As a tropical paradise of over 7,000 islands, the Philippines has drawn a large number of expats who are drawn to the country's stunning landscapes, relaxed way of life and lower living expenses. Whether they're spending their retirement years in the country or there on an extended sojourn, many expats often ponder the advantages of having a bank account in the country to ease access to funds. Here, we unravel the process of opening a bank account in the Philippines.
The Philippines banking scene mirrors that of the U.S., supporting big international banks, national banking entities and smaller, rural banks. Expats usual picks are national banks like the Philippine National Bank, Metrobank, and Bank of the Philippine Islands or global establishments such as Citibank, Bank of America and HBSC. It is generally recommended that expats steer clear of small, rural banks due to their limited services and lack of stability.
Online banking is easily accessible via most major national and international banks. Physical banks usually operate between 9 a.m. and 3 p.m. on weekdays and are closed on weekends and holidays. The official currency of the Philippines is the Philippine Peso (PHP). Cash comes in denominations of 20, 50, 100, 200, 500, and 1,000 PHP. One peso is equal to 100 centavos, and coins are distributed in 10, 5, and 1 PHP, and 50, 25, 10, and 5 centavos.
To open a bank account in the Philippines, one must visit the bank personally armed with several identification papers. While different banks may require specific documents, most of them will ask for an Alien Certificate of Registration Identity Card (ACR I-Card), a microchip-based identification card the size of a credit card.
All foreign nationals holding immigrant and non-immigrant visas – including holders of a Temporary Visitor’s Visa – who have been in the country more than 59 days must apply for an ACR I-Card. Applications can be lodged at the main office of the Bureau of Immigration or at one of its field offices around the country. The card costs $50, plus P500 (around $60 in total). In some instances, it may be possible to obtain an account without an ACR I-Card, but you may need to have a meeting with the bank manager before an account can be given the green light.
Other necessary documents include a passport or another form of photo identification, a passport-sized photo of yourself and proof of your residence (like a recent utility bill or rental agreement). Banks also mandate a minimum deposit to open the account – for instance, the Philippine National Bank requires a deposit of P3,000 (roughly $60) for a debit savings account.
A reference from your home country bank might also be required by some Filipino banks. Either the Philippine bank will get in touch with your bank directly or they may ask you to provide a written certification from your bank. If you were not referred by an existing client or employee (which is usually how it works), your account may be placed on hold until the reference check is completed.
By contrast, in the U.S., any money you deposit at an FDIC-insured bank is automatically safeguarded by the FDIC (Federal Deposit Insurance Corporation), established in 1933 as an answer to the series of bank failures that occurred in the 1920s and early 1930s. This coverage guarantees the quick recovery of insured deposits if a bank fails, with an insurance limit of $250,000 per depositor, per account.
Philippine Deposit Insurance Corporation offers a similar scheme, but with much lower protection coverage for depositors. In the Philippines, your deposits are insured up to P500,000 (approximately $10,000), which covers the total amount of money you have deposited in a bank, not each individual account. So, even if you have multiple different accounts, you're only insured up to a maximum of P500,000.
For expats and visitors, there are numerous banking options available in the Philippines. Large national and international banks, including CitiBank and HBSC, are favored choices for expats. Some banks like Citibank offer free withdrawals from any ATM in the Philippines (and over 13,000 Citibank ATMs globally) and online banking, making finance management a breeze. But always read the small print to get a handle on any fees that may apply. For instance, Citibank charges P500 a month if your average daily balance falls below P500,000.
For further insight into life in the Philippines, refer to articles like 'Retiring In The Philippines: Pros & Cons,' 'Retire In the Philippines With $200,000 Of Savings?' and 'How To Plan Your Retirement In The Philippines.'
For U.S. citizens considering a Filipino bank account, remember that you'll need to file the IRS form known as the FBAR. For more on that subject, see 'Should You Open A Foreign Savings Account?'.