High Yield Savings Accounts

It’s the first-ever edition of the Ipon Challenge. 💰 The weekly newsletter giving you tools, information, and news you need to get smarter about your money. Our motto is to maximize what you have. You don’t have to do anything new; just maximize what you already do. 📈

In today’s edition, we’ll break down high-interest savings accounts":

1. Why you need a high-yield savings account

2. The highest interest-rate savings accounts available in the Philippines

3. How to start an account.

TLDR;

The Bottom Line

✅ If you want a secure high-yield account from a top bank, get a BDO Optimum Savings Account. 📘 Also, choose this if you need to withdraw physical cash from your account.

✅ If you’re looking for the best high-yield savings account, open a Maya Account. 💚 (Be prepared to spend Php 35,000 to unlock the full 10% interest rate.)

✅ For the highest base interest rate, open an RCBC Diskartech account. 🔷 Only accounts up to Php 48,000 can earn interest.

The content

You should probably hear this…

A high interest savings account can help your balance grow faster without any additional effort. 🤑 Most accounts offer an interest rate of anywhere from 0.10% to 0.25% per year. Our list includes options that return 5x to 10x that amount.

Applying For An Account:

Here’s a typical list of requirements for application:

• At least 18 years old

• A Filipino citizen

• Own a valid and accepted ID

• Own a smartphone

• Have the app downloaded

For The Traditional Saver: BDO Optimum Savings Account

• Interest Rate: 1.25% p.a.

• Initial Deposit: Php 30,000

• Maintaining Balance: Php 30,000

• Fees: Falling Below Minimum Balance = ₱300 will be collected if account falls below the required minimum MADB for two consecutive months; Dormant Account = Php 30 will be collected if account falls below the minimum Minimum Average Daily Balance; Php 300 per withdrawal in excess of the three free client transactions.

The BDO Optimum savings account gives tiered interest rates depending on your deposited amount.

Take note that you can only withdraw from this account free of charge up to 3 times a month - so you’re likely better off going with another option if you need liquidity.

This is the best high-interest savings account for those who don’t want to put their money in new digital-only banks.

The application process is rather quick, as you’ll only need the following to apply:

• a valid ID with your photo and signature,

• a selfie holding a valid ID,

• and a photo of 3 signatures

For the GCasher: CIMB GSave

• Interest Rate: 2.6% p.a.

• Initial Deposit: Php 0

• Maintaining Balance: Php 0

• Fees: Cash-In Over the Counter via 7-Eleven = Php 25.00

CIMB GSave is primarily a GCash product offered in partnership with CIMB. Through GSave, you can earn 2.6% of interest per year.

Like UpSave, if you maintain a minimum average daily balance of Php 5,000 for one month, then CIMB Bank will provide you free life insurance with coverage of up to Php 250,000.

Where UpSave is only accessible through the CIMB app, GSave is accessible from both the CIMB app and your GCash application.

On top of this, GSave accounts have a maximum cumulative deposit limit of Php 50,000 and a validity of 12 months, meaning no further transactions can be made once these limitations have been met.

Apart from the typical application requirements, you should also be a fully-verified GCash user.

When GSave Isn’t Enough: CIMB UpSave

• Interest Rate: 2.5% p.a.

• Initial Deposit: Php 0

• Maintaining Balance: Php 0

• Fees: Dormant Account Fee = PHP 30.00 per month starting 61st month of inactivity; Over the Counter via 7-Eleven = Php 25.00. Fees are waived via Dragonpay, PESONet, and Instapay.

CIMB Upsave offers a savings account at a 2.5% interest rate with no initial deposit nor maintaining balance.

The best part about the CIMB UpSave account is the fact that they offer free life insurance coverage of up to Php 250,000 as long as the holder maintains a minimum average daily balance of at least Php 5,000 for one month.

When You Need The Free Transfers: SeaBank

• Interest Rate: Php 0 to 250,000: 4.5% p.a; Php 250,000+: 3% p.a.

