Freelancing is becoming an increasingly popular choice of career path for many Filipino workers nowadays, particularly young adults who are looking for more flexibility and independence in their work schedules. In fact, the Philippines Institute for Development Studies (PIDS) reported a 208% growth in freelance revenue in the country from 2019 to 2020 alone. This goes to show how more Filipinos are choosing to freelance, whether it be their main source of income or as a means to supplement their finances.
However, being a freelancer can also come with unique financial challenges such as having irregular income and difficulties in growing their savings. If you’re an aspiring freelancer, opening a bank account can help you navigate those challenges. However, not just any bank account will do. Here are several key factors you should consider when opening a bank account as a freelancer.
1. Ease of Account Opening
Freelancers are expected to juggle multiple tasks, often for multiple clients. They need to do their own marketing, attend meetings, manage invoices, and follow up on payments, all on top of their main job responsibilities. Opening a bank account should not be an additional burden. So, make sure to look for a bank that can make the application a hassle-free experience.
The easiest to open bank account is one that allows account opening online or through a mobile app. Digital banks in particular offer a straightforward and efficient application process, with some like Maya requiring only one valid ID. This ease of application means you can focus more on your freelancing work and worry less about paperwork.
2. Low or No Maintaining Balance Requirement
A freelancer’s income can vary from month to month. Thus, it’s best to opt for a bank with low or no maintaining balance. This allows you to maintain your bank account even during months when income is low without having to stress over penalties. Moreover, this flexibility can be particularly helpful for new freelancers who may not have consistent earnings yet.
3. High Interests for Savings
Growing your savings is essential as a freelancer to better prepare for your future plans, unexpected expenses, or retirement. To help with this goal, look for a bank account that can offer high interest rates to give your savings a boost. Note that digital banks are more likely to offer better rates compared to traditional banks, thus helping you grow your savings faster.
Maya Savings, for instance, offers a base rate of 3.5% interest p.a. that you can boost up to 15% interest p.a. by buying prepaid load, paying bills, and generally just using your Maya account for various transactions. If you’re saving for a particular goal, something like Maya’s Personal Goals can make the task easier as it allows you to set up to five goals that you can deposit money to over time. Your goals are guaranteed a 4% interest p.a., enabling you to reach those goals faster. Meanwhile, for freelancers planning for the long-term, Maya’s Time Deposit Plus can be a good fit. Your Time Deposit Plus account can be set for a 3-, 6-, or 12-month term and starts with a guaranteed 3.5% p.a. that can increase up to 5.75% p.a. if you reach your target amount.
By taking advantage of your bank account’s interest rates, you can steadily grow your money as a freelancer and have funds ready for any future needs.
4. Access to Digital Banking Tools
Freelancers often work remotely, which makes access to digital banking tools a must. Make sure the bank you choose has a user-friendly mobile app where you can perform tasks such as transferring funds, paying bills, and monitoring your account balance. This helps you save time and effort from having to visit a physical branch and waiting in line just to complete a simple transaction. By having your bank account easily accessible via an app, you can manage your freelance income and budget at a time that works best for you.
5. Affordable Fees and Charges
Hidden fees and high service charges can take a huge chunk out of your hard-earned income. So, when choosing a bank account, be sure to review the fee structure to ensure it aligns with your financial means. Opt for accounts that have low or no charges for essential banking services such as withdrawals, fund transfers, or account maintenance. By doing so, you’re able to keep more of your freelance income while still effectively managing your finances.
6. Robust Security Features
Security should always be a top concern for any bank account, especially in this day and age when cybersecurity threats are becoming more prevalent. Look for banks that make use of multiple security features such as two-factor authentication (2FA) and one-time password (OTP) generation to deter unauthorized transactions.
It’s also a wise idea to open an account with a bank that’s insured by the Philippine Deposit Insurance Corporation (PDIC) for your added peace of mind. Maya Savings, for one, is regulated by the Bangko Sentral ng Pilipinas and insured by PDIC of up to PHP 500,000. As freelancers often handle their banking independently, it’s essential to have a bank you can rely on to keep your funds and sensitive information safe.
Choosing the right bank is a crucial step for any aspiring freelancer. With the right account, you can manage your earnings and grow your savings with less stress, thus allowing you to focus on building your freelance career. Make sure you take the time to compare your options and consider the points discussed above to find the bank that best suits your financial needs and goals.
