How to Open a Bank Account in the Philippines

If you’re planning to move to the Philippines or stay long-term, you’ll likely want to open a local bank account. Doing so makes it easier to access your money, pay local bills, and send money to other locals.

The hurdle is that Filipino bank accounts aren’t available to all foreigners, particularly those on shorter-term stays. It can take some time to get established and become eligible. Here’s a closer look at the ins and outs of how to open a bank account in the Philippines — including who can open one and how the process works.

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Key takeaways

• Filipino bank accounts are available to Filipino citizens, foreign residents, and foreigners with an ACR I-Card.
• Many Filipino banks allow Filipino citizens to open bank accounts online.
• Foreigners often have to open bank accounts in person at a branch in the Philippines, but there are a few exceptions.
• Many Filipino banks offer checking, savings, and time deposit accounts.
• The application process involves submitting a valid ID accepted by the bank, completing paperwork, and making an initial required deposit.

Can you open a bank account in the Philippines?

The banking system in the Philippines is designed primarily to serve the people who live in the country permanently, including Filipino citizens and resident foreigners. Tourists generally aren’t allowed to open Filipino bank accounts unless they stay for more than 59 days and receive an Alien Certificate of Registration Identity Card (ACR I-Card). The ACR I-Card serves as proof that a foreigner has a longer-term visa, such as a Temporary Visitor’s Visa 9(a), a Special Study Permit (SSP), or a Special Work Permit (SWP).

However, the rules and eligibility requirements can vary by bank, and even by branch manager.

Can you open a Filipino bank account from the US?

Whether you can open a Filipino bank account from the US or not depends on the bank’s policies and your legal status in the Philippines. Many Filipino banks allow Filipino citizens to open accounts fully online, but don’t allow foreigners to do so. As a foreigner, you often must visit a physical bank branch in the Philippines and apply in person.

However, there are exceptions. Banco de Oro (BDO), for example, allows foreigners with valid resident visas and addresses in the Philippines to open accounts online. Additionally, UnionDigital Bank is a fully digital bank that approves foreigners with Philippine phone numbers, proof of residency, and supporting documents (such as an ACR I-Card).

An alternative short-term option available to US citizens is a GTourist account with GCash, a popular mobile wallet in the Philippines. The GTourist account allows Americans to use GCash for 30 days and spend up to PHP 100,000 (around USD 1,600). You can create an account from the US using a non-Philippine phone number and your US passport, and it will activate once you arrive in the Philippines.

How to open a bank account in the Philippines

Not sure how to open a bank account in the Philippines? While the process can vary from one bank to the next, here are the typical steps you can expect.

1. Choose the type of account you need

The first step is to shop around and decide which type of account, or accounts, you want to open. The most common types you’ll find in the Filipino market include:

• Checking accounts: These are designed for everyday transactions and typically earn little to no interest. They often come with checkbooks and debit cards. Some banks offer a range of accounts, from no-interest checking accounts with lower deposit and balance requirements to interest-earning accounts with higher deposit and balance requirements.
• Savings accounts: These are designed to store money and pay small amounts of interest. They often come with debit cards or passbooks. Banks also offer various tiers, similar to checking accounts, with varying interest yields and deposit requirements.
• Time deposit accounts: Time deposit accounts are like certificates of deposit (CDs) in the US. You deposit a set amount of money, agree to leave it for a certain period, and earn a guaranteed return. They often offer higher interest yields than savings accounts.

Checking accounts are often best for everyday transactions like paying rent and utilities, buying groceries, and withdrawing funds to cover transportation fees. They are the core account type most people will need.

Savings accounts are a good supplemental account if you have more money than you’ll spend each month. Moving funds to savings can help you earn more interest and allocate them for other purposes, like an emergency fund. Time deposit accounts can help you earn even more interest when you won’t need some of your money for a set amount of time.

