# Banking in the Philippines



## Cebu Citizen (Dec 13, 2013)

First of all Hello to everyone, I am new to this forum and glad to meet all of you in hopes that someone or several people can help guide me through my upcoming transitional period as I make my permanent move to the Philippines.

I have a couple of direct deposits from past employment as well as a disability from the VA and I need to secure a good bank facility with which to set up a new bank account in the Philippines but also have easy access to while I am still here in the US.

I need to set up the direct deposits now so I can begin closing my US accounts but I may also need to access the accounts while I am still here in the US if needed.

Does anyone have any suggestions of good banks to use or banks to avoid?

I am not sure if the banks in the Philippines have guaranteed deposits like here in the states, if the deposits are insured, etc. and any information that someone can share will be most welcome.

Thanks and I look forward to reading your comments.


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## jon1 (Mar 18, 2012)

First.. welcome to the forum!

Do not get rid of your bank accounts in the States. Also, keep a mailing address in the states for your State Residence Tax purposes (maybe a state that does not have Income Tax? like Florida, Texas, Nevada, etc. etc.). You will also need to have a Driver's license from that State.

Get a list of APPROVED banks within the Philippines for Direct Deposit from the VA/SSA.

Another option is just to write yourself a check for deposit to your US$ account in the Philippines. There is no fee. The down side is that your funds are not available for 4 weeks. Requires a little bit of forethought and preparation. But once set up it is easy and no fees.

To open an account you will need cash not a check for deposit. A lot of banks require $500 as minimum maintenance deposit.

I use BPI and have them convert to pesos upon withdrawal. Go with them, Metrobank or BDO.

PI banks only insure up to 500,000p. Also, you do not want to have more than $10,000 (combined between all accounts in your name) in country or you will have to be reporting that to the IRS using an FBAR.

I wouldn't bother with CD's over here. 

Avoid ATMs if at all possible. You get soaked in fees (Local bank fee, International Fee, Exchange fee). It's a ripoff. You also have to worry about the card getting compromised.

Before departing, DO notify your US Financial institutions that you will be using their Credit Cards in the Philippines. Otherwise your charges will get denied and it will be a PITA to get it fixed on this end (even with a free Internet Phone call)...


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## DrMark (Nov 6, 2013)

You seem to have some very good answers.. Maybe you can help me also. I would like to buy a condo in Cebu. The condo will cost $100,000. I have cash and would like to move that amount to the Philippines to buy the condo. Do you have any suggestions?

DrMark


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## jon1 (Mar 18, 2012)

DrMark said:


> You seem to have some very good answers.. Maybe you can help me also. I would like to buy a condo in Cebu. The condo will cost $100,000. I have cash and would like to move that amount to the Philippines to buy the condo. Do you have any suggestions?
> 
> DrMark


I can think of a couple of ways..

1. See if the Condo Owner has a US Bank account. You could do an in-country transfer and eliminate a lot of the hassle.

2. See if the Condo Owner has a US $ account in the Phil. Wire transfer the money directly into that account. This could take 3-5 business days for it to be available at the destination bank.

Most people of means and Businesses have a US $ account in the Phil.

If you are going to be in the Phil for at least 5 weeks, you could open up a US $ account locally, write yourself a check for deposit and incur zero fees. The check would take at least 4 weeks to clear/be available. Down side to doing it that way is that you will have to report this $ to the IRS by filing an FBAR Report of Foreign Bank and Financial Accounts (FBAR)

I would also look into any reporting requirements of the IRS for acquiring this property.


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## Cebu Citizen (Dec 13, 2013)

Thanks jon1 for the great information, it does however bring up a few additional questions. I hope I am not being too naïve here but I just want to fully understand what I should do and why.

You mentioned not getting rid of my bank accounts in the US. Why is this, if I am planning on staying in the Philippines for the remainder of my days? I have no family remaining in the US and currently have no plans to ever return after retirement in the Philippines.

I currently live in Tennessee, which is a tax-exempt state and I have a valid Tennessee driver's license as well. But this also brings up another question...I am of course assuming that the drivers license should remain valid and this means renewing the license periodically as it expires. Is this something that is difficult to do? Renewing a US State Drivers License while living full time in a foreign country and not actually living in the state where the license is issued? Which means doing it by mail or internet...(?) and probably paying the renewal fee by credit card.

Is it possible to get a Philippine drivers license and not have a US drivers license? And if so, what are the up sides or down sides to this option?

