Do you want to get a savings account without any maintaining balance?
What is maintaining balance?
Banks offer deposit accounts to their clients. These accounts come with terms and conditions, including how much opening balance is required to open, the balance to earn interest, and the interest per year. Besides, the age of the accountholder can be a factor, which is usually the case for savings account for children.
Maintaining balance is also one of the things to look out for when opening a bank account. It is the amount of money that the banks require to be kept in the account.
Why do banks require a maintaining balance?
Banks incur costs in keeping and managing accounts. To recoup such costs, they operate by pooling deposits from accounts that would form a capital base to be made available for borrowing to individuals and businesses, for investing, and for other income opportunities.
For obvious reasons, they are unable to maximize their banking activities from accounts with no deposit or whose deposit falls below maintaining balance.
Thus, they encourage people to at least keep a certain minimum level of deposit consistently.
What happens when the deposit falls below the minimum maintaining balance?
There are consequences when deposit is than the balance required by the bank for two consecutive months:
- maintenance fee
- unable to earn interest
- account type change
- account closure
The first, and the most obvious, is that there is a maintenance fee. Most banks call it the monthly service charge. The fee depends on the bank and the type of account. It can be as low as ₱200 or higher. It is charged when the account falls below the MADB for two consecutive months.
Another possible effect is that the accountholder is not qualified to get interest. Most, if not all, of the time, the maintaining balance is either equal or less than the balance required to get interest. So when balance is less than the MADB, then it goes without saying it is also less than the balance to earn interest too.
One other result is that the account may be converted to another type. For instance, a bank account that fails to meet MADB consistently may be converted to another savings account that will be subject to a whole new set of terms and conditions. It might have higher MADB requirements, higher balance in order to qualify for interest, etc.
Lastly, monthly service charge eats away whatever deposit remains in the account. And when it falls to zero for a specified period of time, it might be
Average daily balance
The amount is determined by averaging end-of-day balances of the past 30 or 31 days of the month. Thus, it may be referred to as monthly average daily balance (MADB). It may not matter how much deposit the account holds in the morning. What is being tracked is the deposit at the closing of the day.
For example, the deposit is ₱10,000 at 9:00 a.m. At the end of the day, it is down to ₱1,500. The bank records ₱1,500 as the balance of that particular day.
How is average daily balance computed?
So how is average daily balance determined?
Generally, the average daily balance means that all balances in each of the day in a month are summed up and divided by the number of days. And the result must be equal or more than the required MADB. To better understand, let’s look at two imagined scenarios.
Scenario 1: Say that the account needs to maintain MADB of ₱2,000. However, the daily balance on the account is only ₱1,500 for the first three weeks of the month. However on the last ten days of the month, the account receives a deposit of ₱1,600 for a total balance of ₱3,100.
|MADB||62,500 ÷ 31 days||2,016.13|
This scenario shows that it is possible to go on days to fall below MADB, for as long as the other days of the month have daily balances that can address the shortfall.
Scenario 2: The account requires an MADB of ₱2,000. The daily balance on the first three weeks is ₱2,500 and ₱500 only on the last ten days. The account’s MADB is ₱1,854.84.
|MADB||60,000.00 ÷ 31||1,935.48|
The above shows that even if on most days the balance is higher than MADB, it is possible to get charged with the monthly service charge for when the entire month’s balance averages below MADB.
The scenarios above are hypothetical and computations may not reflect actual calculations applied by your bank. It is best to check the terms and conditions of the account.
What follow next are the savings account offered by major banks that do not have maintaining balance.
AUB Starter Savings
The AUB Starter Savings is a savings account that has no maintaining balance. It also doesn’t have initial deposit requirement. The balance to earn interest is set at ₱1,000.
In addition, the interest is credited to the account every three months. Transactions are kept in electronic statement of account (e-SOA), while funds can be accessed via ATM, internet and mobile banking (which requires being enrolled into the Preferred Online Banking).
BANK OF COMMERCE SIKAPPINOY
Bank of Commerce SIKAPPINOY is another savings account that is designed for Filipinos working overseas. With No required starting capital to open an account, it also doesn’t have any required maintaining balance. Keeping at least ₱5,000 in the account makes it eligible to earn interest.
It comes with Sikap Pinoy customized debit card. It can be used in making payments online and cashless shopping. Accountholders have access to the account via internet banking, and they can access their funds through BancNet, Megalink and ExpressNet ATMs located nationwide.
