THE CONCEPT &

DEVELOPMENT OF
MONEY
 Opening a
Bank Account
In a world of cashless payments and wireless transfers,
a bank account is an immediate necessity for anyone.
Protecting your funds from theft and loss, it serves as a
secure space to deposit, withdraw, and manage money.
Besides, opening a bank account grants you access to a
wide range of financial services and tools, such as
debit cards, online banking, and mobile apps, to
simplify your transactions and easily control your
finances.
Whether it's your first banking experience or you're
looking to switch banks, this guide will provide
detailed instructions on how to open a bank account.
STEP1: SELECT AN ACCOUNT
TYPE

Before you ask yourself, “What do I

need to open a bank account?” you
should first make up your mind on the
type of account you want to set up.
There are two main options available for
you: checking and savings accounts.
Checking accounts are designed for daily
transactions, including deposits, withdrawals, and
payments. They offer easy access to funds through
checks, debit cards, and ATMs. Typically, they come
up with no or lower interest rates yet may have
monthly service fees.

As the name suggests, savings accounts are meant to

save money over time. Featuring higher interest rates
than checking accounts, they are designed for less
frequent withdrawals to encourage savings.
To decide which type of account best suits your needs and
expectations, carefully evaluate your financial goals, spending
habits, and saving objectives. A few key factors to consider when
making your final choice include:

•Location and Accessibility: Consider the bank's physical

locations and ATMs. Is there a branch near your home or
workplace? Do they have an extensive ATM network?
Accessibility is vital for your convenience;
•Fees and Charges: Different banks have varying fee structures.
Look out for monthly maintenance fees, ATM fees, overdraft
charges, and any other payments associated with the account.
Some financial institutions ensure fee waivers based on factors
like minimum balances or account activity;
•Interest Rates and APY: If you're considering a
savings or money market account, pay attention to the
interest rates offered. Annual Percentage Yield (APY)
is a crucial metric to compare, as it reflects the total
return you can expect on your deposit;
•Service Level: Check for additional services provided
by the financial institution to enhance your banking
experience. Mobile apps, functional online banking,
and efficient customer support are all useful tools in
this case.
STEP 2: WHAT DO YOU NEED TO OPEN A
BANK ACCOUNT?

Whether you wonder how to open a new bank account

or how to start a bank account in yet another financial
institution, you’ll need to provide specific
documentation and personal information to verify your
identity and comply with regulatory requirements. This
step ensures that the bank can establish a secure and
legal relationship with you as a customer.
•Government-Issued Identification: It can be any official
document that includes your photo and personal information,
such as a driver's license, passport, or national ID card;
•Proof of Address: This can be in the form of a utility bill
(electricity, water, gas), a lease agreement, or a government-
issued document like a tax return or voter registration card;
•Social Security Number (SSN) or Tax Identification
Number (TIN): It’s essential to provide one of these docs for
tax reporting and to comply with anti-money laundering
(AML) regulations;
•Initial Deposit: Depending on the bank and the type of
account, you may need to make an initial deposit to open the
account.
NOTE: Before visiting the bank, make
sure that your identification documents
are up-to-date and not expired. Different
institutions may also have specific
requirements, so you’ll also need to
check them beforehand. It's a good idea
to call or visit the bank's website to get a
comprehensive list of what they expect
from applicants.
STEP 3. SET UP THE BANK
ACCOUNT

Once you've gathered the required

documents and information, it's time to
submit your application. In most cases,
when considering how to create a bank
account, you’ll have two options. You
can either apply online from the
comfort of your own home or visit a
physical branch in person.
How to Set up a Bank Account Online?

On the website of the chosen bank, locate the

application form and select the desired
account type. Complete the form and upload
scanned copies of documents as required.
Review the info to ensure all details are
correct. Then, submit the application
electronically. The bank will typically
provide a confirmation message or email
with details about the next steps.
How to Open a Bank Account In-Person
Locate a nearby branch of the bank and ask a
financial representative to help you pick the
account type and guide you through the
application process. You will have to fill out
the application form, and the bank rep will
make copies of the required documentation for
their records. Once the application is complete,
the bank representative will confirm the details
and provide any additional information you
may need.
STEP 4: GET STARTED

When you receive confirmation from the bank

that your application is approved, it’s time to
fund your new account. You can do it through:

•Cash deposit in the bank branch or via an ATM;

•Check deposit in the bank or mobile app;
•Wire transfer from another bank or individual;
•Transfer from your other account.
Opening a bank account is a
significant step toward financial well-
being. It provides security and
accessibility to your funds, along with
a range of tools to manage and grow
your money effectively. Besides, it
helps build solid credit and financial
history.
What are the advantages of having a
bank account?

