The COVID 19 pandemic has introduced us to a lot of digital applications that offers convenience especially if you are in to online shopping and online bills payment. Truly, the popularity of digital banks emerged during the pandemic since it offers better, if not the best, quality that we as consumers can enjoy.
In the Philippines, there are over 14 Bangko Sentral ng Pilipinas (BSP) regulated digital banks such as ING Philippines,UnionBank Online, BPI Online and BPI Mobile, BDO Online Banking and BDO Personal Banking App, LANDBANK Mobile Banking Application, Metrobank Mobile Banking, Security Bank Online, OCTO by CIMB Bank, GCash Save Money (GSave), MayBank ISave (accessible via MayBank2U app), Diskartech, Komo by EastWest, Overseas Filipino Bank and Tonik.
In this article, we will look into the features of 3 most popular digital banks so that you will have an idea on what bank you might want to invest your money in.
1. CIMB Bank
CIMB Group Holdings Berhad (MYX: 1023) is a Malaysian universal bank headquartered in Kuala Lumpur and operating in high growth economies in ASEAN (WIKIPEDIA) . It was founded in 1949 and is regulated by Bangko Sentral ng Pilipinas (BSP)
CIMB Bank Philippines is an all-digital mobile first bank and part of the CIMB Group — one of ASEAN’s largest banks, based in Malaysia. It is a member of BancNet, PDIC (Philippine Deposit Insurance Commission), and regulated by the Bangko Sentral ng Pilipinas(Wikipedia).
It offers two types of savings account namely: UpSave Account and Fast &Fast Plus Account. Such accounts offers 4% interest rates per annum with no minimum maintaining balance.
If you want to compute how much your savings will earn through compounded interest, you may use this equation:
Net Interest Earned = [Average Daily Balance x No. of days in a month / 360] x Interest Rate P.A. x [1 – Withholding tax (20%)]
CIMB Bank also offere free life insurance when you meet the minimum average balance in their savings accounts. Normally, CIMB bank notifies its depositors whenever they have insurance promos.
They also offers personal loans to qualified members.
2. ING Bank
ING (the trading name of ING Bank (Australia) Limited) is the world’s leading savings bank and is wholly owned by ING Group. When it comes to security, don’t worry as the ING app is fully regulated by the Bangko Sentral ng Pilipinas (BSP) and is a Philippine Deposit Insurance Corporation (PDIC) member. This means the deposits are insured by PDIC up to PHP 500,000 per depositor (Wikipedia)
ING offeres savings account, credit cards, insurance and loans. This bank offers 2.5% interest rates per annum for depositors with average amount of 20 Million pesos below and an additional 1% for above 20M. They are currently offering a 4% interest rates from September 1,2020 to March 31,2021.
GSave is a bank account built by CIMB Bank and GCash. It is the first-ever bank account you can open and maintain straight from your GCash app! No initial deposit, no maintaining balance, no lock-in period, and no hassle in moving funds to and from your GCash wallet.(Wikipedia)
Gsave si actually valid for 12 months and is offering a 4% interest rate per annum with no minimum average deposit. Gsave could be linked to CIMB Bank for more convenient banking.