Why You Should Consider Dollar Savings Account and Find Out Which Banks Offer It

When it comes to savings account, peso will always be your number one choice. After all, it is convenient, easy to withdraw, and there is no need to go to a money changer. Aside from your peso savings account, there are number of reasons why you should consider opening a dollar savings account too:

  • There is no dormancy fee, although you need to confirm this with your bank of choice since they might have a separate policy on dormant accounts.
  • You have the option to withdraw the funds in peso or dollar currency, whichever is more convenient for you and your family. This is ideal because you have the option to take advantage of the exchange rate by holding the money first or withdraw it.
  • The account is exempted from tax, although you still need to pay for the withholding tax of 7.5%.
  • Remitting money to your family back home is easier and more convenient. Local banks have international partners abroad, thereby making it safer to transmit money back home.
  • Savings are diversified because you get to earn interest in dollars.

The next question is this: what banks offer Dollar Savings Account with perks for OFWs?

BDO Dollar Savings

  • Passbook
  • Minimum initial deposit: $200.00
  • Minimum Monthly Average Daily Balance: $500.00
  • Minimum balance to earn interest: $500.00
  • Gross interest rate per annum: 0.25%

BPI Foreign Currency Savings

BPI has several foreign currency products you can choose from.

Express Dollar Savings (ATM) Dollar Savings with Passbook Maxi-Saver with Passbook Pamana Savings with Passbook and Life Insurance Pamana Padala
Required Initial Deposit $500 $500 $2,500 $1,000 $500
Required Monthly ADB $500 $500 $2,500 $1,000 Waived, as long as there are 4 remittances in a year
Required Balance to Earn Interest $500 $500 $2.500 $1,000 $500
Interest Rate per Annum 0.25% 0.25% Up to $9,999 – 0.375% $10K to $19,999 – 0.5% Above $20K – 0.625% + .5% if no withdrawal in a month 0.125% 0.125%

Metrobank’s MetroDollar Savings

  • Minimum initial deposit: $500.00
  • Maintaining balance: $500.00
  • Balance to earn interest: $500.00
  • Gross interest rate per annum: 0.125%

China Bank Foreign Currency Savings 

  • Minimum initial deposit: $500.00
  • Maintaining balance: $500.00
  • Balance to earn interest: $1,000.00
  • Gross interest rate per annum: 0.25%
  • Can be withdrawn in US or Peso currency

Security Bank US Dollar Savings Account

  • Passbook
  • Minimum initial deposit: $500.00
  • Maintaining balance: $500.00
  • Balance to earn interest: No info specified
  • Gross interest rate per annum: 0.25%
  • Withdraw in US or Peso currency

EastWest Bank US Dollar Savings Account

  • Minimum initial deposit: $200.00
  • Maintaining balance: Not specified
  • Balance to earn interest: $500.00
  • Gross interest rate per annum: 0.25%

PNB Dollar Savings Account

  • Passbook
  • Minimum initial deposit: $500.00
  • Maintaining balance: $500.00
  • Balance to earn interest: $1,000.00
  • Gross interest rate per annum: 0.1%

Asia United Bank Preferred Dollar Savings

  • Passbook
  • Minimum initial deposit: None
  • Maintaining balance: $500.00
  • Balance to earn interest: $500.00
  • Gross interest rate per annum: 0.125%

RCBC Foreign Currency Deposit 

  • Passbook
  • Minimum initial deposit: $500.00
  • Maintaining balance: $500.00
  • Balance to earn interest: $1,000.00
  • Gross interest rate per annum: 0.125%

Bank of Commerce Dollar Savings Account

  • Passbook
  • Minimum initial deposit: $200.00
  • Maintaining balance: $200.00
  • Balance to earn interest: $200.00
  • Gross interest rate per annum: Not specified
  • Withdrawal via dollar only

UCPB Dollar Account

There are two options:

Remittance Dollar Savings Account US Dollar Savings Account
Minimum Initial Deposit $100.00 $500.00
Maintaining Balance None $500.00
Balance to Earn Interest $500.00 $1,000.00
Gross Interest Rate per Annum Not specified Not specified

If budget allows, consider opening a Foreign Currency Savings account as part of your quest for financial security. The return may not be as big as what you can earn from stocks or business, but it could definitely add something to your Rainy Day fund. Just make sure you choose the right bank for you.