Opening a bank account provides you

with financial convenience and
security. While securing your cash
from physical theft, you can use it as
you need and manage it efficiently.
How do I choose the best bank and
account type for me?

When you look into how to make a bank

account work for your immediate needs
and long-term financial plans, you
should estimate your current financial
situation as well as consider your
financial goals.
What documents and information do I
need to open a bank account?

You’ll need to provide your personal

info, including your address and SSN,
and documents to verify your identity,
such as a passport, ID card, or driving
license.
High-Interest Online Savings Account in the
Philippines:

1. DiskarTech
Interest rate: 6.5%
2. GoTyme Bank Go Save
Interest rate: 5%
3. Tonik Bank Stash
Interest rate: 4.50% (Group Stash) / 4% (Solo Stash)
4. SeaBank Philippines Savings
Interest rate: 4.5% (₱0 to ₱250,000 balance) / 3% (Above
₱250,000 balance)
5. #UNOready Savings Account
Interest Rate: 4.25% (₱5,000 and up balance) / 3.50%
(Below ₱5,000 balance)
Here are the leading thrift banks in the country
based on BSP data.

1. PSBank
2. China Bank Savings
3. Philippine Business Bank
4. City Savings Bank
5. Bank of Makati
6. Sterling Bank of Asia
7. BPI Direct Banko
8. Producers Savings Bank
9. First Consolidated Bank
10.UCPB Savings Bank
Different Types
of Plastic Cash
You probably carry some cash and a hoard of cards!
From insurance cards and business cards to visa
cards, our wallets play house to many cards.
The most common in that stash is the payment cards
or plastic cash.
Most people love the convenience and security of
plastic money. You can carry your entire bank
account in your pocket!
Since they make our transactions smooth and more
convenient, understanding some of the various
payment cards is in order.
What is a payment card (plastic money)?
These are cards issued by banks or other
financial institutions to their customer to use
as a means of transaction.
The card owner can access their funds in the
bank or credit account. They can withdraw
from an Automated Teller Machine or make
electronic cash transfers for payment of goods
and services. Payment cards are also known
as plastic money.
Types of plastic money

The most common types of

plastic money are debit cards,
credit cards, ATM cards, and
charge cards.
Debit card
This payment card is used to deduct funds directly from a
consumer's bank deposit account. You can use it to pay for
goods and services electronically or withdraw your money
from an ATM.
Debit cards are also known as bank cards or check cards.
There are various types of debit cards used in different
countries, but the most common include:
1. Visa debit card
This is one of the most globally accepted debit cards, with an
international presence of around 200+ countries.
As long as the card has the visa logo, you can use it to shop,
travel, and pay your utility bills directly from your bank
account while you are thousands of miles away.
2. MasterCard debit card
A MasterCard is essentially used worldwide. It offers 24-hour
services of banking transactions in ATMs and online for booking
tickets, traveling, and shopping.
3. Maestro Debit card
It is a debit card brand issued by MasterCard and used mainly in
India and other countries. You can also use this debit card for
online transactions.
4. EMV cards
EMV is an abbreviation for Europay, MasterCard, and Visa.
These cards have excellent security features as they use smart
chip-based technology.
All banks are replacing ordinary debit cards with EMV chip
s
since they are difficult to copy data and replicate.
Credit cards
A credit card allows you to make transactions
on loan. The bank, or credit issuer, advances
money to be paid to the merchants, and you
pay it back later when you reach your credit
limit.
With this card, you can spend and then repay
later.
There are many types of credit cards, which
are divided into two groups: Secured and
unsecured.
Secured credit cards are issued upon paying a down
payment as a security. Essentially, it is like borrowing
your own money. These credit cards are primarily
issued to people without a credit rating or who do not
want to have an overdraft.
Unsecured credit cards: The financial institution issues
one without having to provide security or collateral for
the credit loan. You use the credit card for various
transactions and pay upon reaching the credit limit.
Your credit score determines the amount the card
provider will let you spend before reaching your limit
and trusting that you can pay it back.
Charge Cards

A charge card is a payment card that offers

enormous credit limits to cardholders.
They are mostly used by businesses or wealthy
people with huge transactions. Payment
accrued is paid at the end of the month, and no
interest is charged. However, non-payment or
delayed payment usually attracts huge fines.
ATM cards

An ATM card is a payment card issued by a

bank or other financial institution to withdraw
funds, majorly from an automated teller
machine.
Unlike the debit card, which can be used for
several transactions in major stores and online
transactions, an ATM card is only used to
withdraw from an ATM.
Prepaid cards

Retail and departmental stores are the leading

issuers of prepaid cards. Cash is loaded on the
card, and the cardholder can shop in the store
without carrying cash.
Upon depletion of the funds, cash can be
reloaded for future use if the customer is
interested.