# Banking Suggestions



## Bizo (Jun 15, 2016)

I'm in the process of preparing for a move to Metro Manila, specifically BGC, for a one-year contract with a locally operating company. They will pay a portion of my salary in PHP and a larger portion in USD. They will direct deposit post-tax net amounts in accounts I designate. In the states I use Bank of America. Obviously I will spend the PHP and look to bank the USD well paying as little as possible in transfer fees, currency exchanges, etc. 

Can anyone share any advice or suggestions on recommended banks or specific accounts that are good for this nature.

Thanks in advance!


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## bidrod (Mar 31, 2015)

Check Philippine National Bank(PNB) in LA or NY. They can open an account with their branch and a branch you choose in the Philippines as far as I know.

Chuck


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## fmartin_gila (May 15, 2011)

Careful on that!! The banks here do not operate the same as the rest of the world. Each branch seems to be a separate entity or at least that is how they operate. Determine where you will live prior to opening an account as you may have to go to some other location to withdraw or be able to utilize your funds. There was quite a discussion about this recently on a thread.

Fred


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## Bizo (Jun 15, 2016)

fmartin_gila said:


> Determine where you will live prior to opening an account as you may have to go to some other location to withdraw or be able to utilize your funds.
> 
> Fred


Seems like there is PNB branch in the Fort and, in that case, I'd wait until my arrival to set-up an account.

I'll dig around and see if I can find the discussion you referenced. Thanks Fred!


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## bidrod (Mar 31, 2015)

I agree with Fred's basic comment, definitely the banking system here is not the same as the US. BoA is BoA in any branch their, most banks here from what I have seen are either individual operations under the big umbrella(bank name) owned/managed by individuals/corporations. The reason I suggested PNB is that you could have everything set up in advance to your arrival. Transferring funds if you need to is costly due to transfer fees and exchange rates. Since you bank the same as I do with BoA it will cost you $35 to transfer pesos(with a terrible exchange rate) and $45 to transfer dollars. Yes you can use WU, Xoom, etc. to make transfers but again there is a charge per transaction plus bad exchange rates. Using PNB with the US and Philippine account transfers can be performed online as I understand it. They allow you to choose the branch you prefer in the Philippines to have your account in. I did not utilize PNB in 2010 when I moved here because there was not a branch close to us at that time. We now have a branch across the street from our BDO branch. Would definitely considered it if I were making the move now.

Chuck


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## Bizo (Jun 15, 2016)

bidrod said:


> I agree with Fred's basic comment, definitely the banking system here is not the same as the US.
> 
> Chuck


Makes sense, I mean not really but I understand what you're saying. My thinking was PHP is fine because it most likely won't be exchanged, just withdrawn at ATM or spent via check (ie. rent) and debit card. The USD (which from my understanding would go into a specific-USD account linked to the PHP account) I would either use credit cards with no international charges or fees and simply pay those from the new PNB account or wait as long as possible as transfer to BOA as few times as possible to minimize the flat amount fees while thanking the banking overlords for not charging a percentage.


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## esv1226 (Mar 13, 2014)

I would avoid fees associated with transfering money. 
Open peso and dollar accounts in the Philippines. Keep the US checkbook and write yourself a check and deposit. There are no fees to deposit to your account. But banks charge fees to send and receive funds (unless you have the same bank).
Keep the peso balance to cover needs - one can readily move from dollar to peso account but not the other way around. Local banks take 3-4 weeks to clear checks . I would keep a dollar balance to cover emergencies.


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## DonAndAbby (Jan 7, 2013)

Bizo said:


> Makes sense, I mean not really but I understand what you're saying. My thinking was PHP is fine because it most likely won't be exchanged, just withdrawn at ATM or spent via check (ie. rent) and debit card. The USD (which from my understanding would go into a specific-USD account linked to the PHP account) I would either use credit cards with no international charges or fees and simply pay those from the new PNB account or wait as long as possible as transfer to BOA as few times as possible to minimize the flat amount fees while thanking the banking overlords for not charging a percentage.


After reading your most recent post, I think I understand your situation as this:

1. Your employer will split your pay into pesos and dollars, to be direct deposited into a PHILIPPINE bank.
2. The pesos should cover your normal living expenses. The dollars are backup / savings.
3. Your main direction for transferring money will be to transfer from your Philippine dollar account to your U.S. dollar account at B of A.

Is this correct?

If you can find a bank like PNB that will allow you to transfer dollars from your Philippines PNB dollar account to a U.S. PNB dollar account (or vice versa), for free, that would be nice, but I doubt that it exists. Also, if it does exist, your U.S. PNB account probably will not offer much in terms of U.S. domestic services. You might have to transfer the money to B of A for a fee, but it would still be less than an Int'l transfer.

Also, when choosing a Philippine bank, look at all their fees. I seem to recall that PNB was not well liked by expats for many reasons including tons of fees. BPI seems to get good comments from expats and my branch here is Subic is great, but as mentioned, all the branches are different.


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## Bizo (Jun 15, 2016)

esv1226 said:


> Keep the US checkbook and write yourself a check and deposit. There are no fees to deposit to your account.


This is brilliant. I can't believe I didn't think of this myself.


