5 Philippine Banks with High-Interest Rate Savings Accounts in 2020

Learn which Philippine banks can help grow your money fast with their high-interest rate savings accounts in 2020.

If there’s one thing this coronavirus pandemic has taught us about personal finance, it’s that each of us should have an emergency fund tucked away. A rule of thumb when it comes to building your contingency fund is to save for it FAST!

In Dave Ramsey’s 7 Baby Steps to financial freedom, the number one step is to save $1,000 as fast as you can that will cover for life’s unexpected events. The keyword here is “fast”, and you can never go wrong with a high-yield savings account for that.

Most savings accounts in the Philippines grow your money at a measly rate of 0.10%-0.25%. If you’re aiming to achieve your financial goals quickly, it’s better to look for banks that can offer more than your average brick-and-mortar bank.

When opening a savings account, there are two things you need to look for: high-interest rate and liquidity. If you’ve done that already, you’re better than the 90% of Filipinos who are stashing their earnings somewhere other than the banks, bonds, or stocks.

As more banks in the Philippines battle into the high-yield savings arena, it can be difficult to sort out the noise and choose the financial institution that offers the best savings account. Nevertheless, this is certainly a good thing for savers!

It’s important to note that you are not locked in a fixed interest rate unlike certificates of deposit when you open a high-interest rate savings account. The rate may vary depending on a number of factors. However, there are still banks that offer higher rates than an average bank in the country. Therefore, it is still a good idea to use them to store your money.

Here are the top 5 banks in the Philippines that offer high-interest rate savings accounts to grow your money faster. (Note: Included in this list are some foreign banks where Filipinos can easily open their savings accounts.)

*  GSave by CIMB Philippines’ interest rate of 4.10% is a special promotion valid until the end of March 2020. Please be informed that the 4% p.a. Interest rate will only be available to CIMB Upsave and GSave account holders with a minimum balance of ₱100,000 effective June 1 to July 31, 2020. CIMB base interest rate is now at 3% p.a. interest rate for UpSave account holders and 3.1% p.a. for GSave account holders effective June 1, 2020. 

** ING Savings interest rate is on an extended promotion until July 31, 2020. 

1. GSave by CIMB Philippines

Interest rate: 4.10% per annum

Min. initial deposit: ₱ 0.00

Maintaining balance: ₱ 0.00

Interest-earning balance: ₱ 0.01 

If you are looking to build your emergency fund as soon as possible, GSave’s CIMB savings account is by far the best option for that. The GSave account will earn you a 4.10% per annum on your balance, which will be paid out monthly.

With no minimum initial deposit, no maintaining balance, and only a  ₱ 0.01 needed to start earning interest, you can easily open a GSave account on your smartphone via the GCash app. Since it’s a digital bank, you don’t need to go to a physical branch to open your savings account. On top of that, you can also enjoy zero annual fees with your GSave account.

Aside from the ability to withdraw through banks, CIMB also presents more options for cash withdrawal such as Dragonpay merchant centers and through ATMs.

The following requirements must be met to be eligible to join:

  • Individuals aged 18 and above
  • Applicant must be a fully-verified GCash user
  • Applicant must be a Philippine citizen and non-US person, and have at least one (1) valid government-issued ID

The GSave account also comes with the following restrictions:

  1. Maximum cumulative deposit of ₱100,000.00
  2. Account validity of 12 months. When your account validity reaches 12 months, you will no longer be able to make a transaction on your account. Account owners may opt to upgrade to a GSave Plus account by downloading the CIMB Bank PH app.

     More information about the CIMB Savings Account here.

Update: CIMB base interest rate is now at 3% p.a. interest rate for UpSave account holders and 3.1% p.a. for GSave account holders effective June 1, 2020. 

