO’s financial services are flexible and it has a full fledged network of ATMS and offices across the country.

Best Savings Accounts from BDO Unibank:

2. Metrobank

Founded in 1962. Another contender amongst the country’s universal banks, Metrobank offers an assortment of financial services for the Filipino consumer with its network of branches and ATMs across major Philippine cities and branches around Taipei and Europe.

Best Savings Accounts from MetroBank:

3. BPI

BPI was known as El Banco Español Filipino de Isabel II during its time of establishment in 1851, making this bank the oldest amongst the banks listed here.

BPI pays special attention to Filipino families and OFWs by catering and customizing their services to suit the needs of the modern Filipino family.

Best BPI Advance Savings Accounts:

Best BPI Direct Savings Accounts:

Best Savings Accounts from BPI Family Savings Bank:

BPI Checking Accounts:

Related: How to Open a Checking Account in the Philippines

4. Landbank

Established in 1963, Landbank is a Government-owned credit institution which primarily caters to rural areas.

During its beginnings, its mission was to help farmers and fishermen through revenues. Landbank is one of the first commercial banks which educated financial management to rural communities.

Best Savings Accounts from Landbank:

5. Security Bank

Security Bank was the first private and Filipino-owned financial institution that rose from the turmoil that was World War II.

Today, Security bank counts amongst the most stable banks in the country.

Best Savings Accounts from Security Bank:

6. PNB

PNB was established by the Philippine government during the American Occupation in 1916.

This universal bank which was fully privatized in 2007, caters mostly to the Philippine government, agencies, local units, and corporations under the government.

Best Savings Accounts from PNB:

7. DBP

DBP is the second largest state owned bank.

As one of the country’s largest controlled corporations, it is both a development bank which deploys banking solutions to agricultural and industrial enterprises, and a thrift bank for small and medium enterprises as well as social services.

Best Savings Accounts from Development Bank of the Philippines:

8. UnionBank

One of Union Banks innovations is that it started the online banking movement in the Philippines. With the EON Cyber Account, this electronic savings account plugged in the beginning of electronic transactions.

Best Savings Accounts from UnionBank:

9. RCBC

Founded in 1960, RCBC began its operations as a development bank, until it was licensed by the Banko Sentral of the Philippines for commercial and investment banking.

Ever since then, RCBC has become one of the most stable and continuously growing financial institutions in the country. It also manages numerous remittance offices in over 24 countries to cater to overseas Filipino workers and businesses.

Best Savings Accounts from RCBC:

10. UCPB

United Coconut Planters Bank was used to be known as First United Bank during its inception on May 1963.

As the name implies, UCPB is heavily invested on developing Coconut Farms, farmers and the manufacturing of Palm oil.

Best Savings Accounts from UCPB:

11. Chinabank

Chinabank was the first privately owned local commercial bank in the Philippines. In its year of inception during 1920, Chinabank’s initial clientele were Chinese-Filipino Businessmen.

After decades in the business, China Bank now offers a wide range of financial services in the country such as deposits, trusts, investments, remittances and cash management.

Best Savings Accounts from Chinabank:

12. EastWest Bank

EastWest Bank is the 10th largest privately owned domestic commercial bank in the Philippines – which was founded back in July 6, 1994 by its parent company Filinvest Group.

Best Savings Accounts from EastWest Bank:

13. ING Philippines

ING is a global bank that operates in more than 40 countries across Asia, Europe, and the Americas.

They’ve been doing business in the Philippines for more than 3 decades, focusing on providing wholesale banking services to local and international corporations.

In 2013, they established their Shared Business Services which now runs their global banking operations.

Additional Features:

• Easily open a savings account using just your smartphone
• Generate e-Statements via ING’s official mobile app (free)

14. CIMB Bank

Established just two years ago (2018), CIMB bank quickly became one of the most popular options when it comes to mobile banking, thanks to its focus on mobile technology.

They bagged the most number of awards when it comes to digital banking and now boasts of having a total of 2 million customers.

Additional Features:

CIMB UpSave Account

• Free life insurance coverage of up to Php2 million with a minimum average balance of Php100,000. No medical check-up, zero fees, and zero premiums required.

