Overseas Filipino Worker (OFW) Savings Accounts Options

Money Transfer to the Philippines - Various OFW Account Options

In this article, we will discuss various investment options available to Overseas Filipino Workers (OFW) to park their savings back home in the Philippines. Before we get going, lets first define a couple of terms we will regularly use throughout this post.

OFW

An Overseas Filipino Worker (OFW) is a person of Filipino origin who lives outside of the Philippines either indefinitely as citizen or as permanent resident of a different country, or who resides abroad for a limited, definite period, such as on a work contract or as a student.

Overseas Filipinos are known by a variety of terms with slightly different and sometimes overlapping meanings. Some of these terms include the following.

OCW

An Overseas Contract Workers (OCW) is a Filipinos working abroad and expected to return permanently either upon the expiration of a work contract or upon retirement.

OFI

Overseas Filipino Investor (OFI) is a Filipino expatriate who contributes to the economy through remittances, buying properties and creating businesses.

Balikbayans

Balikbayans are Filipino citizens who have been continuously out of the Philippines for a period of at least one year, Filipino overseas workers, and former Filipino citizens and family who have been naturalized in a foreign country and comes or returns to the Philippines.

OF

Overseas Filipino (OF) includes all the above definitions and categories.

Global Filipino

Global Filipino is recent term that is less widely used, and includes all the above definitions and categories.

Next, lets talk about the BSP, which stands for Bangko Sentral ng Pilipinas (BSP), which is the central bank of the Republic of the Philippines. The BSP took over from the Central Bank of Philippines, which was established on 3 January 1949, as the country’s central monetary authority. The BSP enjoys fiscal and administrative autonomy from the National Government in the pursuit of its mandated responsibilities.

Given the important contributions that OFWs make to the economy of the Philippines, the BSP strives to improve the financial ecosystem to ease remittance and provide useful investment options to overseas Filipinos. Below are some examples of critical initiatives and regulations undertaken by the BSP to ensure OFWs see an encouraging, welcoming and hassle free banking system back home in the Philippines.

1. Enhancing transparency and promoting competition in the remittance market.
2. Improving access to financial services by issuing bank advisories and creating regulations.
3. Granting foreign currency deposit unit (FCDU) license to rural banks/cooperative banks to encourage the flow of foreign exchange into the banking system and provide OFs with an option to maintain foreign currency deposits (FCD) instead of immediately exchanging their remittance proceeds into Philippine Pesos (PHP).
4. Facilitating interconnection of major ATM networks to provide safer and convenient banking and to reduce transaction cost or service fees for all ATM-related transactions of over 10 million ATM cardholders, including OFs and their beneficiaries.
5. Approving alternative modes of remittances, e.g., Smart Padala, G-Cash and stored value cards to achieve lower transaction cost and faster delivery time for the remitters and the beneficiaries.
6. Standardizing identification requirements of banks to customers while ensuring compliance with the Anti-Money Laundering Act.
7. Encouraging OFs and their families to increase savings and investment.

In sight of BSP's effort and guidelines to provide OFWs with safe, fast and affordable ways to remit and save their earnings in the Philippines, the following commercial banks in the Philippines have extended their operations overseas to offer remittance services:-

1. Philippine National Bank
2. Banco De Oro
3. Bank of Philippine Islands
4. Land Bank of the Philippines
5. Development Bank of the Philippines
6. Rizal Commercial Banking Corporation
7. China Banking Corporation
8. Metropolitan Bank and Trust Company

These commercial banks further organized themselves into a formal association known as the Association of Bank Remittance Officers, Inc. (ABROI), in order to set-up standards to improve the operations on remittance services and agreed to accept remittances for credit to their own bank and remittances for deposit to other banks, where the OF beneficiary account is maintained.

In subsequent sections, we deep dive into the offerings that these banks have for OFWs to help overseas Filipinos deposit and save their money in the Philippines.

1) Philippine National Bank (PNB) OFW Savings Account

The Philippine National Bank (PNB) is a leading, dynamic Filipino financial services group and offers various products and services for Global Filipinos. Specifically, we will discuss the OFW Savings Account in further detail.

The OFW Savings Account is an attractive options to OFWs since they can directly transfer their remittances to this account. There are also no opening and maintaining balances required for this account. Additionally, this is an interest earing account which means that your hard earned money grows over time. There is an added convenience of online banking and withdrawl and balance inquiry cross a wide network of branches and ATMs.

Below we summarize the main points about this PNB OFW Savings Account.

1. Send remittance straight to your PNB ATM account and have it credited in seconds.
2. Pay your SSS contribution/loan amortization and other utilities by enrolling your account in Auto Debit Arrangement (ADA)
3. View your account balance, pay your bills or transfer funds online via Internet Banking even if you are abroad!
4. Withdraw and do balance inquiry in any PNB, Bancnet, Megalink and Expressnet ATM in the Philippines.
5. Transfer funds, inquire on your account balances and request for statement of account to be sent to your email address through Phone and Mobile Banking.
6. Zero opening and maintaining balance
7. Earn interest for balances of Philippine Pesos (PHP) 10,000 or US Dollars (USD) 500 and up
8. Save while abroad
9. 24/7 ATM access thru PNB, MegaLink, BancNet and ExpressNet ATMs nationwide
10. Minimum ADB to Earn Interest - Philippine Pesos (PHP) 10,000.00 / US Dollars (USD) 1,000.00
11. Interest Rate - 0.100% p.a.

