Aside from budgeting, choosing where to save can be one of the most important decisions of your life. Without effective savings, your money is more likely to be affected by inflation. Here are some of the best ways you can save your money in the Philippines:
Table of Contents
1) Digital Savings Accounts
Digital Savings Accounts offer the highest interest and are insured for up to PHP1,000,000 (million) by PDIC. That means: if the bank goes bankrupt, the government will pay you the amount of your bank account. Here are some of the best digital savings accounts in 2025:
GoTyme
Interest Rate: 3.5% / year, paid monthly
Other benefits: PHP8 Transfer Fee (next transfer is free), USD Deposits, GoTyme Rewards (Cashback).
Maya
Interest Rate: 3.5% / year, paid daily
Other Benefits: Access to time deposits, daily interest, new credit cards
Tonik
Interest Rate: 4.0% / year, paid monthly
Other Benefits: Variety of Loan Products, first digital bank in the country.
UNO Digital Bank
Interest Rate: 3.75% / year (for deposits above PHP5,000)
Other Benefits: Integrates with GCash
Please keep in mind though that: Digital Banks tend to change their interest rates a lot over the years. The interest is also subject to a 20% withholding tax: which means that for every 1% banks offer, only 0.8% will be paid to you.
Pros to Digital Banks
- Access to Money Anytime
- Guaranteed up to PHP1,000,000 by the government (in case of bankruptcy)
Cons to Digital Banks
- Volatile Interest Rates
- 20% Withholding Tax on Interest
Best for: People who need money in the near future.
2) Pag-IBIG MP2
One of the more popular ways to save is through: Pag-IBIG MP2. Pag-IBIG MP2 is a government-run program that allows Filipino citizens to save in “time deposit” like products for 5 years at a time. Here are the requirements to open a PAG-IBIG MP2 account:
- Pag-IBIG Membership ID (MID) Number
- One Valid Government ID
- Selfie Photo
- Proof of Income
- Philippine Passport (For Former Naturally-Born Filipinos)
- Certificate of Reacquisition/Retention of Philippine Citizenship (if applicable)
How Pag-IBIG MP2 works is that they accept your money; this money is then loaned out to people availing loans (such as for personal emergencies or for a home). The profits gained from the loans is distributed as “dividends” to Pag-IBIG MP2 savers.
The only catch is that: your funds are locked up for five (5) years. You can withdraw them, but only for certain conditions such as emergencies and you won’t receive the dividends for that year. Be sure that if you’re placing money in Pag-IBIG MP2: you won’t need it in the near future.
Pros to Pag-IBIG MP2
- Tax-Free Interest Rate
- Backed by the government completely
- Relatively High Interest Rates as of 2024
Cons to Pag-IBIG MP2
- Lock-up for five (5) years
- 20% Withholding Tax on Interest
Best for: Savers who need to maximize for a big purchase five (5) years from now
3) Money Market Funds
Money market funds are a form of mutual funds that invest in short-term government bonds (fancy talk for: we loan the government money for 30-360 days). This form of savings was created for investors with large sums of money to invest. When you save in a money market fund, you’re effectively investing in government bonds for a low annual fee.
There are several money market funds for you to save in. Here are just a few examples:
Interest rates range from 2.5% to 4.5%. However, unlike Digital Banks and Pag-IBIG MP2, this rate is not guaranteed from the beginning and instead simply earned throughout the year. It is also not paid out in cash, but returns instead are allocated to the value of your asset.
Any of the options are good because they all pretty much invest in the same (or similar) assets. You can invest by opening a stock account through COL Financial.
Pros to Money Market Funds
- Access to Short-Term Government Bonds (guaranteed by government indirectly)
- Integrated with other fund or stock investment services
Cons to Money Market Funds
- Annual Management Fee (0.2%-0.5%)
- Relatively low interest rates for some periods.
- Early Redemption Fees (for redeeming 7 days)
Best for: stock or mutual fund investors who want to hold onto cash, but quickly deploy it when they need.
Conclusion
Overall, choosing your savings strategy is one of the most important decisions you can make as a person. It can determine how well you can save for any emergencies and protect against inflation. Remember to save regularly and put aside money for retirement and for your investments! Happy saving!