Bank Accounts

When we think of bank accounts, a savings account is the type the most often comes to mind. A savings account allows you to earn interest on deposits, which you can draw from at any time, subject to withdrawal limits as well as restrictions when using certain channels such as ATMs. Savings accounts at banks accredited by the Philippine Deposit Insurance Corporation (PDIC) are also insured up to P500,000.

As banking products, savings accounts are designed to preserve your money’s value while giving you easy access to it. Physical cash can easily get damaged, lost, or stolen. Cash also loses value over time due to inflation. By keeping cash in a savings account, you not only keep it safe from day-to-day risks such as misplacement and theft, but you also help preserve your buying power, thanks to the interest earned.

Robinsons Bank offers a number of savings account products, including RBank Savings, IPONsurance® Savings, Passbook Savings, Simplé Savings, RRewards, Tykecoon Savings, and US Dollar Savings. If you want to open an account, you may do so using the RBank Sign Up app. You may also get in touch with a Robinson Bank representative or visit the nearest Robinsons Bank branch to learn more.

Savings accounts offer a good mix of stability and access. By simply having your cash in a savings account, you can make it earn through interest. Savings accounts are also easily accessible for day-to-day expenses if needed. Having money in a savings account also keeps it protected, which isn’t the case when you keep loose cash.

A salary account is similar to savings account except that these typically do not have a minimum maintaining balance. These are usually opened by an employer on behalf of an employee to facilitate salary payments. Existing savings accounts can often be converted to a salary account. Salary accounts can also be converted to a savings account, should the employee leave their job.

Yes! In many cases, it can be useful for a business to have a savings account, much for the same reasons an individual might have one. Savings accounts can help a business keep its money safe and easily accessible. A well-managed savings account can also help a business get a better credit rating.

Please get in touch with a Robinsons Bank representative to learn more about which type of savings account is best for your business.

Absolutely! Helping your child open a savings account early on can be a great way for them to learn about managing their finances. Robinsons Bank offers Tykecoon, a savings account product with a low opening and maintaining balance specifically designed for children. Give your children an early start in their savings today.

A checking account, also known as a current account, is a type of bank account used for allowing easy access to money. As the name implies, a checking account usually gives the account holder access to a checkbook, which facilitates the quick and easy disbursement of cash. In contrast to savings accounts, funds in checking accounts do not typically earn interest or have a low interest compared to other types of bank account.

This is because, unlike a savings account, the goal of a checking account is quick and hassle-free access to funds rather than the preservation of its value. While a checking account does protect your cash from getting lost or stolen, inflation can affect the cash’s value more than if it were in a savings account, due to the lack of interest.

However, checking accounts give you very few restrictions when it comes to accessing funds. So long as you have cash in the account, you can access the funds, free from restrictions. Typically, the only restriction would be daily ATM withdrawal limits.

There is also a limited form of credit in checking accounts in the form of overdrafts, where the account holder can draw more cash than is available in their account, subject to the bank’s terms and conditions. This can be a form of protection for the account holder, as the overdraft helps them continue to pay bills in the event of an emergency.

Visit the nearest Robinsons Bank branch to open a checking account today!

Checking accounts aren’t for everyone. But there are several cases where having one makes sense. Here are some situations where a checking account may be the right bank account for you:

1.) If Savings Account Transaction Limits Are Too Low

Sometimes, the transaction limits for savings accounts may not be enough to cover a needed expense. For instance, if you only have a savings account and have a big-ticket item that you need to buy, you might have to withdraw your cash over the counter to get around the daily withdrawal limit. With a checking account, you can simply write a check or directly transfer the needed amount with no restrictions.

2.) If You Need a Convenient Paper Trail

Checks leave a paper trail, which makes them convenient for proving payments to individuals or organizations. For instance, if you need to make a tax-deductible donation to a charity, your checking account can provide proof at several different points. Your bank statement, the actual checkbook, as well as carbon copies of the check you made, can all be used as proof of payment, for whatever purpose you might need.

3.) If You Want the Convenience of Cash, without the Drawbacks

Checks are almost as good as money and are generally accepted instead of hard cash for larger purchases. Order checks are especially safe, as they can only be cashed in by a specific person or organization, where physical cash can be spent by anyone.

4.) If You Need to Make Regular Payments

Checking accounts make it simple to enroll in auto-payment arrangements. These can be handy for paying utilities, employee salaries, rent, and for other regular expenses. Because of the lack of limits and the existence of overdraft protection, handling regular payments through a checking account helps ensure that all necessary regular payments happen.

Checking accounts are intended for funds that are intended to be spent immediately. In contrast, savings accounts are meant for longer-term savings. Giving quick access to funds is the main service offered in a checking account. In a savings account, there is a balance struck between access and fund preservation.

Banks that cater to consumers encourage savings accounts as well, as they give them access to liquid cash that is not likely to be pulled out, which can be used for other income-generating projects. Because the funds in checking accounts are not as likely to be stable, the banks have to assume some level of risk, hence the lack of interest and the associated fees.

Time deposit accounts, also known as term deposits or simply as “time deposits”, are a type of interest-earning bank account with a preset maturity date. These tend to have interest rates higher than savings accounts, with the interest increasing with the length of the term and size of the amount deposited. When the deposit reaches maturity, the depositor typically has the option to withdraw the full amount or just the accumulated interest.

In a time deposit, depositors essentially promise the bank that they will not withdraw their funds from the account for a set amount of time. In return, the bank will pay a higher interest rate.

It should be noted that even if there’s a maturity date for time deposits, that doesn’t mean that the depositor cannot take money out of the account. However, to discourage this from happening, banks will typically institute a penalty for early withdrawals.

Robinsons Bank offers a number of high-yield time deposit products, including Peso Special Savings, Peso Time Deposit, and US Dollar Time Deposit. Visit the nearest Robinsons Bank branch to start investing!

It depends on what you need. If you have a lot of extra cash but are averse to spending it, a time deposit offers an excellent, low-risk means of investment. If you need your funds to be easily accessible, a savings or checking account would be more appropriate, as the early withdrawal penalties of a time deposit greatly reduce the value of your fund.

Nonetheless, time deposits can be a good way to preserve the value of cash, as the higher interest rates can be a decent way to offset the effects of inflation. While time deposits may not earn as much as other types of investments, they are extremely low-risk and earnings are virtually guaranteed. If you are undecided about what to do with the cash you have on hand, keeping it in a time deposit account can be a good way to keep it safe and productive in the meantime.

Time deposits give the bank a more stable source of cash to use, which is why banks tend to offer higher interest rates to encourage more depositors to open a time deposit account. Conversely, savings and checking accounts are less stable, so banks tend to offer lower or no interest rates for those kinds of accounts.

Get in touch with a Robinsons Bank representative to learn more about your investment options.