Published: January 29, 2019 | Updated: May 28, 2020 | Posted by: Venus Zoleta | Personal Finance
Most savings accounts from major banks in the Philippines grow funds at a measly rate of 0.10% to 0.25% per year. A savings account is good enough to keep your money for daily expenses but not for other financial goals in which you need to grow it faster.
Good thing, there are quite a handful of high-interest savings accounts that provide faster returns on deposit. You can even open one from the comfort of your home. These bank accounts earn seven to 10 times higher interest rates than regular savings accounts.
A savings account with a high-interest rate is ideal for building an emergency fund and saving up for short-term goals such as overseas travel, gadget or appliance purchase, or wedding.
Here are 10 peso savings accounts to consider if you want to grow your funds faster in a bank.
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The Citi Bonus Saver is a savings account with a high-interest rate that grows when the accountholder increases his or her average balance by a minimum of PHP 5,000 monthly. It starts from a 0.60% base interest rate and earns as much as 1.56% total interest after 12 succeeding months of increasing the average balance.
Withdrawals from this high-interest Citibank savings account are free and unlimited.
Like the Citi Bonus Saver, BDO’s Optimum Savings Account earns higher interest when the account holder deposits more money. It has the highest interest rate among BDO savings accounts.
BDO allows free withdrawals from this high-interest savings account up to three times per month.
BPI’s Advance Savings Account is its highest interest-earning deposit product. You have to deposit and keep a balance of at least PHP 100,000 to earn interest. Deposits of up to PHP 999,999 earn a 0.75% interest, while at least a PHP 1 million deposit earns a 1.25% interest per year.
The BPI Advance Savings Account comes with a passbook. It can be also enrolled at BPI Express Online for convenient account monitoring.
The eSecure Savings Account is Security Bank’s deposit product for its existing Peso Casa clients. Opening this savings account with high interest is easy because of its low initial deposit of only PHP 500. You can also open an account (and manage it afterward) through your Security Bank online banking account.
The interest rates for this Security Bank savings account varies depending on the account balance. The higher your balance is, the higher the interest you’ll earn.
The interest rate, however, goes down to 0.10% if you withdraw from your account more than once in a month.
Security Bank offers another savings account with a high-interest rate through the Premium Build Up Savings. Because it has no lock-in period, you can access your funds anytime and withdraw up to three times within a quarter.
The Bayani OFW Savings is Sterling Bank’s special deposit product that makes it easy for OFWs to remit money to their loved ones back home. Accountholders simply has to remit through any iRemit center, wire, or telegraphic transfer in their country of employment. Funds are then credited to their Sterling Bank savings account.
This savings account with a high interest rate of 1% (for a balance of at least PHP 2,000) is also easy to open. It doesn’t require an initial deposit and a maintaining balance. The only requirement is remittance made every 12 months from when the account is opened.
Because of these features, the Sterling Bank Bayani OFW Savings Account is a useful tool for OFWs and their families to develop the habit of saving and managing their finances better.
Equicom Savings Bank offers a high-interest savings account for kids up to 13 years old. It comes with a passbook and an option for automatic fund transfer arrangement. Withdrawal can be done up to three times within a month.
On top of the low opening and maintaining balance requirements, the Equicom Kiddie Builders Savings Account also provides free medical and dental benefits from Maxicare (for accounts with a minimum balance of PHP 15,000).
Another high-interest deposit account offering from Citibank, the High Rate Saver is a savings account that earns an interest of 0.70% for balances within the PHP 100,000 to under PHP 2 million range. Interest rates go higher as you increase your balance. Earn 0.75% interest with a balance of PHP 2 million up to less than PHP 5 million. The maximum interest rate of 0.85% applies to balance of at least PHP 5 million.
You can withdraw twice in a month for free. Additional withdrawals cost PHP 20 for ATM withdrawals and PHP 50 for over-the-counter withdrawals.
BPI offers another savings account with a high-interest rate through the Maxi-Saver account. You can open either an ATM or a passbook account with BPI. It earns a growing interest ranging from 0.25% to 0.75% the higher the balance you maintain. You’ll also get a 0.50% bonus interest rate if you have not withdrawn cash from your account within a month.
The Citi e-Savings is one of the bank’s deposit products that earn a higher interest rate compared to traditional savings accounts.
Like the Citi High Rate Saver Account, you can make up to two free withdrawals in a month. Additional withdrawals come with a fee of PHP 20 for ATM withdrawals and PHP 50 for over-the-counter withdrawals.
Citibank also allows free and unlimited electronic funds transfer from an e-Savings account to the accountholder’s other Citibank savings account.
Does any savings account with high interest on the list above suit your needs? Which account will you open? Let us know your choice!