BPI Padala Moneyger
BPI Padala Moneyger allows overseas Filipino workers (OFW) the power to send money. Their required maintaining balance is waived for as long as, according to the bank, there are four remittances recorded in a year. In order to earn interest, the account must contain at least ₱5,000.
In addition, there is no initial deposit. No fees on withdrawal as well. Account can be accessed and managed through the BPI Mobile app. To open an account, just visit any BPI or BPI Family Savings Bank, bring at least one (1) valid ID card that bears photo and signature and a proof of remittance.
A proof of remittance can be any of the following: a statement of remittance transaction such as receipt from remittance centers, pawnshops, etc; work contract or visa or work permit or Overseas Workers Welfare Administration ID or certificate from the Philippine Overseas Employment Administration or from ODDOS; a bank statement showing remittance; or referral from the bank’s department responsible for overseas accounts.
CHINA BANK Overseas Kababayan Savings
CHINA BANK Overseas Kababayan Savings is an peso-denominated account where initial deposit and maintaining balance requirements are waived. The balance to earn interest is also quite lower compared to other similar products in the market, which is at least a balance of ₱1,000.
The account is created for the banking needs of OFWs. They can save and either send or receive remittance more securely and conveniently. Moreover, access to the account is made possible via the ATM card and transactions are recorded on the monthly statement.
CIMB UpSave Account
CIMB UpSave Account is a high-yield deposit account from the digital bank CIMB. It is open to Filipinos who are at least 18 years old and older, have a mailing address and active mobile contact details, and at least one valid primary identification card.
One can open the account without any starting capital, and it remains open even with zero maintaining balance. In addition, there is also no required balance to earn any interest. And the interest is paid out each month.
Moreover, the accountholder (between the ages of 18 and 64) is eligible to a free life insurance for as long as the account holds a minimum average daily balance of ₱5,000 of the past three months. The coverage is up to ₱250,000.
CIMB Fast Plus Account
CIMB another savings product offering is the Fast Account. The Fast Account does not require any initial deposit. There is also zero maintaining balance. Zero fees to be charged every year, and zero balance required to earn interest. It comes with a few policies: deposit limit of ₱100,000, the account is valid only for 12 months, and no remittances are accepted into or out of the account.
The accountholder can upgrade to Fast Plus Account when the deposit reaches ₱100,000, the account is considered verified, and delivery address is confirmed. The upgrade process, such as submitting the needed documents, are done completely online.
What are the benefits of upgrading? A Visa debit card, which can be used for withdrawal and paying at point of sale or online shopping, can then be made available for release and delivery. More than that, the deposit is eligible to earn higher interest per annum.
DBP EC Card Account
The EC Card Account of Development Bank of the Philippines is a deposit account that requires no initial capital. The accountholder only needs to save at least ₱500 daily average balance in order to qualify to earn interest. In addition, the account has no maintaining balance.
Moreover, it comes with a debit card that can be used for cashless payments. It also offers the flexibility to withdraw funds over-the-counter at any branches of DBP located across the country.
To open, one must fill out the Customer record form and submit at least one valid identification card and a 1×1/passport-size photo.
GCASH GSave Account
The GCASH GSave Account account gives out higher interest rate than most bank accounts offer. It is powered by CIMB Bank. To open the account, depositors can download the GCash app, activate account, and submit at least one valid ID.
However, the account has several restrictions. No transactions are accepted beyond 12 months. No more deposits are allowed when the balance reaches ₱50,000. In order to lift the restrictions, one can upgrade by verifying their account by going through biometric verification.
There is zero maintaining balance, zero initial deposit. Interest is paid out every month. And once the account is upgraded, a free life insurance is given for up to a maximum of ₱250,000. To qualify, the deposit must be at least ₱5,000 minimum average daily balance.
ING Savings Account
The ING Savings Account is another high-yield deposit product. Offered by the digital bank ING, it offers superior yearly interest. It also boasts of no opening balance, no maintaining balance, and no balance required to earn interest. Application is done online.
In order to get started, one must have a valid proof of address, at least 18 years old Filipino or Philippine resident, and holder of any one of the following: passport, driver’s license, and UMID. Also required are a valid mobile number and email address.
Maybank offers the online-only deposit account that has no opening balance and zero maintaining balance. Accountholders can get started without paying a visit at any of their branches located nationwide. Deposit and transactions can be managed through the mobile app.
