Jump to content
roderick

Retirement Visa - Setting- Up Bank Account

Recommended Posts

roderick

Greetings

 

 I am thinking about obtaining a retirement visa, and spending the next few years in the Philippines. One thing I need to sort  out for my retirement  plan is what banking arrangements will I need to put in place ?. The most pressing question that I am now grappling with is how to select a reputable bank, how do I set up a bank account and how safe will my money  be once I entrust  it to the selected banker?.  With these questions in mind, does the Philippine government provide a deposit guarantee scheme and if so how does that scheme work?

Thanks in Advance 

 

James 

Edited by roderick
  • Like 1

Share this post


Link to post
Share on other sites
MickyG

Deposit guarantee scheme is for max of 500,000 pesos

 

Who do you bank with now?

Share this post


Link to post
Share on other sites
RogerDuMond
21 minutes ago, roderick said:

The most pressing question that I am now grappling with is how to select a reputable bank, how do I set up a bank account and how safe will my money  be once I entrust  it to the selected banker?.  

You have to use a bank that is approved by the PRA.

2. Remittance of Required Dollar for Time Deposit

Remittance shall be made to your own Dollar Account in the PRA accredited banks in the Philippines such as Bank of Commerce, Banco De Oro (BDO),  Philippine National Bank (PNB) & Union Bank, or PRA account in the Development Bank of the Philippines. Use of money obtained in the Philippines is not allowed.

http://www.maryjanegomezvisaconsultancy.com/services/srrv

Share this post


Link to post
Share on other sites
Davaoeno
1 minute ago, RogerDuMond said:

You have to use a bank that is approved by the PRA.

But only for the amount that is required for the Visa.  The rest of your money you can put in any bank that you want

  • Like 1

Share this post


Link to post
Share on other sites
roderick
2 minutes ago, Davaoeno said:

But only for the amount that is required for the Visa.  The rest of your money you can put in any bank that you want

Thanks Davaoeno

I know that I must place my retirement surety with a bank nominated by the PRA.  But how do I select  any other might bank for holding money that I bring  into the Philippines that I will use to live on and possibly invest. How do I go about assessing the stability and creditworthiness of a bank I may use, and to decide how safe my money is  with that bank??? Also, is there some sort of government guarantee over deposits held with banks herein the Philippines??

Share this post


Link to post
Share on other sites
MickyG

do you want to bank with a US bank or a European bank or a local bank outside of the PRA deposit

Share this post


Link to post
Share on other sites
Jawny
1 hour ago, roderick said:

Greetings

 

 I am thinking about obtaining a retirement visa, and spending the next few years in the Philippines. One thing I need to sort  out for my retirement  plan is what banking arrangements will I need to put in place ?. The most pressing question that I am now grappling with is how to select a reputable bank, how do I set up a bank account and how safe will my money  be once I entrust  it to the selected banker?.  With these questions in mind, does the Philippine government provide a deposit guarantee scheme and if so how does that scheme work?

Thanks in Advance 

 

James 

Banking in the Philippines is probably similar to what you’ve already experienced......though I don’t know whether you are accustomed to European or USA banks for example.

The philippines has a central banking oversight agency which sets guidelines and rules (Bangko Sentral ng Pilipinas) BSP.  From my experience, their rules are similar to what I’ve experienced in the past.  Not especially restrictive, but they do exercise control.

Many, if not most banks are covered by an insurance system where the client is protected up to a maximum amount. PDIC, Philippine Deposit Insurance Corporation.  If you have an account, it will be insured if the bank should close or fail.  There may be a delay while the PDIC goes about the recovery and payment, but your monies will be recovered.

That said, there are many banks that have been in business here for a long time and not likely to fail.  Your difficulty will be choosing the one that best meets your needs.  

There are many threads on the forum on the topic of banking and worth a read.  Linc members are quick to voice their approval of which is the best bank.

I have used Metrobank for decades and have few bade experiences with them.  However, my banking needs are simple.

One topic that comes up a lot in LinC is how to open the account.  Again, the archives have some excellent examples of opening an account.  The most common irritation is having to prove who you are by use of an ACR card.  If you don’t have one, consider getting one as part of your plan.  

  • Thanks 1

Share this post


Link to post
Share on other sites
Davaoeno
1 hour ago, roderick said:

How do I go about assessing the stability and creditworthiness of a bank I may use, and to decide how safe my money is  with that bank???

I have several accounts with different banks here. Most of them have more money than the insurance covers . However I am not worried using   the banks that I use - which are BDO  BPI and MBT . 

Share this post


Link to post
Share on other sites
Bama

Metro Bank has also worked fine for us over the years.

If you have to pay for services provided by any of the  PI Embassys in the US a cashier check drawn on a bank with affiliates in the US is required. MB satisfies this requirement as they have a branch in LA and NYC.

Share this post


Link to post
Share on other sites
roderick

Thank you for all these replies , they are very helpful.

 I have another question, I know that I will be able to set up a bank account holding Philippine  Pesos. Is it also possible to set-up a bank account with a PI bank to  hold amounts in  a foreign currency - such as US dollars ??

Share this post


Link to post
Share on other sites
RogerDuMond
19 minutes ago, roderick said:

Thank you for all these replies , they are very helpful.

 I have another question, I know that I will be able to set up a bank account holding Philippine  Pesos. Is it also possible to set-up a bank account with a PI bank to  hold amounts in  a foreign currency - such as US dollars ??

yes for US dollars

Share this post


Link to post
Share on other sites
Cgu
16 minutes ago, roderick said:

Thank you for all these replies , they are very helpful.

 I have another question, I know that I will be able to set up a bank account holding Philippine  Pesos. Is it also possible to set-up a bank account with a PI bank to  hold amounts in  a foreign currency - such as US dollars ??

Should be no problem. I recommend a foreign bank (there are no European retail banks in the Philippines), either Citi or HSBC.

Of course you can open a US dollar account in a local bank such as Metro Bank or BDO. I recommend not to put all eggs in one basket.

For transactions to/from Philippines I also can recommend either HSBC or Citi, as most of them have branches in your home country (I suppose US, but they have also in Europe)

Share this post


Link to post
Share on other sites
Jawny
35 minutes ago, roderick said:

Thank you for all these replies , they are very helpful.

 I have another question, I know that I will be able to set up a bank account holding Philippine  Pesos. Is it also possible to set-up a bank account with a PI bank to  hold amounts in  a foreign currency - such as US dollars ??

Banks here can be set up with various foreign currencies.  Not just USA dollar and euros. 

If you are a USA taxpayer, you may want to be sure to learn about the various rules regarding reporting accounts with greater than $10,000 dollars.  No big deal.  Just more a matter of reporting.  The banks will expect you to cooperate with information regarding your source of income, that sort of thing. .

Share this post


Link to post
Share on other sites
Headshot

Roderick, what is your home country? If you are an American, then getting an SRRV (and keeping your money in a bank) virtually guarantees that you will have to report your foreign investments to FATCA every year, which will put a spotlight on you for the IRS. It may not be a deal-killer for you, but it is certainly something to consider. Of course, if you are planning to buy a condo, or if you aren't an American, then there is no worry.

  • Like 1

Share this post


Link to post
Share on other sites
Cgu
16 minutes ago, Headshot said:

virtually guarantees that you will have to report your foreign investments to FATCA every year

The bank will do that for you if you want or not:D....not you........(not directly the bank - the bank will send it to BIR, which in turn sends it to IRS)

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Adsbygoogle

    Advert

  • Adsbygoogle

    Advert

×

Important Information

By using this site, you agree to our Terms of Use, Privacy Policy and Guidelines. We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue..