Opening a bank account in Philippines
There is a sizable expat population living in the Philippines, an archipelago of more than 7,000 islands in the western Pacific Ocean. It is apparent that a large number of expats are drawn to the Philippines due to its incredible diversity, natural beauty, and kind population. Did you know that the Philippines constantly ranks as one of the top countries in the world for expats to live?
You will need to develop a financial life as a student, professional, investor, or retiree if you have just moved there or are considering doing so, whether you want to live in hectic Metro Manila or the relaxed countryside.
Currency in Philippines
The Bangko Sentral ng Pilipinas (Philippine Central Bank) issues licences to a wide range of financial institutions in the Philippines, including major international banks, national banks, thrift banks, and rural banks. Internet, ATM, and mobile banking are just a few of the many services that big banks provide.
The Philippine Deposit Insurance Corporation (PDIC) provides deposit insurance. No matter how many accounts a depositor has in the same bank as of June 2016, the maximum insurance coverage is P500,000 per depositor per bank.
The Philippine banking system supports international banks, domestic financial institutions, and tiny, rural banks. International financial institutions like Citibank, Bank of America, and HBSC are frequently preferred by expats over national ones like the Philippine National Bank, Metrobank, and Bank of the Philippine Islands. Small, rural banks tend to offer limited services and may be prone to closure with little or no warning, so expats should generally avoid them.
What different bank choices available in Philippines?
As an advanced nation with a banking system that meets international standards and a wide range of domestic and foreign financial institutions, the Philippines is best suited for foreign banks like Citibank and HSBC or one of the country's major banks because they serve the majority of the country and are generally simpler for newcomers to deal with.
Here are the top four banks in the nation.
- Banco De Oro(BDO): BDO is the largest bank in the Philippines, with 1,400 branches and 4,400 ATMs spread throughout the nation. Due to their wide branch & ATM networks, they offer comprehensive banking services, including current, savings, investment, and multi-currency accounts.
- Metrobank:A second significant and well-known bank in the nation, with a sizable network of ATMs (more than 2300 state-wide) and branches (more than 950 nationwide) and a broad range of products, including personal and private banking, accounts for small enterprises, and investor accounts.
- Landbank of Philippines:This government bank offers a wide range of services and products, including checking and savings accounts, debit and credit cards, insurance, and loans. It also has a sizable network of branches and ATMs.
- Bank of Philippine Islands (BPI): This well-known bank has several account choices for individuals, company owners, startups, and investors alike and has locations all throughout the Philippines, in addition to offering superior online and phone banking. Among the benefits of BPI accounts include cards, SMS alerts, the ability to earn interest, and the fact that checks are cleared as cash.
Additional banking options that you have:
- Security Bank
- Development Bank of the Philippines
- Union Bank
- RCBC (Rizal Commercial Banking Corp.)
- EastWest Bank
- UCPB (United Coconut Planters Bank)
- AUB (Asia United Bank)
- Philtrust Bank
- Bank of Commerce
- Robinsons Bank
Advantages of opening a bank account in Philippines
There are several benefits to opening a bank account in the Philippines, some of which are listed below:
- By opening a bank account, you may avoid paying exorbitant ATM withdrawal costs.
- Transfer fees will continue to be reasonable;
- Opening an account will make it simple for you to access and manage your finances.
Opening a bank account in the Philippines
It's helpful to have a basic understanding of the different account types available before you begin looking into Philippine banks. Some accounts may not be available to you, depending on your situation.
- Non-resident: You can have trouble opening a bank account in the Philippines if you don't have a local home address there. Being classified as a "non-resident alien"—a foreigner who has been in the nation for fewer than 180 days—could make things challenging for you if you've recently arrived. But it is dependent on the bank.
Though there could still be some choices. As a non-resident, you might be able to create a foreign currency account or open an account with a global bank that has branches in the UK and the Philippines. If feasible, they will assist you in transferring your account when you relocate.
- Resident: Your status will convert to "resident alien" if you have lived in the Philippines for at least 180 days and have a local address. You will thereafter be able to open the majority of bank accounts that are accessible to Filipino nationals.Checking, savings, time deposit, and investment accounts are included. In addition to it, you need to be able to apply online (where accessible) and use debit and credit cards.
- Student: Additionally, certain banks in the Philippines provide student accounts, sometimes in the form of savings accounts.For instance, Metrobank, another of the nation's largest banks, offers the Spark Savings Account. This account includes no initial deposit, 24/7 access, a debit card, and is open to applicants aged 7 to 21 years.