2) Banco De Oro (BDO) Kabayan Savings Account

The Banco De Oro (BDO) is a full-service universal bank in the Philippines and has a BDO Kabayan Savings Program which is targeted to improving the remittance and saving process for OFWs. Pertinent to our discussion is the BDO Kabayan Savings Account whose salient points we summarize below.

Below we summarize the main points about an NRO account.

1. Opening balance of Philippine Pesos (PHP) 100 for peso account or US Dollars (USD) 100 for dollar account.
2. Simple account opening requirements - one (1) valid ID with picture and one (1) 1x1 ID picture.
3. Convenience of ATM debit card and passbook.
4. Zero maintaining balance with at least one remittance transaction in a year.

BDO Kabayan Shipping Dollar Account

Seafarers employed by POEA-accredited shipping companies may also open a BDO Kabayan Shipping Dollar Account where they can directly credit their allotment. Its hassle free to open the Kabayan Shipping Dollar Account - only one (1) valid ID with picture, one (1) 1x1 ID picture and a valid seaman’s book are needed. Additionally, only US Dollars (USD) 10 initial deposit is need to open this account.

3) Bank of Philippine Islands (BPI) BPInoy Savings Account

The Bank of Philippine Islands Direct Savings Bank is a wholly-owned subsidiary of Bank of the Philippine Islands (BPI) and offers the BPInoy Savings Account as a really good option for OFWs to send money back home to the Philippines.

Below we summarize the main points about a BPInoy Savings Account.

1. No initial deposit required.
2. No maintaining balance required as long as there is a remittance transaction at least once every 3 months.
3. Earn higher interest, better than any other regular savings account.
4. Access your account through over 14,000 Expressnet, Bancnet, and Megalink ATMs nationwide.
5. Withdraw cash from over 1 million Cirrus-affiliated ATMs in over 210 countries worldwide in the currency of the country you are in.
6. Enjoy cashless shopping via the Express Payment System (EPS) at accredited establishments nationwide. No enrollment required.
7. Monitor your account balance, transfer funds, pay bills or reload cellphones through BPI ATMs, BPI Express Phone, BPI Express Online or even via your cellphone with BPI Express Mobile.
8. Open an account from anywhere in the world -- online.

4) Land Bank of the Philippines - Various OFW Account Options

The Land Bank of the Philippines is a government financial institution that strikes a balance in fulfilling its social mandate of promoting countryside development while remaining financially viable. It offers various account options for OFWs to save monies sent back home after money transfers.

Below we summarize various OFW Accounts that the Land Bank offers.

Bagong Bayani ATM Account

1. Card-based type of Savings Account intended primarily for Overseas Filipinos.
2. Opening amount is only Philippine Pesos (PHP) 100.00.
3. Zero maintaining balance.
4. Issued in two forms: generic and personal. The generic card is issued by LBP Overseas Officers and other ORG designated personnel upon application while the personal cards are issued by LANDBANK branches with the account holder’s name embossed in the card.

OFW Passbook Account

1. Passbook-based Savings Account available at LBP Branches.
2. It can be opened by the Overseas Filipino or his/her designated beneficiary.
3. Opening amount is Philippine Pesos (PHP) 100.00.
4. Average Daily Balance (ADB) required is Philippine Pesos (PHP) 5,000.00.

US Dollar Passbook Account

1. Passbook-based USD Savings Account available at LBP Branches.
2. It can be opened by the Overseas Filipino or his/her designated beneficiary.
3. Opening amount is US Dollars (USD) 10.00.
4. Average Daily Balance (ADB) required is US Dollars (USD) 500.00.
5. Deposit to this account is represented in US Dollars (USD) but Philippine Pesos (PHP) or other Foreign Currencies may still be deposited to this account, as they are automatically converted to the US Dollars (USD) equivalent based on the prevailing foreign exchange rate on transaction date.

5) Development Bank of the Philippines (DBP) Electronic Cash (EC) Savings Account

The Development Bank of the Philippines plays a pivotal role in the quest for sustainable growth and development in the Philippines, and provides a convenient and hassle free Electronic Cash (EC) Savings Account for OFWs to seamlessly send and withdraw money within the country.

We present the salient points of the DBP Electronic Cash (EC) Savings Account below.

1. Most convenient ATM Savings Account for OFWs and OFW Beneficiaries.
2. Send money from any DBP office or Remittance partner abroad and withdraw from any DBP, Megalink, Bancnet and Expressnet ATMs nationwide.
3. No maintaining balance.
4. No minimum balance.
5. Access to account 24/7, wherever you may be!
6. Earn the best savings rate with DBP.
7. Insurance with PDIC up to a maximum of Philippine Pesos (PHP) 500,000 per account holder.

