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Saturday, May 21, 2022
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Saving in Banks (Concluded from last week)

 National Banking Week is held on every first week of January, and enjoins all banks to promote and publicize their activities in the local communities.

            In an e-newsletter, the Financial Consumer Affairs Group (FCAG) of the Bangko Sentral ng Pilipinas discussed the need for continuing campaign efforts to highlight the importance of saving in banks.

            Citing financial websites www.topbusinessfinance.com and lawschool.unm.edu, the FCAG noted “safety” and “interest” as the top reasons why banks are essential to us.

            The bank, of course, remains the safest place to keep one’s money. High security facilities ensure that the money is protected from theft, damaging elements (e.g. rodents, insects), and disasters (e.g. fire, flood).

            Banks also allow one’s money to earn interest, as opposed to letting it lie “dormant” in one’s house, the FCAG said.

            Here are the other reasons why a financial consumer should seriously consider putting his or her money in the bank:

 

·      Convenience—There are several bank branches to serve you so you always have easy access to your money. Most banks likewise offer complementary online banking services such as bills payment, fund transfers and e-shopping.

·      Credit—Banks can help a financial consumer establish and build a credit history.  They are willing to loan money to people with good financial standing and who manage their finances responsibly.  If you start that relationship with the bank, they will be able to work with you when you need help (e.g. obtaining housing or car loans).

·      Economic growth—The FCAG said that through banks, an ordinary depositor can help “pump prime” the economy.  Banks can “assist” families in buying homes, help small businesses to grow and thrive, and ultimately promote the country as a favorable place for doing business. 

·      Protection—Banks are highly regulated institutions, according to FCAG. The biggest safety net that you have with your bank savings comes from the Philippine Deposit Insurance Corporation, which insures savings of up to P500,000.  “Further, be secure knowing that the BSP, as the supervisor of all banks, continues to formulate policies and institute controls that protect clients and their money from over-profiteering or erring bankers,” the FCAG emphasized.

 

We should also be aware that there is an existing Memorandum of Agreement between the Bangko Sentral and members of the Bank Marketing Association of the Philippines (BMAP) regarding a special kiddie account program.

The BMAP, comprised of the country’s leading banks, has developed the “Banking on Your Future (BOYF) Kiddie Account Program.” This new type of savings account encourages kids and schoolchildren to start the habit of saving regularly.

The program allows kids to avail of their kiddie savings accounts with P100 or less initial deposit and to build up the balance to the required minimum to earn interest.

Participating BMAP member banks include Allied Banking Corporation; Banco de Oro Unibank, Inc.; Bank of the Philippine Islands; China Bank Savings, Inc.; Development Bank of the Philippines; East West Banking Corporation; Maybank Philippines Inc.; Philippine National Bank; Philippines Savings Bank; Philippine Veterans Bank; RCBC Savings Bank; and Security Bank Corporation.

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