The Philippines is a popular destination for expats looking to retire, work, or simply enjoy the tropical lifestyle.
But before you can fully immerse yourself in all that this beautiful archipelago has to offer, you’ll need to sort out your finances – and that means opening a local bank account.
Luckily, the process of opening a bank account in the Philippines as a foreigner is relatively straightforward, as long as you have the necessary documents and meet the bank’s requirements.
Many international banks like Citibank and HSBC have branches in the Philippines, which can make integrating your finances easier if you already bank with them in your home country.
Choosing the Right Bank in the Philippines
The first step is to choose a bank that suits your needs. Foreigners typically opt for large national banks such as Philippine National Bank, Metrobank, and Bank of the Philippine Islands.
Of course, global firms like the aforementioned Citibank and HSBC are also viable options. Especially if you’re a foreign expat, or conduct most of our banking internationally.
Banco de Oro (BDO), the country’s largest bank, is a popular choice among expats. They offer a wide range of services including savings accounts, debit cards, credit cards, and US dollar accounts.
BDO has over 1,400 branches and 4,400 ATMs nationwide, which makes it a convenient option.
Other top contenders include Metrobank, known for its foreign currency savings accounts and cashback perks, and the Bank of the Philippine Islands (BPI), which boasts a user-friendly mobile app and extensive branch network.
BDO, as well as any large banks all over the world, offers online banking service on both on the website and smart phone application.
For those seeking an online-only solution, digital banks like ING and CIMB are worth considering. These banks offer competitive interest rates and minimal fees, though they may have more limited services compared to traditional banks.
Required Documents for Account Opening
Once you’ve selected your bank, it’s time to gather the necessary paperwork. The exact requirements may vary between institutions, but in general, you will need:
- A valid passport or government-issued ID
- Proof of address in the Philippines (e.g., utility bill, rental contract)
- An Alien Certificate of Registration (ACR) card or immigrant visa
- Passport-sized photos
- An initial cash deposit, usually ranging from 5,000 to 10,000 pesos ($85-170)
Some banks may also request a reference letter from your current bank in your home country.
It’s important to note that most banks will require you to visit a branch in person to present your documents and complete the application process, as online account opening for foreigners is not yet widely available.
Understanding Deposit Insurance
When opening a bank account in the Philippines, it’s crucial to be aware of the deposit insurance coverage provided by the Philippine Deposit Insurance Corporation (PDIC).
Unlike the FDIC in the United States, which insures deposits up to $250,000 per depositor per bank, the PDIC only covers up to 500,000 pesos (approximately $10,000) per depositor.
This means that if you plan on keeping large sums in your Philippine bank account, you may want to consider spreading your funds across multiple banks to maximize your deposit insurance coverage.
In the Philippines, especially in Manila and at tourist attractions, rows of ATMs are easy to spot.
While bank failures are relatively rare in the Philippines, it’s always better to err on the side of caution when it comes to protecting your hard-earned money.
Philippines Banking Hours and Services
Another factor to keep in mind when banking in the Philippines is the shorter operating hours compared to what you might be used to back home.
Most bank branches are open from 9am to 3pm, Monday to Friday, and are closed on weekends and public holidays.
However, many banks offer online and mobile banking services, allowing you to manage your accounts, pay bills, and transfer funds 24/7.
Some banks, like BDO and BPI, even have dedicated mobile apps for expats, making it easier to navigate the local banking system.
It’s also worth noting that some banks may require you to maintain a minimum balance in your account to avoid monthly maintenance fees. These fees can range from a few hundred to a few thousand pesos, depending on the bank and type of account.
Make sure to inquire about these charges before opening an account to avoid any surprises down the line. Banks anywhere in the world will charge additional fees and the Philippines certainly isn’t any different.
Final Thoughts
Opening a bank account is a crucial step in establishing your new life in the Philippines.
By doing your research, choosing a reputable bank, and ensuring you have all the necessary documents, you can make the process as smooth as possible.
Remember to be patient and polite when dealing with bank staff, as requirements and procedures may vary between branches. If you encounter any roadblocks, don’t hesitate to try another branch or bank – persistence is key!
With a local bank account in hand, you’ll be well on your way to enjoying all the financial conveniences and perks that come with being a resident.
Happy banking, and welcome to the Philippines!
FAQs: Banking in the Philippines
Are Banks in the Philippines Safe?
The Philippine banking system is generally well-regulated and stable. Major banks like BDO, Metrobank, and BPI are financially sound with strong capital buffers and asset quality. However, the deposit insurance coverage provided by the PDIC is relatively low at 500,000 pesos (around $10,000) per depositor per bank.
This is much less than the protection offered in jurisdictions like Hong Kong, Singapore, and the United States. Therefore, it is important for those holding significant funds to spread their money across several banks to ensure maximum deposit insurance.
While bank failures are uncommon in the Philippines, it is always prudent to be cautious when it comes to safeguarding your wealth.
What's the Largest Bank in the Philippines?
BDO Unibank, also known as Banco de Oro, is the largest bank in the Philippines by assets, loans, deposits, and number of branches. It offers a wide range of services including savings accounts, credit cards, and US dollar accounts which are popular with expats.
How Much is Deposit Insurance in the Philippines?
The Philippine Deposit Insurance Corporation (PDIC) insures bank deposits up to 500,000 pesos (approximately $10,000) per depositor per bank. This coverage is lower than deposit insurance schemes in some other countries like the United States, where the FDIC insures up to $250,000 per depositor per bank.
If you plan to keep large sums in a Philippine bank, it may be prudent to spread your money across multiple banks to maximize your deposit protection.
What's the Top Bank in the Philippines for Foreigners?
While the best bank for foreigners depends on individual needs, BDO Unibank is a popular choice among expats due to its extensive branch network, range of account options including US dollar deposits, and dedicated mobile app for foreign clients.
Other strong contenders include Metrobank, known for its foreign currency accounts and rewards program, and Bank of the Philippine Islands which has a user-friendly digital banking platform.
For those seeking a fully online experience, digital banks such as ING and CIMB may be attractive, though their service offerings are more limited compared to traditional banks. Ultimately, large global banks with a Philippine presence like Citibank and HSBC can make it easier to integrate your existing banking relationship when moving to the country.
