# DOLLARS versus PESOS



## Cebu Citizen (Dec 13, 2013)

OK guys...I promise I'm really not stupid, (I have two upper level college degrees, own a very successful small business and I am the Executive Director of a World Wide Nonprofit Organization), but I am feeling kind of dense right now because I feel like I am missing something here...

Can someone tell me the "FULL" and "COMPLETE" differences between having a dollar account at a Philippine based banking facility or having a Peso account? I get little bits and pieces from several different past threads but none seem to explain the differences really clear or the reasons for each.

Is it purely for the exchange rate? Why would anyone need one account over the other? Doesn't it all come out about the same in the end...if you get dollars in a dollar account and later exchange them for pesos...or have a peso account and the dollars are exchanged at the rate available at the time of the actual deposit? Or is there more to it than this?

Why would anyone need US Dollars in the Philippines if we are exchanging them for Pesos to pay our bills?

Does it have anything to do with direct deposits from the VA or Social Security?

I would appreciate someone shedding some very bright light on this topic so I will once and for all fully understand why we should have one type of account over another...what's required to open each account and the pros and cons of each...

Thanks in advance for the awesome responses that I know will come from this great group of ExPats...I know my question is in good hands!


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## 197649 (Jan 1, 2013)

Well I use it because my VA check is deposited into a $ account here. 
If you have an account in the US and transfer to a PESO account here.
You have the cost of the transfer from your US bank some banks here also charge you when it is deposited into your PESO account. Then you have the exchange rate at the bank. 
If you get paid in US dollar from your company is it direct deposited to a bank in the US or here? 
Bottom line do you need a $ account depends on what you are doing and do you need USD here? You certainly need a PESO account.


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## petesmith (Jul 25, 2014)

Most pension's or SS require dollar account for direct deposit, also direct deposit saves money on transfers, also more secure, you personally have go to bank to change to peso, no other person allowed, not even wife,, peso account with debit card allows you carry less, safer too, thanks for the post


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## 197649 (Jan 1, 2013)

petesmith said:


> Most pension's or SS require dollar account for direct deposit, also direct deposit saves money on transfers, also more secure, you personally have go to bank to change to peso, no other person allowed, not even wife,, peso account with debit card allows you carry less, safer too, thanks for the post


Some banks require that you personally go to the bank and withdraw the money and then buy peso or deposit it in your peso account in the same bank. 
It is very inconvenient if you must go to the bank every time you need to get peso or move money. Metrobank and I believe PS Bank will not allow you to move money via the internet, that's their policy. China Bank on the other hand does allow you to do so.


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## Phil_expat (Jan 3, 2011)

As all have said, a dollar account is a means of getting pesos to a dollar account that one has either a direct deposit or deposit personal checks. My China Bank account for USA SS direct deposit has to be a separate account and they do not allow internet or ATM access. It is not the Bank that requires this but USA SS. They want to make sure it goes to me only and I am still alive. China Bank offers a special exchange rate if over $1,000 and from a dollar saving accounts that is usual equal or higher than the black market.


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## JShannon (Jan 28, 2014)

A Q regarding that, with Filipino banks the max amount covered by the banks is 500K pesos. With that in mind why would anyone want to keep much money here. What is the $ amount covered by the local banks if you have a CAD of USD account?


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## Phil_expat (Jan 3, 2011)

I also have to agree. The SS check I said was deposited to China Bank is actually my daughter’s benefits. The USA required I have a Phil Bank account for direct deposit of her money. All my deposits go to a USA Bank. I make sure my total bank balance at China Bank never go over $9,000.


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## 197649 (Jan 1, 2013)

lastyle7 said:


> Agree, No way would I have my SS check directly deposited in some 3rd world country.
> 
> Better to have it sent directly to your US bank and then write a check or pay a few dollars
> to Western Union yourself money or use your credit card to make most purchases and pay
> ...


I am kind of wondering why. Are you afraid the banks are unstable here? If so just think about the banks in the U.S. look at BOA. You see there is corruption there as well. Now granted there are banks here that are like mom and pop stores. Also the guarantee is lower than the U.S. Any bank can fold. I want my money near me I can go to the bank today draw out XXXX and do what I want like buy a new Refrigerator or TV without waiting for the bank to transfer it. I also believe you don't keep all your eggs in one basket. I maintain a bank account in the U.S. but it is mainly for my credit card (emergency) But to each his own. You must do what you are comfortable with


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## JShannon (Jan 28, 2014)

I think there is a big difference. In Canada the CDIC insures $100k which is substantially more than P500k but as it is said above we all must do whatever we are comfortable with.

BTW with Metrobank you can withdraw 30k a day through an ATM.


