There are some important information a bank applicant should know before choosing a bank where he can put the money he has. At first, as a bank customer, you might be looking for the lowest initial deposit so could open a saving account with less needed money. It is good thing to choose a bank that offers low initial deposit because majority of us have little spare money.
Aside from minimum initial deposit, you should also investigate which bank has the highest interest paid for a savings account. Lately, majority of the Philippine banks give almost the same interest rate for savings account, a very low 0.25 to 0.5% interest per year. It is almost zero or negative return if you consider the inflation rate in the Philippines.
What is a Dormant Account?
Another thing that you should know about the savings account you’re applying is the dormancy period of the account so you will avoid dormant account in the future. A dormant account is an inactive account for a long period of time, usually for about two (2) years of no transaction with the bank, just only payment of interest and service charges.
How Much is Dormancy Fee?
All banks in the Philippines charge a dormancy fee for every inactive account with no activity for two years or depending on the account and bank policies. Normally, the dormancy fee ranges from Php 100 to Php 200 per month after two years of inactivity. Because of this reason, you should make at least one transaction before your account become dormant or inactive. You could see the exact dormancy fee of the savings account you have by going to the website of your bank. Next time, I’ll make a post about the dormancy period and fee for each bank in the Philippines.