- Savings: Prepared to spend some time in the Philippines? You might want to consider opening a savings account if you are employed and making money.
There are several distinct types of savings accounts, which are provided by almost all Philippine banks. This covers accounts with simple access, fixed or time deposits, regular savings, and high yield interest rates.
Eligibility criteria to open bank account in Philippines
In the Philippines, any individual can open a bank account. Previously, non-residents, including those with a temporary visitor's visa, could only open accounts with foreign currency deposits or accounts with peso deposits that had been converted from foreign currency deposits. A non-resident's peso account may now be opened as per the recent amendment made banking laws funded. Here is the list of some of basic eligibility criteria for opening a bank account in Philippines:
- Peso earnings from provided services or from compensation and other perks
- Dollars received from the sale of eligible property
- Peso funds of international students studying in the Philippines for at least one semester
- Non-resident Filipinos' Peso money
- Peso earnings from domestic stock sales of PSE-listed companies
Documents needed for the bank account in Philippines
For opening a bank account in the Philippines, you must visit a branch, complete paperwork, and provide proof of your identity and domicile in the form of a few identification papers. If you speak with the bank manager and explain your particular set of circumstances to them, it could even be feasible to make some exceptions to the restrictions.
Generally, following are the papers you require to open a bank account in Philippines:
- Immigration papers like your Alien Certificate of Registration (ACR) card or, in some circumstances, the Immigrant Certificate of Registration.
Foreign nationals residing in the Philippines are frequently asked to show both their passport and their Alien Certificate of Registration (ACR) I-Card. If you don't have an ACR I-Card, you may produce an Immigrant Certification of Registration (ICR) or another form of identification in its place, but the account may not be approved until you meet with the bank manager.
- A legitimate ID including your picture and complete details. Your passport, driver's licence, a major credit card, or any other ID that was issued lawfully can serve as identification. Be aware that even though the central bank only requires one ID instead of two, many banks still want two IDs.
- Address proof, such as utility bills or rental agreements
- A minimal down payment (specified by the bank)
- Passport photographs in the 5x7 size (some banks capture your photo using a webcam)
Few banks may ask for a reference letter from your current or past bank, and they may even call that bank to acquire information in some specific circumstances where criteria may vary.
Process of opening bank account in Philippines
The procedure for creating a bank account in the Philippines is described below in detail:
- First, the candidate has to conduct in-depth research. Look closely at all of the offerings, advantages, and fees before choosing a bank.
- Determine which bank you want to use after that, and then determine what kind of account you want to establish.
- Assemble the necessary paperwork and complete the application;
- After making the necessary deposit, your bank account will eventually be activated.
Banking fees in Philippines
The initial deposit minimum needed to start an account is the first factor. Depending on the account, 'premium' accounts typically require a larger deposit. You may anticipate this being set at between 5,000 and 10,000 PHP for most checking accounts.
Additionally, you might need to have a minimum daily amount, which is frequently equivalent to the minimum initial deposit. If you fall short of this, you could have to pay a 200–300 PHP account maintenance cost.
Additionally, there can be costs associated with using an ATM in the Philippines or an ATM run by a different bank.
Joint account in Philippines
Bank accounts that are shared by two or more people are known as joint accounts. Joint accounts are not exclusively for couples, as is sometimes believed. A family member, adolescent children, senior parents, a business partner, or anybody else you trust can have access to your bank account. The BSP (Bangko Sentral ng Pilipinas) has loosened restrictions on internet banking, enabling electronic signatures and the national ID to serve as the only forms of identification for creating accounts. In addition, regardless of the kind of joint account, account holders are now permitted to deposit money without the permission of their fellow account owners.
Documents required for opening joint bank account in Philippines
The complete list of documentation you will require to create a joint account in the Philippines is as follows:
- A copy of a government-issued ID that is in good standing;
- Note: Photocopies and the original form of the ID must be given.
- Your Tax Identification Number (TIN) details
- A duplicate of your passport
- The bank's predetermined initial deposit amount.
Process of transferring money to joint bank account in Philippines
The following describes how to transfer money to a Philippine bank online in step-by-step fashion:
- On CompareRemit.com, compare the USD to PHP exchange rates and transfer costs of the leading money transfer firms.
- Decide on the money transfer service that best suits your needs.
- Press the "Send Money Now" button.
- Type the sum you want to send.
- Fill out your information and choose a payment method.
- Pick "Bank Deposit" as your choice for receiving.
- Type the recipient's Philippine bank information.
- After clicking "Send," your money will be sent to the Philippines.