The account allows the accountholder to enjoy special promos on interest rates that are higher than other bank’s offerings. Besides, it comes with an EMV debit card which can be used to access funds from any of their eligible ATMs in the country without any charge.
Funds are accepted not only through over-the-counter, but also through fund transfers from other banks, GCash, and participating outlets such as 7-Eleven, RD Pawnshop, USSC, etc.
The Metrobank OFW/Remittance is designed for those who are working abroad and the families that they leave behind. The account comes with either an ATM card or a passbook. On top of that, it requires no opening balance and no maintaining balance.
According to the bank, it is recommended for overseas Filipino workers. They can send money through the bank’s partner remittance centers to their relatives back in their hometown in the Philippines.
This deposit account has some requisites. A “foreign inward” remittance must be recorded within 12-month period. Or else, it gets converted to a regular account where a different set of terms and conditions apply.
PNB TAP Mastercard Account
The PNB TAP Mastercard Account is one of the accounts available today that can be opened with no initial balance and no maintaining balance. The depositor only needs to have ₱10,000 as minimum daily balance to earn interest.
What’s more, it comes with “Paypass-enabled” debit Mastercard. It can be used to get money from your account and view outstanding balance. Additionally, it can be used as a form of cashless payment wherever Maestro or Mastercard is accepted.
For the account to be created, one has the option to check the bank’s website and download the forms. After filling out the forms, they can drop by any of the branches nationwide. Once the card is issued, its PIN must be set up. Enrolling online to access the account is also a recommended option.
RCBC iSave is a virtual account. t is quite easy to apply. Application can be made on their website through their online form, or one has the option to visit the nearest branch. One government-issued identification card is required.
More than that, it has no opening balance required to get started. It also doesn’t have any maintaining balance. And it requires only ₱5,000 balance to be able to earn interest.
Once started, some of the benefits include tiered interest and insurance. The tiered interest provides higher interest rate on higher balances. Meanwhile, the free insurance coverage includes a free personal accident and hospitalization benefit.
Robinsons Bank Corporation Simplé Savings
The Simplé Savings of Robinsons Bank Corporation does not have any maintaining balance required. The initial deposit is only ₱100, and the depositor pays ₱150 for a debit card to be issued. In addition, the balance to earn interest is ₱500. Take note that the maximum balance on the account is set at ₱45,000.
A virtual and physical card are available. More than that, it can be used to pay off purchases made online. The accountholder also is given access to the online portal to be able view and monitor transactions.
To open the account, one has to download the mobile app. The app is available on iOS and Android platforms. Simply fill out the forms and submit a selfie and a photo of the valid identification number. Make sure that there is a valid mobile number for verification purposes.
UNIONBANK Personal Savings Account
With zero initial deposit and no minimum average daily balance, the UnionBank Personal Savings Account only requires ₱10,000 for the account to earn interest.
The deposit account also comes with a Visa EMV debit card. It can be used in cashless transactions worldwide where Visa is accepted. In addition, it can be used in UnionBank and Bancnet ATMs in the Philippines, as well as VISA ATMs abroad.
There is annual fee of ₱350, which is waived on the first year of account opening.
UCPB U-remit ATM Savings Account
The UCPB U-remit ATM Savings Account is designed to address the needs of overseas Filipino workers. It is suitable for those who are working in other countries and sending money to their loved ones back at home.
There are many variants to choose from, three of which (ATM Savings Account, Peso Passbook Savings Account, and US Dollars Savings Account) do not have any maintaining balance. The savings type requires no initial deposit, the peso passbook type requires at least ₱100 opening balance, and the dollar type requires at least USD 100. Meanwhile, the U-remit Peso Checking Account requires an initial deposit of ₱2,500 and a maintaining balance of ₱2,500.
To open, the accountholder can present any one of the following:
- Working visa
- Employment Pass
- Resident ID issued by host country
- Philippine Overseas Employment Agency (POEA) or OFW ID with picture
- Overseas Workers Welfare Administration (OWWA) ID with picture
- Unexpired overseas employment contract
- Overseas employment certificate issued within the last six months
There are also other UCPB accounts that do not have any maintaining balance.
- UCPB SSS Pensioner’s Account
- UCPB AFP Pension Savings Account (ATM)
- UCPB PVAO Pension Account
- UCPB AFPSLAI Pension Account