Array
Shopping & Services

You Can Now Open A Bank Account with P100 Initial Deposit

The so-called basic deposit account will also entail a zero maintaining balance and less stringent identification requirements

Shares
Photography: GOBankingRates.com (Main Photo)

The Bangko Sentral ng Pilipinas (BSP) has released a new circular outlining its rules and regulations on basic deposit accounts, a type of savings account with less stringent requirements with the aim of making it more accessible to the 86 percent of Filipino households that are unbanked.

“A basic deposit account refers to [an] interest- or non-interest-bearing account designed to promote financial inclusion,” wrote the BSP in Circular 992, titled Framework for Basic Deposit Accounts. “This account will enable Filipinos, especially the unserved and underserved, to receive and make payments, as well as have a facility for store of value.”

In the circular, the BSP outlined the features that make basic deposit accounts different from regular bank accounts. Its biggest difference is its opening amount of at most P100, far less than the usual requirement of P1,000 or more. These accounts also do not have any minimum maintaining balances and dormancy charges, which will allow users to keep small amounts in their accounts if they please.

However, another key difference is that basic deposit accounts have a maximum balance of P50,000, which if exceeded by the depositor would convert their account to a regular deposit account. In a media release dated January 30, the BSP said that this P50,000 limit was “to prevent misuse of the basic deposit account.”

As well, the BSP highlighted that opening these accounts will follow “simplified Know-Your-Customer (KYC) requirements,” which will allow applicants to verify their identities without the multitude of documents or identification required by regular deposit accounts.

On the banks’ side, the BSP said that their basic deposit account products will have a zero-percent reserve requirement, which enables them to maintain these accounts at lower costs than their regular accounts. The circular also noted that banks are free to customize their products so long as they follow the minimum requirements of a basic deposit account.

ADVERTISEMENT - CONTINUE READING BELOW

“These features meet the need of the unbanked for a low-cost, no-frills deposit account which they can open even if they do not have the standard identification documents,” wrote the BSP in the media release.

Main Photo: GoBankingRates.com

*****

Lorenzo Kyle Subido is a staff writer of Entrepreneur PH

 

This story originally appeared on Entrepreneur.com.ph.

* Minor edits have been made by the Realliving.com.ph editors.

More on Realliving.com.ph

Shares

Latest Stories

What Is A Sunroom And How Do You Make One At Home?

Build a special, relaxing little sunroom for your home with the help of these five pieces

Cainta Is Opening A Skate Park Soon

It will definitely add a new facet to the municipality

South Folks, Expect Heavier Traffic Along SLEX in the Coming Months

It's part of another #BuildBuildBuild project.

How To Choose The Right Pieces For Your Living Room

Whether you're looking for a sofa, an armchair, or much more, get ideas from this newly launched BGC store

6 Common Kitchen Organizing Mistakes and How to Solve Them

Stop hoarding pretty dinnerware!

How Much Do Filipinos Plan to Spend this Holiday Season?

Mobile shoppers are likely to splurge more, according to a survey conducted by Facebook Philippines

Check Out This Colorful Beach Resort in Baler

Presenting the location of your next fun weekend escape with the gang

4 Simple Things You Can Do To Lessen Your Aircon Usage

You don't always have to turn on your AC to bring the heat down in your home

6 Wonderful, Under the Radar Things to Do in Bohol

Whether you're a single traveler, on vacation with a partner or with your family, try these underrated experiences in Bohol.

Ask Yourself These 3 Important Questions Before Starting A Home Garden

Building your own indoor garden is about more than just aesthetics; it requires a lot of responsibility

Kitchen Specialty Stores, Ranked From Budget To Luxe

Here are one-stop-shops around the metro, from budget to break-the-bank, to help you create your dream kitchen

5 Places Where You Can Buy Beautiful Baskets

More than just a part of our décor, these must-haves can be used as storage, too
Load More Stories

Get inspiring design ideas and handy hints.
Subscribe to our newsletter now!