Achieve Financial Independence: Opening Savings Accounts in the Philippines

Introduction

The piggy bank, or the “alkansya” as Filipinos call it, has long been a symbol of frugality and simplicity of life. Its concept is pretty straightforward: you have to stuff the piggy bank with loose coins or spare cash until it gets heavy and full. When that time comes, you can now break it and enjoy the money you stashed over the past months. Many people do this when saving up for something they want to buy, such as a new pair of shoes, the trendiest clothes, or even the latest home appliances.

There’s a problem with piggy banks, though. The money you put in there remains idle and loses value over time through inflation. You might be surprised that the shoes, dress, or devices you want to buy today might be sold at a higher price in the next few years. Don’t be disheartened, though, because you can always open a savings account where you can put your money instead.

A savings account isn’t like your normal piggy bank. The money you put in there grows by accumulating interests over time.

Savings Accounts and Their Interest Rates in the Philippines

Savings accounts are among the financial products commonly offered by banks. To open one, you simply need to go to the bank and go straight to their customer service desk. In most cases, they will request you to provide government-issued IDs, along with other important documents. They will ask you to fill out a form and prepare your initial deposit, too.

Once your savings account is active, you can now put more money in there and wait for it to earn interest. In the financial industry, “interest” refers to the amount of money you earn by putting some funds into your savings account. It’s important to note that some banks offer higher interest rates, so be sure to do your research before deciding which one to entrust your money with.

How Does a Savings Deposit Account in the Philippines Work?

You might be wondering how your money earns interest. Thankfully, it’s not a complex process. It’s easy to understand how it works, so here’s an overview:

You put money in your savings account and let the bank handle it for you.
The bank uses your money and will lend it to some other customers who want to borrow cash.
When the borrower gives the money back, they will be required to pay interest.
A part of the interests they paid will be credited to you.

Different Ways To Save Your Hard-Earned Money

In today’s economy, more and more people are finding it difficult to save money. After all, the prices of basic necessities continue to rise, while many Filipinos still receive measly wages from their day jobs. Some choose to do a side business for additional income.

The bottom line is clear, though. Even though it’s hard to earn money, it’s still wise for you to save, especially for emergencies. Thankfully, there are many ways to save, and here are a few examples:

Piggy Banks – The easiest way to save money is to buy a piggy bank. You only have to put loose coins in there until it’s full. If you don’t need the funds yet, you can simply buy another piggy bank and fill it again with coins.
Savings Account – Go to the nearest bank and open a savings account. Compared to piggy banks, savings accounts let you monitor how much money you currently have. If you download the bank’s mobile app, you can even enroll in an online savings account in the Philippines. It’s a more convenient way for you to access your funds and use them whenever necessary.
Investments – When talking about “investments,” most people would think about the stock market. It’s difficult and incredibly risky for low-income earners to buy stocks, so it’s a good idea to think about other forms of investments instead. There are less risky options, such as land and jewelry, which are sure to have high resale values and returns of investment over time.

The Right Time To Open a Personal Savings Account in the Philippines

The best time to open a personal savings account was a few years ago. If you have done so, your money would have grown already by accumulating small interests. If you haven’t, you don’t have to worry because the second-best time to create a bank account is now. But before you do, here are some tips to keep in mind:

Learn About Your Options – There are numerous banks to open a savings account in, but not all of them offer the same benefits. Be sure to do proper research before choosing a financial institution to partner with.
Ask About the Maintaining Balance – This refers to the minimum amount of money that will keep your account active. Some banks have a high maintaining balance, so you won’t be able to withdraw everything in your account.
Check Online and Mobile Banking Options – Be sure to check if the bank you want to choose has a mobile application that’s easy to navigate. The app is a convenient way for you to access your savings account online, so you don’t have to go to the bank if you wish to check your balance.

What To Do With the Money You Put in Your Savings Bank Account in the Philippines

The money inside your bank account is all yours, and you have all the right to spend it any way you want. If you wish to reward yourself, no one’s going to stop you. Here are some suggestions on what you can do with the money you saved:

Start a New Hobby – Book collecting, painting, doing sports, and other hobbies can be quite expensive. But thanks to the money you saved, you now have enough funds to spend!
Enroll in a Class – Whether you want to further your learning or just want to learn new skills, enrolling in a class is a good way to spend your spare time and money. You can try baking lessons if you wish to become a pastry chef in the future. It’s also a good idea to take language courses if you plan on visiting a foreign country. Seriously, the possibilities are endless!
Send Money to Your Loved Ones – Filipinos are very family-oriented, so your loved ones will be extremely happy if they receive money from you. And no, you don’t have to wait for a special occasion to send money; you can just do it any time you want then send them a surprise text message to inform them about your act of kindness.

Ways Opening a Savings Account in the Philippines Today Can Help You in the Future

Financial experts will encourage you to open a savings account because it has many benefits. Here are a few examples:

Save for Future Expenses – If you want to buy something in the future, it’s a good idea to save early. Build a habit of allocating a part of your monthly salary to your savings, and you’ll be surprised how much your balance has increased in the next few months.
Keep Your Money Safe – You can always put your savings in a separate wallet or piggy bank, but both options are quite risky. Your wallet and piggy bank can be stolen or lost, and when that happens, the money you saved will vanish, too. You won’t have to worry about this if you open a savings account in the Philippines and put your money there.
Prepare for Emergencies – You can never foresee when you’re going to be sick or involved in an accident, but you can prepare for them. Whenever these emergencies happen, you may be obliged to shell out a lot of money. If you don’t have any savings or insurance, the only option is to get a loan and go into debt. Prevent that from happening by starting a savings account today!

Documents To Prepare When Applying for Savings Accounts Online in the Philippines

If you have decided to open a savings account in the Philippines, here are some of the documents you must prepare:

Government-Issued IDs – The IDs you need to present must have your photo and signature. It will be a good idea if it has your birthday, too, so the bank can verify your age. Some of the common IDs accepted are your passport or driver’s license.
Birth Certificate – If you’re under 18, you might need to present your birth certificate. This helps the bank ascertain your age. In some cases, they might ask for your school ID, too, along with a letter of consent from your parents.
Other Documents – Some banks might ask for other documents like proof of income or employment. In most cases, they’ll ask you to fill out an application form and sign various files.

Conclusion

Have you decided to open a savings account in the Philippines today? If so, do not hesitate to go to the nearest Cebuana Lhuillier branch. Our company offers micro savings services that you can take advantage of if you wish to start saving today.

All you need is to prepare a government-issued valid ID and fill out our application form. Once done, submit the documents to the clerk, and wait for your application to be processed and approved. It won’t take a while! You can access your account right after and begin your journey toward financial independence!