Digital banking almost shares the same concept as online banking. But full digital banking allows you to open a bank account without going to a branch.
No long lines. No printed forms. Everything is online by registering on the mobile app.
Let’s find out how useful digital banking is in the time of COVID-19 and stay at home orders.
ING Philippines, CIMB Bank Philippines, and Maybank’s iSave digital bank are offering enticing interest rates ranging from 0.25% to 4.10% for a Regular Peso Savings account without visiting the local branch.
Digital banking in the Philippines at a glance
| ING Philippines | CIMB Bank Philippines | Maybank iSave |
| Open an account via a mobile app (iOS and Android compatible) | 3 Types of Savings Account
Open an account via a mobile app (iOS and Android compatible) |
Open an account via a mobile app (iOS and Android compatible) |
| 2.5% per annum | 0.50% – 4.10% per annum | 0.25% |
| Zero initial deposit | Zero initial deposit | Zero initial deposit |
| No minimum balance | No minimum balance | No minimum balance |
| No maintaining balance to earn interest | Depends on which type of savings account | P20,000 maintaining balance to earn interest p.a. |
| Deposit check via a mobile app | Not available | Not available |
| No ATM withdrawals | Fast Account Savings has ATM withdrawals | EMV enabled ATM for withdrawals |
*** Keep in mind that the interest rates are subject to a 20% withholding tax.
How does digital banking work in the Philippines?
Digital banking gives you access to banking services online without visiting the branch. It almost shares the same concept as online banking. But the facilitation of banking services doesn’t have to be done at any branch.
Digital banking allows you to open a savings account or avail banking products anytime, anywhere.
Online banking is possible only once you visit the local branch, fill out printed forms, and deposit money in your account.
After this process, the banks are likely to facilitate the activation of your ATM and online banking or mobile banking features. Some banks will require you to do it on your own via self-service. You can do it at your own convenience at any ATM machine.
With digital banking, you just download the mobile app of your digital bank. Fill in the digital form, upload your valid IDs, take a selfie, and once you verified your account, voila!
You already have a Peso savings account where your savings are covered by the PDIC, and the interest rate you earn per annum are subject to a 20% withholding tax.
How to open Peso savings account in a digital bank?
So, how do you open your savings account at your chosen digital bank? As of this writing, there are only two well-known digital banks that are considered “branchless:” the ING Philippines and CIMB Bank Philippines. However, Maybank, although known to have local branches nationwide, rolled out its own digital bank known as “iSave.”
The steps when opening a bank account is pretty straightforward. The process is almost the same when you explore the mobile apps of these digital banks.
Keep in mind that these digital banks offer their banking services via mobile apps. So, all you need to prepare are:
- The mobile app of your chosen digital bank
- Valid IDs (Driver’s license, passport, SSS, or any government-issued ID)
- Documents as proof of your address (credit card statement, utility bill, etc.)
Make sure you have a stable internet connection or mobile data, so you won’t be repeating the process in case you get disconnected.
Generally, the steps are as follows:
- Download the mobile app (ING PH, CIMB Bank, or Maybank2U PH iSave)
- Fill in the digital forms with your personal information and work information.
- Verify your identity and take a selfie
- Take a photo and upload your proof of identity, such as valid IDs.
- Upload your proof of address (if needed)
- Take a photo of your signature (use white paper and black ink for your signature)
- Confirm your personal information and other details
What are the key features of digital banks in the Philippines?
So, how can you enjoy such paperless application and branchless transactions from these digital banks? Here are the features of each digital bank at a glance.
ING digital bank key features
Screenshot from ING Philippines
- Fully digital registration and access of account via ING mobile app
- Earn a 4.0% interest rate p.a. (starting 01 August 2019 until 31 July 2020)
- Earn a 2.5% interest rate p.a. (starting 01 August 2020) if average daily balance is less than or equal to P10 million
- Earn a 1% interest rate p.a. (for additional balance above P10 million)
- No minimum opening balance
- No maintaining balance
- No extra fees or charges
- 24/7 customer service (via ING mobile in-app with an agent or Facebook Messenger)
- E-statements are available via ING mobile app
- Depositor’s savings are covered by the PDIC up to P500,000 per depositor
CIMB Philippines digital bank key features
Screenshot from CIMB Bank Philippines
- Fully digital registration and access of account via CIMB Bank mobile app
- Earn a 4.0% interest rate p.a. (UpSave Account)
- Earn a 0.50% interest rate p.a. (Fast Account with free Visa debit card if there’s cash-in or cumulative deposit of P5,000)
- Earn a 4.10% interest rate p.a. (GSave Account, must be linked with GCash account)
- No minimum opening balance
- No maintaining balance
- Supports bills payment (see list of merchants for fees)
- Depositor’s savings are covered by the PDIC up to P500,000 per depositor.
Maybank iSave digital bank key features
Screenshot from Maybank Philippines
- Fully digital registration and access of account via Maybank2U PH App
- Earn a 0.25% interest rate p.a. (at P20,000 balance)
- No minimum opening balance
- Zero maintaining balance
- The account comes with an EMV enabled ATM card for withdrawals.
- Depositor’s savings are covered by the PDIC up to P500,000 per depositor.
Which digital bank is for you?
If you want convenience and hassle-free experience in opening a savings account, digital banking is a good option these days as stay-at-home orders are implemented. Online transactions are better than visiting a local branch these days to avoid crowds and long queues.
Now you know how digital banking works. It’s time for some action. Start saving, start building your emergency fund. And thankfully, there are digital banks you can explore. Whether you’re after higher interest rates or you want a digital bank that supports bills payment, it’s time to adapt to the new normal by going digital.
Let us know which of these digital banks will encourage you to save more and spend less.