6) Rizal Commercial Banking Corporation (RCBC) Foreign Currency Deposit Unit (FCDU) Savings Account

The Rizal Commercial Banking Corporation (RCBC) is the financial flagship company of the Yuchengco Group of Companies (YGC), one of the oldest and largest conglomerates in the Philippines and South East Asia covering 60 businesses which include banking, insurance, construction, and education. Compliant with the guidelines of the BSP, RCBC offers a Foreign Currency Deposit Unit (FCDU) Savings Account that can be held in various foreign currencies. This account is interest earning so your savings grow over time.

Below we summarize details about the Foreign Currency Deposit Unit (FCDU) Savings Account that RCBC offers.

1. Supports a diverse array of foreign currencies such as: US Dollar (USD), Japanese Yen (JPY), Euro (EUR), Australian Dollar (AUD), British Pound (GBP), Canadian Dollar (CAD), Swiss Franc (CHF) and Chinese Yuan (CNY).
2. Fund Access with RCBC Business Center, RCBC AccessOne Personal banking products.
3. Transaction Record - Passbook.

Below we enumerate the interest rates, minimum balance and minimum balance to earn interest for various currencies supported by RCBC's Foreign Currency Deposit Unit (FCDU) Savings Account.

7) China Banking Corporation Overseas Kababayan Savings (OKS) Account

The China Banking Corporation, stock symbol CHIB, is the first privately-owned commercial bank in the Philippines, which catered initially to the needs of Chinese-Filipino businessmen. For OFWs, China Bank offers a good option in the form of the Overseas Kababayan Savings (OKS) Account that has various strong areas including a better interest rates compared to some other options available to overseas Filipinos.

Below we summarize details about the Overseas Kababayan Savings (OKS) Account that China Bank offers.

1. Initial Deposit Requirement - Waived
2. Minimum Monthly Average Daily Balance (ADB) Requirement - Waived
3. Minimum Balance to Earn Interest - Philippine Pesos (PHP) 1,000
4. Interest Rate - 0.25% per annum, subject to 20% withholding tax
5. Documentation - OKS Account ATM Card, Monthly Statement of Account (Optional)
6. Access Points - Branch, ATM, TellerPhone, China Bank Online, BancNet POS
7. Insurance - PDIC Coverage: Maximum deposit insurance for each depositor Philippine Pesos (PHP) 500,000

8) Metropolitan Bank and Trust Company (Metrobank) OFW Peso/Dollar Savings Accounts

Founded in September 5, 1962, the Metropolitan Bank and Trust Company (Metrobank) has since become the premier universal bank and among the foremost financial institutions in the Philippines. Metrobank offers 2 convenient OFW Savings Accounts with options to keep funds in either Philippine Pesos (PHP) or US Dollar (USD).

Below we summarize details about these 2 types of OFW Savings Accounts that Metrobank offers.

OFW Peso Savings Account

1. Currency - Philippine Pesos (PHP)
2. Kinds - Passbook or ATM
3. Initial Deposit - Zero
4. Maintaining Balance - Zero (at least 1 remittance transaction in 1 year)
5. Interest Rate - Interest earning of 0.25% per annum
6. Balance to Earn Interest - Philippine Pesos (PHP) 10,000.00
7. Conversion to Regular Account - No foreign inward remittance for 1 year from last remittance or date of account opening
8. Account Opening Requirements - 1 Valid government issued ID
9. ATM Features - can be accessed anytime, anywhere in the Philippines or through on-line banking (MetrobankDirect) for balance inquiry and bills payment
10. Insurance - Maximum Deposit Insurance for Each Depositor Philippine Pesos (PHP) 500,000.

OFW Dollar Savings Account

1. Currency - US Dollar (USD)
2. Kinds - Passbook
3. Initial Deposit - Zero
4. Maintaining Balance - Zero (at least 1 valid remittance transaction in 1 year)
5. Interest Rate - interest earning of 0.125% per annum
6. Balance to Earn Interest - US Dollar (USD) 500.00
7. Conversion to Regular Account - No foreign inward remittance for 1 year from last remittance or date of account opening
8. Account Opening Requirements - 1 Valid government issued ID
9. Insurance - Maximum Deposit Insurance for Each Depositor Philippine Pesos (PHP) 500,000.

That is a lot of information! To make this bit more easier to digest, we have created a convenient comparison table to help you glance at the various differentiating features of the aforementioned OFW Savings Accounts.

Overseas Filipino Worker (OFW) Savings Accounts - Easy Comparison Reference

Please note that some of the above numbers may change frequently. If you notice any discrepancy in the above information, please write to us at info@remitfinder.com and we will be happy to update the table above.

So, which account is best for you?

The answer is, it depends on your situation and need. Use the above comparison table as a handy reference to help you decide.

Thanks to the encouragement and guidelines from the BSP, there are now multiple good options for OFWs to park their savings in the Philippines. We trust the above info will prove useful to you as part of your decision to send money back home to the Philippines. This concludes our analysis and discussion - happy remitting!