With more Filipinos turning to digital banks for savings, payments and other everyday financial services, choosing where to put your money can be more complicated than simply picking the account with the highest advertised interest rate.
Beyond the rates, consumers need to consider whether a digital bank is properly licensed, whether their deposits are insured, and how easily they can access their money when they need it.
Confirm the license first
Check that the digital bank appears on the BSP’s list of supervised institutions. An attractive rate from an unlicensed entity is not a deal—it is a risk.
There are currently seven digital banks in the Philippines.
Then check deposit insurance
Confirm PDIC coverage and the current maximum coverage per depositor.
This is the question many people skip, but it is one of the most important things to understand if something goes wrong.
I chose my first digital bank based on its interest rate, full stop. It worked out, but I now think that was more luck than judgment.
Here is how to choose a digital bank with a little more rigor.
Compare the rates honestly
Look at the conditions attached to the advertised rate. Many headline rates apply only up to a certain balance cap or require customers to maintain a minimum monthly deposit.
The advertised rate and the amount you will actually earn can be very different.
Check the exit, not just the entry
How quickly can you withdraw your money? What fees apply when transferring funds out? Is there a cash-out network that is accessible to you?
Money that you cannot move easily is money you do not fully control.
Look at the boring signals
Check the bank’s published financial information, including non-performing loan ratios where these are disclosed. It is also worth looking at how the bank responds to customer complaints and service issues.
The digital banking sector has grown its deposit base faster than its earnings, making profitability and loan quality reasonable factors to consider when assessing where to keep your money.
Profitability and loan quality can offer a better picture of a bank’s underlying health than a promotional interest rate alone.
Then open it properly
Once you have chosen a bank, the next hurdle is getting the account approved.
Our step-by-step guide to opening a digital bank account covers common e-KYC issues that can cause applications to be rejected.
The bottom line
Choose a digital bank based on its license, deposit insurance and exit terms — not just its interest rate.
And if a high interest rate is what catches your attention, check the balance cap and conditions before moving your money.
