Ever wondered which savings option will actually make your money grow in the Philippines?
Many consider owning a savings account to already be a big step in securing their financial future. As BusinessMirror mentions, some Filipinos hold the perception that financial institutions are a little out of their reach or untrustworthy. But as the modern financial sector of the country evolves, more and more financial institutions have made it easier for the Every Filipino to access the services they need.
If you’re looking to open a savings account, it helps to understand the different types. No two are exactly alike. We hope to clear things up for you in this article.
3 Common Savings Types in the Philippines
Most people don’t realize that there are a few ways you can save your money. Here are three of the most common in the Philippines.
1. Savings Accounts
Now, this is the most common type. We’re sure we all started our financial independence journey here, whether it was a passbook account our parents made or an app-based account from a digital financial app.
A traditional savings account lets you deposit money safely and withdraw it anytime. It’s liquid, simple, and easy to manage. Now that there’s more digital financial services, you have a dizzying number of options to choose from. The difference between traditional and digital savings often lies in their interest rates:
Traditional banks often offer 0.125%–0.55% p.a. You may have heard modern financial advisors discouraging putting your money in these kinds of accounts because interest barely keeps up with inflation.
Digital financial services can offer interest rates that begin at around 3%. Right there, you’ll see how digital solutions can help you with your savings goals. Not only that, but online savings in this way are often easily accessible, so you can withdraw your money at any time.
Best for: Emergency funds and day-to-day transactions
Related article: What is Atome Savings?
2. Time Deposits
Where a savings account can be easily accessible, time deposits are the complete opposite. You deposit your money and see it again later—way later. It could be 30 days or even 5 years. The interest rate scales with the time; longer tenor, higher returns.
Why would you want this? A popular reason is its predictability. The other reason could also be its main drawback: your money will be inaccessible for a period of time. While that could be helpful to stop, say, dipping into your savings for impulse buys, that also means you’ll have to rely on other sources for unexpected expenses. These accounts also tend to have early withdrawal fees that affect your interest and returns.
Some digital banks also offer time deposits that can reach 7% or higher, depending on limited-time promotions. That said, these would still require you to leave your money inaccessible until it matures or you decide on an early withdrawal.
Best for: People with extra funds they won’t need soon and who want the security of fixed returns.
3. Pag-IBIG MP2
The Pag-IBIG Fund’s MP2 program is a voluntary savings program for Pag-IBIG members to grow their savings over a long period of time. It’s government-backed, meaning the risks are low. The program’s returns have also historically beaten bank rates, with 2024’s return rate reaching 7.10%.
When you sign up for the program, you have the option to receive your dividends annually or let them compound til maturity. The catch is that withdrawing before it’s matured can return your returns.
Best for: Long-term savers seeking higher yields without venturing into high-risk investments.
| Account Type | Interest range | Liquidity | Best for |
| Traditional savings account | 0.125%–0.55% p.a. | Very liquid | Emergency funds and day-to-day transactions |
| Digital savings account | Begins at 3% | Very liquid | |
| Time deposit | 0.125% – 7.5% | Not very liquid | People with extra funds they won’t need soon and who want the security of fixed returns. |
| Pag-IBIG MP2 | As of 2024, 7.10%. This increases yearly | Not very liquid | Long-term savers seeking higher yields without venturing into high-risk investments. |
What to Consider When Choosing Savings Accounts
When you’re considering different savings accounts, there’s no one better than the other; each savings type has strengths and weaknesses. It all depends on your lifestyle and the financial future you’re building for yourself. That said, here are a few factors you should consider before depositing any amount of money.
Yield vs. Flexibility
Savings accounts are unbeatable when it comes to flexibility. You can deposit and withdraw at any time without penalties. That’s why plenty of people choose it to store their emergency funds or money they may need at short notice.
The trade-off? Yield. Many traditional savings accounts barely earn enough to offset inflation, meaning your money’s buying power might shrink over time. That’s where digital-first savings products come in. They aim to bridge the gap by offering higher interest without sacrificing access.
Risk vs. Security
The Philippine Deposit Insurance Corporation (PDIC) recently raised its coverage to ₱1,000,000. That means that if—knock on wood—something bad happens to the bank or you encounter a fraud attempt, your deposits are protected up to that limit.
This safety net is why savings accounts are considered low-risk. But because the risk is low, the returns are also modest compared to investments like stocks or mutual funds. For many people, this trade-off is worth it, especially for money they can’t afford to lose.
Is there a way to earn higher interest without losing flexibility? Yes. What you may be looking for is Atome Savings.
Why Choose Atome Savings
Out of all the available savings accounts that you can apply for, here are a few reasons why you should consider Atome Savings:
- Competitive yield of 3.25% p.a. Interest*, paid daily. You can literally see your money grow every morning.
- No lock-in and minimum deposit. You can withdraw at any time, without penalties. It’s great for both planned and unplanned expenses.
- Zero fees on your Atome Card and Cash repayments. You won’t have to deal with any processing or transfer fees if you’re an avid Atome Card or Atome Cash user already. Just use the money stashed in your Atome Savings account to pay in one go. No fluff at all.
- Easy application. There are no additional documents that you need. You can apply directly through the Atome app, just like you would to apply for your Atome Card.
Find the Savings Type that Suits You
Although the list above might not have covered every single savings type available on the market, at the end of the day the biggest takeaway is this: the best savings type is the one that fits your financial goals and your lifestyle. If you’re building a nest egg you can’t touch for years, the MP2 or a time deposit may suit you.
You can also quickly realize that your money can work for you if you put it in the right place. For a smart and accessible place to start, you might want to try Atome Savings. Don’t miss out on the chance to grow your savings daily and repay your Atome Card easier: just scan the QR code on screen to download the Atome app and sign up for Atome Savings.
