One of the best things you can do for your finances is to have different bank accounts to manage your saving and spending habits. It also helps you keep track of your finances – how much you are spending and where it’s going.
Besides, opening a bank account is hassle-free because you can do it using a mobile app if you apply on digital banks. Meanwhile, some traditional banks offer an online application, which doesn’t require you to visit a branch.
Different accounts can offer various benefits, depending on your needs. Here are five types of bank accounts you should consider opening this year.
A high-interest rate bank account for long-term savings
A high-interest savings account offers higher rates than ordinary savings accounts. You earn more from the annual interest rate. If you’re planning to save for retirement or savings for the family, then this type of account is the best option.
You need to separate retirement funds and long-term savings from your regular savings account so you won’t be tempted to withdraw when you need cash. It’s better to get one with a passbook instead of a debit card, so it’s hard for you to access your money.
High-interest rate savings accounts reward you by increasing the interest rate if you consistently deposit more money, maintain a specific amount, or have zero withdrawal transactions. You may check the following if you wish to open an account:
- Security Bank Premium Build-Up has P50,000 opening and maintaining balance and offers 0.50% per annum. It comes with a passbook but will only provide a Mastercard debit card upon request.
- ING Philippines lets you open an account via its mobile app without an opening or maintaining balance. It offers 2.5% per annum regardless of any amount you save as long as it’s below P20 million.
- CIMB Bank GSave savings account offers 2.6% per annum, and you can open an account using its mobile app.
Savings account for short-term goals
Saving for something you want to buy in the next few months? Whether it’s a new appliance, home renovation, birthday celebration, or holiday vacation, then having a separate savings account for a short-term goal will help you keep track of how much you’re saving every month.
It will be easy for you (and your partner) to decide how much money you want to deposit, whether it’s daily, weekly, or monthly depending on your budget and income. You may withdraw the funds anytime as long as you don’t exceed the balance of your account to avoid penalty fees.
Find a savings account with a low maintaining balance, so you don’t have to think about penalty fees upon withdrawal. Moreover, make sure you can access your account via online banking, so it’s easy to track transactions whenever you transfer money. Some of the accounts are worthy of checking out with minimum maintaining balance:
- BDO Peso saving account has only P2,000 maintaining balance and comes with an ATM card. You can apply online and confirm your application with a banking officer via Zoom. But you need to visit the branch to make a deposit.
- UnionBank offers a Personal Savings account that doesn’t require an initial deposit or maintaining balance. It offers 0.10% p.a. want to earn interest, but you need to keep P10,000. There’s a P350 annual fee, and it comes with a debit card, online banking, and mobile banking features. The annual fee is waived for the first year, and you open an account online.
- RCBC Basic savings account only requires a minimum deposit of P100 without maintaining balance and interest and comes with an ATM card.
An online bank account for online purchases and transactions
When you have an online bank account, you can withdraw cash at any time through an ATM or counter. Moreover, it’s easy to pay for e-commerce transactions and bills using a debit card.
An online bank account comes with these benefits, and you don’t need to worry that you will forget certain transactions because you can also schedule payments for monthly bills and recurring transactions.
Some banks even offer added security like locking the debit card if it has been reported missing (and via text) or will send a notification to monitor suspicious withdrawal and online transactions. Here are some of the savings account with online banking features:
- UnionBank’s personal savings account provides the convenience you need when paying online transactions and bills. You can create and confirm transactions anytime using its mobile app.
- CIMB Bank and ING Bank are also online banking-friendly. Since they are digital banks, you can easily access your account on your phone or computer anytime.
A bank account for health and insurance expenses
Health insurance is a necessity these days, and having a separate bank account to pay for your health expenses will help you track what you have paid. You can also use it to pay for your premium life insurance before it expires.
Setting a portion of your income for health and insurance expenses is the best gift you can give to yourself, so in case of emergency, you’re confident that you can pay your hospital bills and medications without applying for a personal loan.
This bank account should also let you claim benefits from PhilHealth and SSS, so it’s easier to manage the money spent on premiums, claims, and other related costs.
You may choose an account with a passbook and online banking feature so you can easily track your savings. Some banks like BPI, Metrobank, and Security Bank, to name a few, affiliated with insurance companies, can set up auto-debit arrangements to pay your insurance on time.
- You can open BPI savings account with an initial deposit of P3,000, and it comes with an ATM debit card and online banking features. If you have health or life insurance on BPI AIA, you can use your account for auto-debit arrangements of premium payments. Upon approval, the bank will remove the maintaining balance.
Checking account for everyday transactions and easy access to money
You may consider opening a checking account to pay bills, rent, car loan, and business-related transactions. You may open checking accounts with any bank of your choice, whether it’s an interest-bearing account or not.
Most checking accounts also come with debit cards that can be used just like credit cards anywhere Mastercard or Visa is accepted for your everyday transactions and online shopping.
If you do not plan to save large amounts of money and you need to withdraw regularly or opt for direct deposit, having a checking account is beneficial. It will allow you to manage your expenses effectively while giving you easy access to your earnings.
- EastWest Bank offers a regular checking account with a minimum initial deposit of P5,000 that comes with a Visa debit card to access your funds quickly.
- BDO also offers a Peso checking account that requires a minimum initial deposit of P5,000 and a maintaining balance of P5,000.
- UCPB has the lowest initial deposit requirement for opening a checking account. For as low as P1,000, you can open a CheckStarter account.
Depending on the types of goals and habits you want to foster in 2022, there are five different accounts worth considering opening this year. Whether it’s long-term savings or short-term goals like saving up for big purchases or family vacations, we hope that this blog has helped you decide which one is best for you.
Interest rates vary by institution, so be sure to research before choosing one. You don’t have to open five accounts simultaneously, but you can select one or two accounts that you think should be your priority this year.
Let us know which one you need to prioritize this year in the comments below!