I do have a question about obtaining and maintaining a US address if I will not be living here. I am an only child and both parents have passed on, as well as my grandparents, aunts and uncles. I only have a few second cousins and a friend or two, so I really do not have anyone left in the US that I would want to reply upon for important or personal mail items, bank account information, etc. Any ideas on how I can get and keep a US mailing address if I am not living here and without involving other people who I may or may not be able to count on at all times in the future? I would prefer to handle all of my own mail and business without involving any one else. I am assuming that you have and are still maintaining a US mail address but it is my understanding that to have a US address, you must be living here, (or use a friend or family members address), and I cannot afford to keep a home in the US just for the sake of having an address. It seems like the little PO Box businesses also require a regular street address in order to rent one of their box spaces. So, I am puzzled how this can be done???

Again, Thanks for the great info and I hope I am not making more out of this than it really is...just trying to get all of my ducks in a row and do the right thing, the right way, the first time and fully understand why I am doing it.


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## jon1 (Mar 18, 2012)

Philippine banks only insure up to 500,000php(approx. $12,000), all amounts above that are not insured and at risk. Also, having that much money in the bank potentially makes you a target of criminals and corrupt officials. You also will be required to report all money above $10,000 outside of the U.S. to the IRS with the above aforementioned FBAR. Keeping the majority of your money stateside does help you keep your money protected and insured (up to $250,000). I would also set up all of your banking needs to be electronically available. 

I would look into the Tennessee's requirements on renewals. In Florida, you can renew online once. The next time has to be in person (every 8 years). I was also required to send an eye examination with my renewal form that was notarized. I had to get the doctor’s examination paper notarized by the US Embassy (cost $50). I paid the renewal fee by check as I was mailing it in (via my USPS PO Box at the RAO).

You can get a Philippine driver’s license without a US one. Having a US one does make it easier to avoid having to take tests, etc. They just photocopied mine and attached it to the application. You can drive legally in the Philippines on your US solely for 90 days (unless you have an international driving permit which is good for one year). You also may want to keep the US license valid in case you ever make a trip back to the US and need to rent a car.

I would look for some kind of mail forwarding service. Maybe someone else can chime in. I am also using my children’s address for my Florida residence as I have bills there in my name. I would eliminate all Financial Snail mail and go 100% paperless. Anything that can’t be made electronic I would use the FPO Address at the local RAO.


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## overmyer (Aug 15, 2013)

Cebu Citizen said:


> Thanks jon1 for the great information, it does however bring up a few additional questions. I hope I am not being too naïve here but I just want to fully understand what I should do and why.
> 
> You mentioned not getting rid of my bank accounts in the US. Why is this, if I am planning on staying in the Philippines for the remainder of my days? I have no family remaining in the US and currently have no plans to ever return after retirement in the Philippines.
> 
> ...


I maintain a US address via a private post office box with mail forwarding service (mine is located in Las Vegas). I have a Philippine Drivers License. My US Drivers Licensebis WA State. It expires in 2015. I have no intent to fly back to renew it and no longer have need of it.


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## bbazor (Nov 18, 2013)

overmyer: You stated that you have a USA post office box and that you have it forwarded. What do you have to do to set up the forwarding and how much does it costs?


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## Asian Spirit (Mar 1, 2010)

*Odds and Ends*



Cebu Citizen said:


> Thanks jon1 for the great information, it does however bring up a few additional questions. I hope I am not being too naïve here but I just want to fully understand what I should do and why.
> 
> You mentioned not getting rid of my bank accounts in the US. Why is this, if I am planning on staying in the Philippines for the remainder of my days? I have no family remaining in the US and currently have no plans to ever return after retirement in the Philippines.
> 
> ...


I too am an only child of deceased parents. I've lived here over 10 years and have never kept an address or mailing address back in the States. Never saw any need for it and still do not. 
If you do need to have things mailed here to the islands, the local "Philpost" mail service is not reliable and much of the mail goes missing. Anything that you can do electronically is the best. If however, physical mail is needed to be sent here, it is best to get a PO Box at a local VFW post here in the Philippines for safer mail handling. 

It will not (as far as I know) be possible to renew your US license from here. It would be of little or no use or value to keep one. Your US license is valid for only 90 days after you arrive here - weather you drive during that time or not. Therefore you will need to get a local drivers license. It is not expensive but a bit time consuming as things operate much slower here. So plan on taking a few snacks and cold drinks as your first license will likely take most all day to get. Renewal is faster and is usually done in two hours or so...

