Checking Account 101 Series: Episode 2
Opening a Checking Account
Checking accounts are primarily tools for making a big chunk of payments. With this, you can set up automatic payments and money transfers to and from your account through a check or post-dated checks.
Unlike savings accounts, checks are there to make your money transactions faster and hassle-free.
How to Open a Checking Account?
Right now, due to the necessary documentary requirements to be submitted, you still need to visit the bank physically to apply for a checking account. Although there are banks that have an online queuing system so you do not have long to wait for your turn.
What are the Requirements to be Submitted to Open a Checking Account?
At least (2) two Valid . Valid IDs are government issued IDs such as but not limited to Driver’s License, Passport, Voter’s ID, etc. Valid means they are not yet expired. Some IDs do not expire but some, like the driver’s license and passports have expiry dates. Also, some banks permit only (1) valid ID.
Legal Age: You must be at least 18 years old. Otherwise, you can open a joint account with your legal guardian.
Utility Bill: Banks require you to present the most recent utility bill as proof of residence since your address is reflected there.
Initial Deposit: Most banks in the Philippines require an initial deposit when opening a checking account. They only vary with the amount and depending on the type of checking account you wish to open. Also, some banks require an already established SAVINGS ACCOUNT with them that’s active for at least 6 months.
Types of Checking Account
A Regular Individual Checking Account is designed for Personal use of individuals who need to issue checks. These accounts may or may not earn interest.
A Business Checking Account is designed for corporate owners. They require a higher initial deposit, maintaining balance and two signatories on a single check. This always earn interest.
A US$ Checking Account allows you to issue checks in US Dollars. This applies only if the currency of your bank account is also in US Dollars.
Choosing the Best Bank to Open A Checking Account
A bank that has a mobile app. Of course we all want convenience.
Low or No Maintaining Balance required: This is important because if your balance falls below the maintaining balance at the end of each month, the bank will charge a fee. Minimal but a fee nonetheless. It will be automatically debited from your account.
Higher Interest Rates to earn per Annum
Low Maintaining Balance required to earn interest
Low-Fees Checking Account: Most banks charge fees but vary on the amount. These fees include in-bank transactions and other charges if you fall below the required maintain balance.
Checkbook Cost: A checkbook is a booklet with at least 100 sheets of checks. It usually costs P175 to P250 per checkbook.
Congratulations! You now have a checking account! All you have to do now is wait for the bank to issue you your checkbook so you can start writing your checks.
But wait! You cannot write checks yet unless your checking account has enough fund in it. There are grave consequences when you issue a check when there is nothing in your account.
Stay tuned for our next episode of our Checking Account 101 series: FUNDING YOUR CHECKING ACCOUNT.
Just so you know, one of the primary requirements to apply for a loan with us is a Checking Account. So Open one now and loan up to ₱2 MILLION at only 1% per month. MESSAGE US TO LEARN MORE!