• Initial Deposit: Php 0

• Maintaining Balance: Php 0

• Fees: Up to 15 free transfers per week. Php 15 processing fee for each additional transfer.

SeaBank may be one of the newer entrants to the Filipino banking space but that has nothing to do with safety. SeaBank is a part of SEA Limited, a global consumer internet company listed on the New York Stock Exchange.

You should know that the 4.5% interest p.a. applies to users with account balances of up to PHP 250,000. For accounts over Php 250,000, a 3% interest p.a. shall apply.

To apply for SeaBank, you must meet the following requirements:

• Be a Filipino citizen or a foreigner with supporting documents

• Have the original copy of a valid government ID

• Have a proof of residential address that contains your full name, complete residential address, and date of issuance

• Have a valid SSN or TIN if you are a US citizen

A Solid All-Rounder: Tonik

• Interest Rate: 1% p.a. for Tonik Accounts; 4% p.a. for Tonik Stash

• Initial Deposit: Php 0

• Maintaining Balance: Php 0

• Fees: 2.5% of cash-in amount when depositing with a local bank debit card. 250 Php transaction fee when withdrawing with Mastercard

Tonik was founded early this decade and is the country’s first digital-only bank. Opening a Tonik account is relatively easy, too, as all you need are 5 minutes and one government ID.

You could also get a Tonik Debit card with a savings account, though you’ll need to provide a valid ID and pay PHP 300 to receive it.

When You Want Maximum Interest: Maya Savings

• Interest Rate: base interest rate of 3.5% p.a.; maximum of 10%

• Initial Deposit: Php 0

• Maintaining Balance: Php 0

• Fees: Php 15 per transaction for transfer via InstaPay and PERONet

Despite Maya potentially offering the highest annual interest returns of any other bank on this list, you’ll need to spend at least Php 35,000 to unlock the full amount.

On top of this, anything beyond Php 100,000 earns 3.5% interest p.a. Here’s a more detailed breakdown:

When You Don’t Want To Spend 35k for Maya’s 10% Interest: RCBC DiskarTech

• Interest Rate: 6.5% p.a.

• Initial Deposit: Php 0

• Maintaining Balance: Php 0

• Fees: None

Powered by RCBC, Diskartech is the first multi-lingual app in the Philippines with Tagalog, English, and Cebuano translations.

Their 6.5% interest rate is definitely the highest on this list. However, accounts have a Php 50,000 deposit limit and a maximum withdrawal limit of Php 10,000 per month.

For Rewards + Savings: GoTyme Bank

• Interest Rate: 5% p.a.

• Initial Deposit: None

• Maintaining Balance: None

GoTyme Bank is the digital banking unit of the Gokongwei Group. Its 5% p.a. Savings interest rate makes it a strong contender for the best high-yield account in the Philippines.

No mandatory minimum balances, deposit caps, or tiered interest rates exist.

GoTyme’s best use case is at Robinson’s stores. Earn 3x rewards points when using your GoTyme account at a Robinson’s partner. Rewards points are redeemable as cash.

Like other neobanks on this list, signing up for an account takes five minutes or less.

Aside from the typical requirements, here’s what else you need to open a GoTyme Bank account:

• A Philippines mobile number

• Home address

Why should you care?

Actionable Tips For You

Here are three things to consider when picking a bank account, according to Bankrate:

1. Accessibility - Many high-yield savings accounts are only digitally available. If you need to withdraw physical cash, choose the BDO Optimum Savings or RCBC DiskarTech.

2. Minimum balance requirements and fees - I hate fees. You probably do, too. Make sure to double-check minimum balance requirements and costs before opening an account. Tonik, for example, has - transaction fees for PESONet and InstaPay, whereas Maya charges 15 pesos per transaction.

3. Withdrawal limits - Savings accounts might have a maximum number of monthly withdrawals. Anything beyond that could incur fees.

Stuff Worth Sharing

The Link Lowdown

High-Yield Account Alternatives - A list of alternatives to high-yield savings accounts.

Bank Considerations - How to decide on your banking solution.

Interest rates - Business Inquirer coverage on the Philippines Interest rates.