2. ING Savings Account

Interest rate: 4.00% per annum

Min. initial deposit: ₱ 0.00

Maintaining balance: ₱ 0.00

Interest-earning balance: ₱ 0.01 

The ING Savings Account is pretty much similar to GSave’s CIMB Savings Account. It also uses the power of digital banking and customers can enjoy a 4% interest rate per annum, promo valid until July 31, 2020. No minimum balance to earn interest, no fees, no minimum initial deposit, and no lock-in period! As of the moment, you can only withdraw your funds to other banks via PESONet. However, CIMB offers more cash withdrawal options through its app and most transfer fees are waived.

For new clients to open an account and enjoy the high-interest rate of 4%, they must do the following within the offer duration:

  • Successfully open an ING Savings Account through the ING Mobile Application;
  • Complete the post verification process, and their ING Savings Account is unrestricted after such completion; and
  • Successfully fund their account.

More information about the ING Savings account here.

3. Citibank Peso Bonus Saver Account

Interest rate: 0.60% to 2.04% per annum

Min. initial deposit: ₱ 50,000.00

Maintaining balance: ₱ 50,000.00

Interest-earning balance: ₱ 50,000.00

The Citibank Peso Bonus Saver Account is the top player in offering high yielding savings accounts if we remove digital banking from the criteria. The account enables you to earn a bonus interest rate of 0.12% gross per annum if you increase your average balance consecutively by at least ₱20,000 per month for 12 months. Once you reach 6 consecutive months of maintaining that deposit amount, the applicable interest rate will balloon to 1.32% gross per annum. When you reach the 12th consecutive month without a hitch, you’ll get the most-coveted applicable interest rate of 2.04% per annum. The principle is to give you rewards for saving more in the bank. Now that’s one terrific way to encourage customers to save more!

If you missed a month of topping up at least ₱20,000.00 to your account, the applicable interest rate will go back to the base rate of 0.60%. 

See sample computation below to track how their bonus interest rate scheme works:

Citibank Peso Bonus Saver Account sample computation

4. BDO Optimum Savings Account

Interest rate: 1.25% to 2.25% per annum

Min. initial deposit: ₱ 30,000.00

Maintaining balance: ₱ 30,000.00

Interest-earning balance: ₱ 30,000.00

Like the Citibank Peso Bonus Saver Account, the BDO Optimum Savings account also has a rewards system where the more money you deposit into your account, the higher the applicable interest rate you can get. Among all the BDO savings products, it is the one that offers the highest interest rate.

This high-interest savings account allows withdrawal up to three times a month free of charge.

Check out the chart below to see how much interest you’ll earn based on your account balance.

BDO Optimum Savings Account savings interest rates

5. BPI Advance Savings Account

Interest rate: 0.75% to 1.125% per annum

Min. initial deposit: ₱ 100,000.00

Maintaining balance: ₱ 100,000.00

Interest-earning balance: ₱ 100,000.00

Compared to the previously mentioned financial institutions that offer high-yielding savings accounts, the BPI Advance Savings Account requires the biggest minimum initial deposit of ₱ 100,000.00.  The base interest rate for the said amount is 0.75%. When you reach ₱1 million and above account balance, you can begin earning a 1.25% annual interest rate.

The interest rate goes as follows:

₱100,000 – 999,999 – 0.75%

₱1 million and above – 1.25%

BPI Advance Savings Account Sample computation

Please research the requirements needed to open a savings account with any of the banks mentioned above. Check the bank’s website or visit a branch to inquire. Click the links provided in this blog to check out more information about the banks included in this list.

To decide which digital bank is better than the other, read my blog post about ING vs CIMB: Battle of Digital Banks in the Philippines.

Which high-interest rate savings account you think suits your needs best? Have you opened one yet? How was your experience? Share it with us in the comments section below!

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Nikkah of Get Financed Lab is a caffeine-fueled work-at-home ninja, hustling her way to financial independence before she turns 40. Like most millennial, she dabs on blogging, starting side-hustles, freelancing, and slaying the mommy life. This blog is her personal finance journey peppered with her words of wisdom, which should always be taken with a grain of salt.