Best banks for checking accounts
So which banks offers the best checking accounts? If you’re looking for basic product with low starting capital, then you can actually start with East West Basic Checking and UCPB CheckStarter for individual checking accounts. You can actually open an account with an opening balance of ₱1,000. These two products also have the lowest maintaining balance of ₱1,000.
For business accounts, you may check BPI Business Checking, DBP Current Account, Land Bank Regular Current Account, BPI BizLink, Metrobank Commercial Checking, Maybank Classic Checking Account, PBCom Regular Checking, Robinsons Bank Regular Checking, Robinsons Bank Peso Checking, and PBCom Value Check. You may open any one of them for as low ₱10,000.
Now, you have to remember that some of these accounts don’t earn interest. See your bank’s rep for more information about non-interest bearing and interest-bearing checking accounts.
But if earning interest is your concern, then MetroChecking Extra (Personal – No ATM card) may be something that is worth looking into. With a balance of ₱15,000, your account earns 0.25% interest per annum before taxes.
Best banks for time deposit
What is the best bank for time deposit? Well, it depends on many factors. If you’re only looking for the one with the highest interest rate, then PBCom time deposit products tops the list. It gives 3.875% interest on ₱1 million for a term of 12 months. Other options are BPI Family Savings Bank (3.75% for 1 million) and PSBank (3.75% for 50k with a term of 5 years).
For time deposits, you need to check the starting capital, maturity, fees, and penalties for early withdrawal. Banks should be able to provide you with these information before even opening an account. Another thing to take into account is that the interest rates are not going to be constant. Consider checking with the bank first, as this blog may not be as updated their information.
Best bank for UITF investment
Unit investment trust fund or UITF is an investment product that allows you to take part in the potential growth of the country’s largest companies through stocks or equities , bonds, money market, and other assets.
If you’re looking for a UITF with the lowest starting capital, then you can actually open Development Bank of the Philippines Unlad Kawani Money Market Fund for only ₱25. Next on the list would be Union Bank’s Peso Short Term Fixed Income Portfolio, which you can start for only ₱500.
How about banks with no holding period? Bank of the Philippine Islands (BPI) and Security Bank are the top of the list. Their funds don’t have any holding period, and that means that you can avoid being charged for any exit fee for redeeming your investments too early.
How about the fund with the least management fee? Again, Development Bank of the Philippines Unlad Kawani Money Market Fund is the runaway winner for charging only 0.05% per annum.
Best banks for PERA
Personal Equity and Retirement Account or PERA is an account established by law to allow Pinoy to prepare for their future when they retire. As of the moment, only BPI and BDO offer them with Land Bank poised to launch their own PERA funds soon. And all of these products can be opened for as low ₱1,000.
Structured like UITF with additional tax benefits, they have the same fees as UITF. So the best bank without holding period? All PERA funds from Bank of the Philippine Islands (BPI) don’t have any, and therefore you don’t have to worry about any exit fee.
In terms of the lowest management fee, it is Landbank PERA Money Market Fund that charges 0.20% per annum.
Best bank for LTNCD
Long term negotiable certificate of deposit is a debt instrument issued by the banks and regulated by the Bangko Sentral ng Pilipinas (BSP). Any Pinoy can invest by purchasing them when they’re being made available to the market during the offer date, which usually span for weeks and announced via national broadsheets and online newspapers.
Similar to other debts such as bonds and retail treasury bonds, investors would hold on to the certificates for a period of time, generally around five years. They will receive interest every quarter, and upon maturity they get their capital back in full.
Since the last quarter of 2019, the bank that offered the highest interest of 5.38% is Metrobank on its LTNCDs offered between September 16, 2019 to September 28, 2019.