In February 2021, the inflation rate in the Philippines spiked to 4.7%. The spike in inflation is the highest since January 2019, so it’s a good thing that it has slowly been easing since then.
But the higher the inflation rate, the worth of our money decreases. Since inflation erodes the purchasing power of cash, not only does it affect the things we can buy with our money, but keeping money stored away for the faraway future means that you’re slowly losing its value.
This is where high-interest bank accounts can reduce the effects of inflation on your savings. At least with the small addition to your funds thanks to the interest rate, you’ll get more than you store in your account every month.
Traditional banks are known to give less than 1%, so here are digital banks that’ll give you up to 4%!
CIMB is the easiest place to start because it’s connected to GCash! You can open a GSave account via GCash, and simply create a CIMB account later on – where you can also open an UpSave account. Right now, the CIMB GSave’s interest rate is 2.6% per annum, while CIMB UpSave has 2.5%. You can bump that up to 4% if your funds reach 100,000 PHP.Â
A digital banking service by EastWest, Komo offers a higher interest rate compared to its parent bank. Previously 3% but now 2.5%, the interest rate is still high compared to the usual rates in the Philippines. Even though this is a digital bank, they will send you a debit card so you can easily withdraw money!
ING is one of the digital banks that have been in the Philippines for years now. They currently have a 2.5% interest fee but like CIMB, they also have the occasional promo to bump that up to 4%.Â
Tonik is one of the more recent digital banks in the Philippines. They opened to the public just this year, so their interest rates are higher than ever! If you opt for Tonik’s Solo Stash, the interest rate is 4%. They also have a time deposit option, and the interest rate for that can go up to as high as 6%.Â
While these high-interest bank accounts will reduce the effects of inflation in your money, investing is the way to go if you plan to grow them further.
All of these banks are PDIC insured with a maximum coverage of 500,000 PHP per depositor. Also do take note that the interest rates of these banks change daily. So keep your eye out for changes and promos!