CIMB Fast & Fast Plus Account

• Open an account using just your smartphone
• Contactless transaction feature via CIMB Bank Visa debit card at contactless payment terminals that support Visa. 

GSave

• Open and maintain a CIMB savings account via GCash
• Move funds in and out via GCash

15. Citibank

Citibank Philippines is the biggest foreign commercial bank in the country when it comes to assets and revenue.

Aside from consumer banking services, they also provide corporate, treasury, and transactional banking services to Filipinos.

So there you have it. Feel free to make comparisons amongst these different savings accounts to figure out what is best suited for your needs.

How to open a savings account in the Philippines

Opening a savings account is a fairly easy process and the steps are generally the same across most banks. Here’s a quick guide to help you get started.

Step 1: What is it for?

The first step is to be clear on what you plan on using the new savings account for.

Is it going to be your main savings fund? Then best to get one that offers the best interest rates. Is it for receiving payments/income (e.g, for freelancers, self-employed)?

Then get one that features seamless transfer payment features and easily links to most payment providers (e.g, PayPal, Skrill, etc.,). 

As you can see, it’s all about leveraging each bank’s strengths for your specific purpose.

Don’t simply open a savings account with a popular bank just because they’re well-known. Rather, pick one that offers features perfectly suiting your needs. 

Step 2: Decide on the bank and check out the requirements

After reviewing your options, take your pick and learn about the requirements for opening a savings account.

Most banks typically require just a valid ID or two along with the completed application forms. Some newer banks even allow you to open an account via just your smartphone (check out CIMB and ING offerings). 

Step 3: Visit the bank and submit the requirements

Approach the desk of the new accounts officer and submit the requirements. The entire process is fairly quick and shouldn’t take more than an hour in most cases (unless there’s a long queue)

Step 4: Get your ATM card and change your PIN.

Most banks will ask you to return at a later date to pick up the ATM card.

They will contact you via text or email. Once notified, drop by the bank and secure your ATM card. They will provide instructions on how to customize your PIN. 

Step 5: Sign up for online and mobile banking

Almost all banks today offer an online platform for managing your account. While optional, you should take advantage of it.

It lets you do a variety of things like pay for bills and send or receive money—all via your web browser or mobile app. It also lets you link to mobile wallets and e-commerce platforms (like GCash, Coins, Shopee Pay, etc.,), allowing you to conveniently transact online and take advantage of promos and discounts.

Related: 11 Best Time Deposit Accounts in the Philippines

6 Things to consider before opening a savings account

1. Location 

Pick a bank with a branch close to your home so it will be convenient to drop by if needed

2. Online Services

Choose a savings account with a bank that provides easy online access and has excellent service uptime. Options to send or receive money and pay bills via online banking are useful features to have.

Also Read: 9 Best Prepaid Cards (Visa/Mastercard) in the Philippines

3. Fees and Charges 

Not all banks implement the same charges for their savings account. Do some bit of research and compare rates before signing up.

4. Transaction Limits 

Some banks have smaller limits than others. If you think you’ll need access to bigger amounts in cases of emergency, pick one with higher limits.

5. Interest Rates 

Pick the best rate for your savings goal (compare the best savings accounts using the tables for each of the top banks in the country we’ve shared above). 

6. Minimum Maintaining Balance

Some banks require a higher minimum maintaining balance so if you want the least amount possible make sure to check your options.

Types of Savings Accounts in the Philippines

Before opening an account, consider the main reason why doing it in the first place.

A basic savings account is good for easy access and convenience while money market types may present better interest rates at the cost of having stricter conditions.

ATM or Passbook Savings Account 

The most simple type of savings account.

You should opt for the ATM option if you need to access the money often (e.g, for receiving payment from freelancing gigs) otherwise a passbook savings account will be better in terms of safeguarding your money (less temptation to access it since it’s more inconvenient)

Money Market 

Banks offer this type of savings account for people who want a more robust way of growing their money versus regular savings accounts.

A higher maintaining balance is usually required though along with lesser number of allowed monthly withdrawals.

Also, if you’re interested with credit card applications, Grit has you covered over on this list of the best credit cards in the Philippines. 

1. BSP.gov.ph
2. Economics Help
3. PDIC.gov.ph