Note: This was previously published in my other blog that I had already taken down.
Earlier while we’re having lunch in the Limerick (in Ireland) office, our conversation flew into financial matters and I was asked, “How much is the interest rates of banks in the Philippines?”. I struggled to say anything because I was always engrossed with Mutual Fund growth rates instead of the bank deposit rates.
I kept on blabbing, saying random small numbers that would cross my mind.
I have ignored bank interest rates because I know putting my money in the bank won’t do outstanding growth for my money. Why, you ask. Because dearie, the inflation rate of our country is double the largest deposit interest rate, which only applies if you have leave Php10,000,000.00 deposited in your bank. And, it should be untouched for a year.
So, again, I mumbled a weak blah-blah percent while thinking about the interest that is in question. Is it a loan interest? Bank deposit interest? Hah. My weakness is me talking about things that I don’t really really know. And there were foreigners with us — an Indian, a Congolese, an Irish and Filipinos.
Good thing my fellow Pinoy who is working there was able to answer that for me. He said 1%.
(Sigh of relief.)
Okay, I could have contributed much to the conversation if we’re talking about Life Insurance and Mutual Funds.
My intended ignorance was further supported by Randell Tiongson‘s Facebook status a month back. To quote,
So, yeah, I may have gone overboard in ignoring the deposit rates of banks here in the Philippines, but now I should be at least aware. After all, I am keeping my emergency fund in one of these banks. And, I might as well share that with you guys here.
Before you go dizzy staring at table, please know that you can SORT them out by typing in the bank or account type on the Search button on the upper right of the tables. Thank you!
This is a compilation that I made based on the official websites of the identified banks. I’ll try to keep them updated as possible. For now, these are the interest rates as of January 2015.
Bank Deposit Interest Rates in the Philippines
|Bank||Account Type||Initial Deposit (Php)||Minimum Monthly Amount (Php)||Minimum Monthly Amount to Earn Interest (Php)||Interest Rates|
|Bank of the Philippine Islands||Savings Account||500.00||3,000.00||5,000.00||0.25%|
|BPI Family Savings Bank||Savings Account||500.00||10,000.00||3,000.00||0.50%|
|Banco de Oro||Savings Account||2,000.00||2,000.00||5,000.00||0.25%
|East West Bank||Savings Account||2,000.00||2,000.00||10,000.00||0.25%
|Metro Bank||Savings Account||2,000.00||2,000.00||10,000.00||0.25%
|Banco de Oro||Passbook Savings||5,000.00||10,000.00||10,000.00||0.25%
|East West Bank||Passbook Savings||5,000.00||5,000.00||10,000.00||0.25%
|BPI Family Savings Bank||Passbook Savings||10,000.00||10,000.00||25,000.00||0.50%|
|Metro Bank||Passbook Savings||10,000.00||10,000.00||10,000.00||0.25%|
|Bank of the Philippine Islands||Passbook Savings||10,000.00||10,000.00||25,000.00||0.25%|
|Union Bank||Savings Account||25,000.00||25,000.00||25,000.00||0.10%
Time Deposit Interest Rates in the Philippines
Meanwhile, here are the time deposit rates here in the Philippines.
|Bank||Principal Range (Php)||~30 Days||~60 Days||~90 Days||~180 Days||~360 Days|
|Bank of the Philippine Islands||50K to < 100K||0.5%||0.5%||0.5%||0.75%||0.75%|
|Bank of the Philippine Islands||100K to < 1 M||0.625%||0.625%||0.625%||0.875%||0.875%|
|Bank of the Philippine Islands||1 M to < 5 MM||0.625%||0.625%||0.625%||0.875%||0.875%|
|Bank of the Philippine Islands||5 MM and over||0.75%||0.75%||0.75%||1.00%||1.00%|
|BPI Family Savings Bank||50K to < 100K||0.75%||0.75%||0.75%||1.00%||1.00%|
|BPI Family Savings Bank||100K to < 1 M||0.875%||0.875%||0.875%||1.125%||1.125%|
|BPI Family Savings Bank||1 M to < 5 MM||1.00%||1.00%||1.00%||1.25%||1.25%|
|BPI Family Savings Bank||5 MM and over||1.125%||1.125%||1.125%||1.375%||1.375%|
|Banco De Oro||1k to <50k||0.25%||0.25%||0.25%||0.50%||0.50%|
|Banco De Oro||50k to <100k||0.375%||0.375%||0.375%||0.625%||0.625%|
|Banco De Oro||100k to <500k||0.50%||0.50%||0.50%||0.750%||0.750%|
|Banco De Oro||500k to <1M||0.625%||0.625%||0.625%||0.875%||0.875%|
|Banco De Oro||1M to <5M||0.750%||0.750%||0.750%||1.00%||1.00%|
|Banco De Oro||5M and over||0.875%||0.875%||0.875%||1.125%||1.125%|
|Metro Bank||10k to <50k||0.250%||0.250%||0.250%||0.500%||0.500%|
|Metro Bank||50k to <200k||0.250%||0.500%||0.500%||0.750%||0.750%
|Metro Bank||200k to <500k||0.375%||0.625%||0.625%||0.875%||0.875%|
|Metro Bank||500k to <1M||0.500%||0.750%||0.750%||1.000%||1.000%|
|Metro Bank||1M to <5M||0.625%||0.875%||0.875%||1.125%||1.125%|
|Metro Bank||5M to <10M||0.750%||1.000%||1.000%||1.25%||1.25%|
|Metro Bank||10M and over||0.875%||1.125%||1.125%||1.375%||1.375%|
|East West Bank||10,000.00 (minimum)||Based on prevailing market rates||Based on prevailing market rates||Based on prevailing market rates||Based on prevailing market rates||Based on prevailing market rates|
|Union Bank||50,000 (minimum)||Fixed for chosen placement term; subject to rate adjustments if pre-terminated||Fixed for chosen placement term; subject to rate adjustments||Fixed for chosen placement term; subject to rate adjustments||Fixed for chosen placement term; subject to rate adjustments||Fixed for chosen placement term; subject to rate adjustments|
Inflation Rates in the Philippines
You know what inflation rate is, right? It’s the sustained increase in the general level of prices of goods and percentages, measured as a yearly percentage increase.
Our inflation rate has become steadier to 2%-4.5% over the last four years. It was worse back in 2009. It was around 7%. The lower the inflation rate is, the better. We only have an inflation rate of only 2.3% this 2015.
If you compare the highest deposit rate in the banks (0.50% for savings, 1.375% for a 5-M to 10-M time deposit), it would still not be even equal to the lowest inflation recorded for the past few years (2.3%)!
If you’re keeping all of your money in a jug, it’s like you’re letting water out of that jug faster than you’re letting the water in. There’ll come a time when your jug will become empty.
If you put your money in the bank, it will just lose its value in there. Don’t commit this financial mistake.
The Question, You Think About It
Will you still place all of your money in the bank now? Now that you have seen the actual deposit rates of the banks versus the inflation rate, would you still feel safe keeping all of your money in the banks?
Picture Source: 1