Tonik Digital Bank Peso Savings Account – MoneySmart Review 2022

Tonik Digital Bank Peso Savings Account – MoneySmart Review 2022

What if we told you that there is a bank where you could open an account without having to deposit a single peso? What if this bank offers some of the competitive interest rates in the country?

If this sounds too good to be true, then you’re in for a surprise because Tonik digital bank is real, and it’s one of the most promising digital banks in the Philippines today.

If you’re familiar with ING Philippines and CIMB Bank, you know that you don’t have to visit a branch to open a savings account these days, and it’s the same as Tonik.

So, let’s take a closer look at Tonik and see how it stacks up against the existing digital banks and commercial. Let’s compare the interest rates of peso savings accounts per annum, features, and more.

Tonik digital bank Peso savings account features

Type of Account Peso Savings Account
Interest rate 1.00% to 6.00% per annum
Initial deposit  Zero
Minimum balance required None
Maintaining balance required to earn interest None
Dormancy fees None
Check deposit Not supported
ATM withdrawals Yes
ATM card  Yes

Tonik is a neobank that’s 100% branchless or a digital bank that allows depositors to create Peso savings and time deposit accounts through its mobile app.

Depositors can download the mobile app available on App Store or Google Play Store, and the registration, verification, and confirmation of the account are done online.

Tonik doesn’t require you to have a minimum initial deposit. After registration and verification, you may top-up your savings account through local bank transfer, GCash, CliQQ, and more.

Tonik offers 1.00% interest p.a on a Peso savings account. It comes with a virtual and physical debit card that you can use for your online and in-store purchases. The virtual debit card lets you lock and unlock the card for additional security. Moreover, you can adjust the card daily limits of your online and physical payments up to P250,000.

If you want to have a physical debit card, the Tonik Mastercard costs P300. However, the caveat is that when you withdraw funds from ATMs, there’s a P250 withdrawal fee.

To add funds, you can use the PESONet, wherein you can transfer funds from your other banks for free. On the other hand, you may also link a new card from other banks to directly add money. Online top-up transactions are also available via GCash, BDO Direct, BPI, and UnionBank.

You may also use over-the-counter options such as CLiQQ, 7-Connect, Cebuana, Mhuiller, and SM Business Center – the maximum amount you can top-up is up to P5,000 for each partner. You also need to pay P25 for the transaction fee.

Tonik Peso savings account interest rate vs. other banks

Tonik Bank offers 1.00% interest per annum for the regular Peso Savings account. If you put your cash in a Stash, you can earn up to 4.5% per year, which means you need to hold your money for a specific term.

There are two kinds of Stashes: Group and Solo. When it comes to group stash, you can grow your money with other family members and friends, while the Solo is your personal stash where you can just save money according to your financial goals.

The Stashes are simply categorized savings accounts where you put your money and divvy it into five stashes: Emergency, Vacation, Tuition, New Ride, and Game Console. The more you keep your money for the long term, you earn the interest rate per year.

Interest rates are subject to 20% withholding tax, and your money is insured under the Philippine Deposit Insurance Corporation (PDIC) up to P500,000 (per depositor)

The savings account interest rate is higher than the commercial banks offer but lower than ING Philippines and CIMB Bank rates. Let’s compare the interest rates below.

Bank Interest Rate (per annum) Minimum Initial Deposit (depending  on the type of Savings Account)
Tonik Peso Savings Account
  • 1.00% (Regular)
  • 4.00% (Stashes)
ING Philippines
  • 2.50%
CIMB Bank Philippines
  • 0.50% Fast & Fast Plus Account
  • 4.00% UpSave Account (promo until Feb 28, 2022)
  • 2.60% GSave Account
Bank of Philippine Islands (BPI)
  • 0.25% to 0.625%
P100 – P100,000 +
Banco De Oro (BDO)
  • 0.25%
P100 – P30,000 +
Security Bank
  • 0.10% to 0.40%
P5,000 – P50,000 +
China Bank Corporation
  • 0.125%
P2,000 – P20,000 +
  • 0.60% to 2.04%

What are the requirements to open a Tonik Peso savings account

Opening a Tonik bank account is super easy. All you need to do is download the Tonik app and follow the instructions on registering your account.

You can open an account if you’re

  • 18 years old and above
  • A resident of the Philippines (Filipino citizens, foreigners with permanent residence, and OFWs)
  • A Filipino national diplomat

Prepare the following documents:

  • One (1) government-issued ID (e.g., driver’s license, passport, Unified Multipurpose ID)
  • One (1) document as proof of address (e.g., recent utility bill, credit card statement, certification of voter’s registration, driver’s license, condominium dues bill)

You can watch this video and follow the step-by-step guide on getting started.

Other things you need to know about Tonik bank

Aside from opening a savings account, you can open a time deposit account within the mobile app and earn up to 6.00% p.a. Whether you want to save for the long-term or short-term, there’s a corresponding interest rate you can earn depending on the term.

Here are the interest rates p.a. as of this time of writing:

  • 6 months = 6.00% p.a.
  • 9 months = 4.50% p.a.
  • 12 months = 4.75% p.a.
  • 18 months = 5.00% p.a.
  • 24 months = 5.25% p.a.

According to Tonik’s calculator, if you save P100,000 and hold it for six months, you earn P2,975.34 before taxes.

tonik digital bank 6 percent interest rate per annum
[Image credit: Tonik website]
As of this time of writing, Tonik doesn’t support bills payment, so the only thing you can do for now is to create a savings account, top it with funds or send money to other banks, and take advantage of the high interest on time deposit accounts if you wish to grow your money this year.

Final thoughts

If you plan to open a savings account virtually, Tonik digital bank makes that possible without visiting a branch. You can save, send, or grow money through their mobile app. Enjoy the essential banking services that you need at the comfort of your home.

1.00% p.a. interest rate for a savings account is relatively lower than what ING Philippines and CIMB Bank Philippines offer. However, for time deposits, earnings up to 6.00%, it’s an attractive offer (and the highest in the market as of this writing), encouraging you to save more.

What do you think of Tonik digital bank? Are you delighted with the interest rates they offer? Let us know in the comments below.