2. Collect what you’ll need to open your account

Once you decide on the account type you want to open, you can start the application process. You’ll often have to submit various items, including:

• Proof of identity: One to two valid forms of ID, such as a passport, driver’s license, or ACR I-Card.
• Proof of address: A document confirming your current address in the Philippines, such as a utility bill, recent bank statement, or lease agreement.
• PH phone number: An active phone number in the Philippines.
• Photos: A selfie of you holding a valid ID, or printed pictures that meet certain size and quality specifications.
• Tax Identification Number (TIN): A Philippine TIN or foreign tax number, such as a Social Security Number (SSN) for US citizens.
• Global tax reporting (FACTA/CRS): The paperwork required to report account information to foreign tax authorities (when applicable).
• Application form: A completed customer information sheet.
• Additional documents: Banks may request additional documents, depending on your situation.

While these are some of the common items needed for the best banks in the Philippines, requirements can vary by bank. You’ll always want to check the requirements of the banks you’re considering.

3. Fund your initial deposit

Most Filipino bank accounts require you to make a minimum initial deposit within a set period, such as seven days. If you miss the deadline, your account can be closed. Funding options may include a deposit at one of the bank’s branches, sending money online, or a cardless deposit at a designated machine in the Phillipines.

Many accounts also require maintaining a minimum balance, meaning you’ll need to keep the account adequately funded over time to avoid monthly service fees or penalties.

Pros and cons of opening an account in the Philippines

Opening a bank account in the Philippines can be beneficial for a variety of reasons, but it also comes with a few drawbacks. Here are the main pros and cons to consider.

Pros

• Convenience: Pay bills, rent, utilities, people, and everyday expenses with ease.
• Lower costs: Reduce foreign transaction fees, conversion costs, and funds transfer fees.
• Local financial services: Some banks offer savings accounts with decent interest rates, credit cards, loans, insurance, and more.
• Easier currency management: You can hold Philippine pesos directly instead of constantly converting between USD or another currency.

Cons

• Difficulty for foreigners: Opening an account can be frustrating and time-consuming if you’re not a Filipino citizen. Rules and requirements can also vary by bank branch.
• Minimum balance requirements and fees: Many accounts require a minimum initial deposit and a minimum average monthly balance to avoid monthly penalties.
• Currency risk: If your income is in another currency, such as US dollars, USD to PHP rate fluctuations can affect your bottom line.
• Tax reporting obligations: Depending on your home country, you may need to report foreign bank accounts or comply with additional tax regulations.

Common fees and other considerations

As you’re shopping around for a bank in the Philippines, here are some of the key features to compare:

• Minimum initial deposit: The minimum amount you must deposit to open the account. It often ranges from PHP 5,000 to PHP 10,000 for regular checking accounts, and increases for accounts that offer an interest yield.
• Minimum Average Daily Balance (MADB): The MADB is the minimum average daily balance you must keep in the account to avoid a fee. It’s often equal to the minimum initial deposit.
• Minimum balance to earn interest: The minimum balance you have to keep in your account to earn interest.
• Interest yield: The amount of interest you can earn on your balance per year.
• Account closure fee: A fee (often PHP 100 to PHP 500) for closing an account within 30 days of opening.
• Account dormancy fee: A fee if you don’t use the account for a certain period, often a year.
• Missing the MADB fee: A fee charged if your account balance drops below the MADB, often PHP 300 to PHP 500.
• ATM and debit card transactions: Fees for ATM withdrawals and balance inquiries, declined transactions, foreign currency transactions, and Interbank funds transfers.
• InstaPay and PESONet: Fees for electronic fund transfers to participating banks and e-wallets in the Philippines.

The fees and requirements can vary widely between banks, and will ultimately impact your bottom line, so it’s worthwhile to shop around and look for the best value.

Transfer money between accounts with Western Union

If you’re planning to travel to the Philippines soon, Western Union can help you in a few ways.

First, if you open a bank account in the Philippines, you can use Western Union to transfer funds from your home-country account to your new Filipino account. Simply open our international money transfer app, complete the request, and receive the funds within one to two business days.

On the other hand, if you can’t open a bank account in the Philippines immediately or at all, you can use Western Union to send cash from your home bank account or credit card to thousands of agent locations in the Philippines. Once you place the order, the money will usually be available for pickup within minutes.