Frequently Asked Questions about Savings Accounts in the Philippines


Welcome to our comprehensive guide on savings accounts in the Philippines. In this article, we (CashLoanPH) will address frequently asked questions regarding savings accounts and provide you with valuable insights into the world of financial management and banking. Whether you’re a first-time saver or looking to optimize your existing savings strategy, this guide will help you make informed decisions and maximize the benefits of having a savings account.

What is a Savings Account?

A savings account is a type of interest-bearing account offered by banks and financial institutions. It provides a secure and reliable avenue to deposit and store your money while earning interest over time. With a savings account, you can effectively “park” your funds, ensuring their safety and liquidity. The interest accrued on your savings adds to the overall value of your account, helping your money grow over time.

Are online banks safe?

Online banks have gained popularity in recent years due to their convenience and accessibility. While traditional brick-and-mortar banks still dominate the market, online banks have implemented robust safety protocols to ensure the security of your funds, personal information, and transactions. These security measures include encrypted communications, multi-factor authentication, and fraud detection systems.

However, it is crucial to exercise vigilance in safeguarding your online banking credentials. Avoid sharing your PINs or passwords with anyone and refrain from saving them in your web browser. In case of any suspicious activity, promptly report it to your bank to mitigate potential risks.

Why should you get a Savings Account?

Having a savings account offers numerous advantages beyond the safety of your money.

Firstly, most savings accounts in the Philippines are insured by the Philippine Deposit Insurance Corporation (PDIC), providing an additional layer of protection for your deposits.

Secondly, savings accounts generate interest on your deposited funds, allowing your money to grow over time. The interest rates vary among banks, typically ranging from 0.125% to 4% per year. By leveraging the power of compound interest, you can significantly increase your savings over the long term.

I already have a payroll account from this bank, should I still get a Savings Account?

While a payroll account offers the convenience of not requiring a maintaining balance, it is typically tied to the company that issued it. If you change jobs or separate from that company, your payroll account may either convert to a regular savings account or close due to insufficient funds. Furthermore, payroll accounts usually do not earn interest. By obtaining a separate savings account in at least one bank, you can avoid potential complications and enjoy the benefits of earning interest on your savings.

Can I have more than one Savings Account?

Absolutely! It is entirely possible to have multiple savings accounts in the Philippines. In fact, many individuals choose to open accounts with different banks to diversify their savings and take advantage of unique features offered by each institution. Some banks even provide the option of a combined Savings+Checking account, providing greater flexibility in managing your finances. Additionally, by exploring different banks, you can find accounts with lower maintaining balances and attractive interest rates tailored to your specific needs.

What makes a GOOD Savings Account?

When evaluating savings accounts, several key factors contribute to determining a good account:

  • High Interest Rates: Look for accounts that offer competitive interest rates. The higher the interest rate, the faster your savings will grow.
  • Relatively Low Minimum Balance: Consider accounts with lower minimum balance requirements. This ensures that you can maintain the account without facing excessive fees or penalties.
  • Low to Average Maintaining Balance: Find accounts with reasonable maintaining balance requirements, as this determines the amount you need to keep in your account to avoid penalties.

By prioritizing these factors, you can choose a savings account that aligns with your financial goals and maximizes your earnings potential.

Key Terms to Know

To fully grasp the nuances of savings accounts in the Philippines, it is essential to understand the following key terms:

  1. Interest Rate: The interest rate represents the percentage at which the bank rewards you for keeping your money deposited in the account. It determines the growth of your savings over time.
  2. Compound Interest: Compound interest is the interest earned not only on the initial deposit but also on the accumulated interest. This compounding effect accelerates the growth of your savings exponentially, allowing your money to work harder for you.
  3. Maintaining Balance: Maintaining balance refers to the minimum amount required to keep in your savings account to avoid penalties or account closure. Make sure to adhere to this balance to retain the account’s benefits.
  4. Minimum Balance to Earn Interest: This is the minimum amount you must maintain in your account for it to start earning interest from the bank. Ensure your balance stays above this threshold to enjoy the interest-earning potential.
  5. ADB (Average Daily Balance): ADB, or Average Daily Balance, is another parameter used by banks to calculate penalties or determine interest earned. It represents the average amount maintained in your account over an entire month.
  6. Withholding Tax: The Bureau of Internal Revenue imposes a 20% withholding tax on the interest earned from a peso bank account. This tax is deducted by the bank before the interest is credited to your account.

By familiarizing yourself with these terms, you can navigate the intricacies of savings accounts more effectively and make informed decisions.


In conclusion, a savings account is a valuable financial tool that offers security, growth potential, and flexibility. Whether you opt for traditional banks or explore the convenience of online banking, savings accounts provide a safe haven for your funds while allowing them to earn interest over time.

Consider your financial goals, interest rates, maintaining balances, and minimum balance requirements to select the best savings account that suits your needs. By leveraging the power of compound interest and practicing prudent financial management, you can take control of your financial future and achieve your savings objectives.

Unlock Your Financial Potential with UnaCash

UnaCash understand that managing your finances involves more than just savings accounts. If you ever find yourself in need of extra funds for essential purchases without dipping into your savings, they’ve got you covered. UnaCash offers hassle-free Lazada loans with affordable bi-monthly installment plans tailored to fit your budget. With their convenient loan options, you can shop for essentials while maintaining the integrity of your savings.

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CashLoanPH Changed status to publish 06/06/2023
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