The biggest question is or should be, do you really want to Drive In The Philippines?


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## bbazor (Nov 18, 2013)

I tried the VFW post in Baguio. Although I am a veteran, I do not qualify. I am trying to find another way. So when you mentioned the PO box, it peaked my interest. I didn't realize that they had a forwarding service. Do you know what the charge is for the forwarding service?


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## Asian Spirit (Mar 1, 2010)

bbazor said:


> I tried the VFW post in Baguio. Although I am a veteran, I do not qualify. I am trying to find another way. So when you mentioned the PO box, it peaked my interest. I didn't realize that they had a forwarding service. Do you know what the charge is for the forwarding service?


So far as I know the VFW does not offer a forwarding service. If you "retired" from the military you do qualify for mail service that is carried AS US MAIL. However, if not retired from the military you can still get a PO box at the VFW. Mail travels via the local service but is more secure. Visit the website and also in person the VFW Post in Angeles City...
This is the largest VFW post outside of the continental United States and will be much better able to help and meet your needs.


Gene


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## bbazor (Nov 18, 2013)

Thank you Gene. I am still in the USA until sometime next year. I will check it out later.


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## overmyer (Aug 15, 2013)

bbazor said:


> overmyer: You stated that you have a USA post office box and that you have it forwarded. What do you have to do to set up the forwarding and how much does it costs?


All I had to do was fill out and return a signed and notorized USPS form (provided by the mail agent). I was even able at a later date to add my filipina wife's name to the box by sending one to them for her. The particular outfit I'm using in Las Vegas charges by quarter, semi annual and annual and has three box sizes. The longer you pay in advance for the box the lower it works out a month. The small box at quartely is $10/month. They accept payment via paypal. You then keep an additional fund for forwarding postage. They charge actual postage plus a buck or so for the service. You can access your mail box via the web to see contents (they notify via email when new mail is received), arrange/scheduke forwarding,etc. When I was researching via google, there were a number of outfits around the country offering such services. The one I use and have been happy with is called mail link plus.


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## Cebu Citizen (Dec 13, 2013)

Jet Lag...are these VFW mail services available on Cebu Island? I was unable to find a listing and are they open to someone like me? I am a disabled veteran and I will need to have some ground mail sent to me. Not all of my mail requirements can be made electronic...


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## jon1 (Mar 18, 2012)

Check out this link http://www.raocebu.org/ Try to contact them as they run the US Mail there.

Also here is a link the VFW in Cebu http://www.vfwpost12130.net/


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## Asian Spirit (Mar 1, 2010)

*Mail*



jon1 said:


> Check out this link Retired military in Cebu Try to contact them as they run the US Mail there.
> 
> Also here is a link the VFW in Cebu VFW Cebu City Philippines





Cebu Citizen said:


> Jet Lag...are these VFW mail services available on Cebu Island? I was unable to find a listing and are they open to someone like me? I am a disabled veteran and I will need to have some ground mail sent to me. Not all of my mail requirements can be made electronic...


I think Jon1 has the best idea with his post here. These sites should have good info for you. Might be a good idea to even invest in a phone call to them if need be.


Good Luck..


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## Cebu Citizen (Dec 13, 2013)

jon1...thanks for the great information about finding an appropriate banking facility...it looks like the thread has shifted from banking to mailing options and PO Boxes...I guess a lot of these questions and topics kind of blur together for those of us contemplating moving to the Philippines.


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## Phil_expat (Jan 3, 2011)

Cebu Citizen said:


> Jet Lag...are these VFW mail services available on Cebu Island? I was unable to find a listing and are they open to someone like me? I am a disabled veteran and I will need to have some ground mail sent to me. Not all of my mail requirements can be made electronic...


The mail service I use in Angeles is in the VFW but is handle by the RAO not the VFW. The mail room at the VFW in angels is a satellite of the RAO larger mail room in the Angeles RAO. I believe there is an RAO in Cebu.


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## DrMark (Nov 6, 2013)

My new bride is from Cebu and we are planning to move there soon. On one of my visits before we were married, I asked her if I could get a Phil driver's license... She said, sure no problem. After about 3 hours and about $10, I had one. I used my US license to avoid the test and used her address in Cebu for the residence. The Phil license will expire in January 2014 so I will get my renewal when I am there again in February. Having a Phil citizen wife makes things so much easier.


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