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## Bizo (Jun 15, 2016)

DonAndAbby said:


> After reading your most recent post, I think I understand your situation as this:
> 
> 1. Your employer will split your pay into pesos and dollars, to be direct deposited into a PHILIPPINE bank.
> 2. The pesos should cover your normal living expenses. The dollars are backup / savings.
> ...


Yes, exactly.

It's my understanding many of my co-workers choose PNB because you can have two different currency accounts but yes, they have complained about them. It seems like the first expat that made the move to Manila made decisions and the rest are just following because of ease and convenience. Thus why I posted on the site ..


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## DonAndAbby (Jan 7, 2013)

Bizo said:


> Yes, exactly.
> 
> It's my understanding many of my co-workers choose PNB because you can have two different currency accounts but yes, they have complained about them. It seems like the first expat that made the move to Manila made decisions and the rest are just following because of ease and convenience. Thus why I posted on the site ..


Check out Citibank. They have some Manila branches and I heard that you can transfer money between your U.S. Citi account and your Philippines Citi account, for free!

FYI, all the major Philippines banks will offer accounts in all the major currencies such as USD, AUD and others.


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## Cebu Citizen (Dec 13, 2013)

fmartin_gila said:


> Careful on that!! The banks here do not operate the same as the rest of the world. Each branch seems to be a separate entity or at least that is how they operate. Determine where you will live prior to opening an account as you may have to go to some other location to withdraw or be able to utilize your funds. There was quite a discussion about this recently on a thread.
> 
> Fred




That is ABSOLUTELY CORRECT!!!!!

The banks here in the Philippines might all have the same name on the front of the bank but they are all operated independently of each other as if they were a separate franchise! You need to know exactly where you will be living before you open up a local account because there are many transactions that can only be performed in your original branch. Other transactions can be done in other branches BUT they will charge you an extra processing fee for any transaction not conducted in your original branch!

The peso account should not be a problem...just open the account at a bank branch that is close to your home or your work place as long as it is convenient to you. Get an ATM Card attached to that account and you are good to go...

But be very cautious of the US Dollar account...if you open it in the US...no problem. If you will have the amount direct deposited here in the Philippines in a Philippine Bank, The restrictions are numerous and can create multiple hassles. If you ever want to make a withdrawal for any reason on your US Dollar account...you CANNOT do it on the internet...no online banking for Direct Deposit accounts here. AND No ATM Cards allowed either...and "IF" you do make a withdrawal...it MUST be made in person...face to face in your original bank branch ONLY!!! NO EXCEPTIONS!!!

And...US Dollar Direct Deposit Accounts made to a bank here in the Philippines...MUST be made to a US Approved Bank...you cannot just choose any bank.


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## Cebu Citizen (Dec 13, 2013)

Cebu Citizen said:


> That is ABSOLUTELY CORRECT!!!!!
> 
> The banks here in the Philippines might all have the same name on the front of the bank but they are all operated independently of each other as if they were a separate franchise! You need to know exactly where you will be living before you open up a local account because there are many transactions that can only be performed in your original branch. Other transactions can be done in other branches BUT they will charge you an extra processing fee for any transaction not conducted in your original branch!
> 
> ...




SORRY GUYS...I was not completely clear here...my post does say direct deposit but I need to be very clear...a regular US Dollar Account is not the issue outlined in my post...the issue is only with the US Dollar DIRECT DEPOSIT ACCOUNTS ONLY.....


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## bidrod (Mar 31, 2015)

Cebu Citizen said:


> SORRY GUYS...I was not completely clear here...my post does say direct deposit but I need to be very clear...a regular US Dollar Account is not the issue outlined in my post...the issue is only with the US Dollar DIRECT DEPOSIT ACCOUNTS ONLY.....


Maybe I am wrong but this is a US dollar account from a company here in the Philippines which is part of his payroll. I don't see where the limitations as to access via direct deposit that apply to SS, Mil Ret, VA, etc. apply in his situation. The limitations applied are to preclude payment if the individual died.

Chuck


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## Bizo (Jun 15, 2016)

bidrod said:


> this is a US dollar account from a company here in the Philippines which is part of his payroll.


Correct.


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## WestieRed (May 7, 2013)

Bizo said:


> I'm in the process of preparing for a move to Metro Manila, specifically BGC, for a one-year contract with a locally operating company. They will pay a portion of my salary in PHP and a larger portion in USD. They will direct deposit post-tax net amounts in accounts I designate. In the states I use Bank of America. Obviously I will spend the PHP and look to bank the USD well paying as little as possible in transfer fees, currency exchanges, etc.
> 
> Can anyone share any advice or suggestions on recommended banks or specific accounts that are good for this nature.
> 
> Thanks in advance!


IMO Charles Schwab is the best bank to use. They don't have foreign fees and reimburse all ATM fees.


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## BGCExpat (Oct 26, 2015)

DonAndAbby said:


> Check out Citibank. They have some Manila branches and I heard that you can transfer money between your U.S. Citi account and your Philippines Citi account, for free!
> 
> FYI, all the major Philippines banks will offer accounts in all the major currencies such as USD, AUD and others.


+1

I use CitiBank and HSBC with corresponding linked accounts in the US for transferring money. It's free and you can do it online... Go to a branch of either bank and ask a new accounts rep, they will be happy to walk you through the process. I like Citi better, it just seems easier...


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