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## cvgtpc1 (Jul 28, 2012)

JShannon said:


> BTW with Metrobank you can withdraw 30k a day through an ATM.


But is it still 10k per transaction?


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## Phil_expat (Jan 3, 2011)

c_acton98 said:


> I am kind of wondering why. Are you afraid the banks are unstable here? If so just think about the banks in the U.S. look at BOA. You see there is corruption there as well. Now granted there are banks here that are like mom and pop stores. Also the guarantee is lower than the U.S. Any bank can fold. I want my money near me I can go to the bank today draw out XXXX and do what I want like buy a new Refrigerator or TV without waiting for the bank to transfer it. I also believe you don't keep all your eggs in one basket. I maintain a bank account in the U.S. but it is mainly for my credit card (emergency) But to each his own. You must do what you are comfortable with


I met the owner of a food stand in SM Clark. He told me the bank he bank at went default (can’t remember the bank’s name). Told me the bank’s insurance never paid him. He lost all his money!


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## Phil_expat (Jan 3, 2011)

JShannon said:


> I think there is a big difference. In Canada the CDIC insures $100k which is substantially more than P500k but as it is said above we all must do whatever we are comfortable with.
> 
> BTW with Metrobank you can withdraw 30k a day through an ATM.



I was told by a friend that at Citi Bank ATM one can draw dollars or pesos, $3,000 dollars a day from a dollar account. I was also told their exchange rate is very bad. I was going to open an account there but I thought their $2,500 minimal balance is ridicules


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## Cebu Citizen (Dec 13, 2013)

I am still not seeing an apples to apples comparison between the two different account types. I see the advantages of both but I don't have all the facts to distinguish one account type from the other. If I have my Social Security check and my VA check both deposited in a US bank...and I want to set up automatic monthly transfers from the US bank to a bank in the Philippines...I am really wondering which should I get? A Dollar Account or a Peso Account...

If the only clear difference is saving a few pesos with the available exchange rate, I am not sure it is worth the hassle of playing the numbers game every time I need some money and then having to withdrawal US Dollars from my Philippines bank account and then go find a Money Exchanger...one extra step that I am not sure is worth a few pesos in savings.

I want to have access to my money on a regular basis and for really large purchases, I can always use my credit card and pay the payments or balance online very easily and not have to worry about transfers or fees or time delays, etc. (As long as I have internet access).

I agree with not having all of my eggs in one basket and having multiple options for accessing my funds as needed.

My intention was to have a certain amount transferred from my US bank to a bank in the Philippines on a routine regular basis..."X" number of dollars sent on the first of every month for a very low set fee offered by my bank in the US and they already have several banks that they do business with in the Philippines.

In the US, I use Wells Fargo Bank and they have partners in the Philippines with banks like BPI and MetroBank and several others.

Keeping the bulk of my money safely tucked away in the US Banks and having a regularly scheduled transfer to my bank in the Philippines plus the use of my online Credit Card account with a significantly large available balance seems to cover most all of my needs...plus, I can always write and deposit a check drawn on my US bank if ever I need any additional funds...BUT I am still trying to decide if my Philippine bank should be a Dollar Account or a Peso Account.

I already have a peso account in the Philippines but I am trying to decide if I should open a dollar account or not...so far it appears that I really don't need to do this as long as my direct deposits are being deposited in my US bank.


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## Cebu Citizen (Dec 13, 2013)

Phil_expat said:


> I met the owner of a food stand in SM Clark. He told me the bank he bank at went default (can’t remember the bank’s name). Told me the bank’s insurance never paid him. He lost all his money!


This is exactly why none of us should put all of our life savings into one financial institute...it does not matter if it is in the US or Canada or the Philippines..."ANY" bank can fail and there is always a chance that we could lose everything.

I have my peso account at one bank in the Philippines right now and my Fiancée has her account at a different bank just for this reason. Sometimes it can be a slight hassle when the lines are long but if any bank ever fails, we will not be tossed out in the rain...


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## JShannon (Jan 28, 2014)

cvgtpc1 said:


> But is it still 10k per transaction?


Yes it is still 10k per transaction. I thought it was pretty funny that they charge you 11Pesos if you withdraw from a different bank when in Canada it would be $2-3 minimum but I guess it is all relative to the value of the money.

I have on occasion had to withdraw money from my Canadian account while here, then the bank here charges P200 and the bank back home charges $3, having to do it that way can add up quickly.


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## George6020 (Apr 18, 2014)

Cebu Citizen said:


> I am still not seeing an apples to apples comparison between the two different account types. I see the advantages of both but I don't have all the facts to distinguish one account type from the other. If I have my Social Security check and my VA check both deposited in a US bank...and I want to set up automatic monthly transfers from the US bank to a bank in the Philippines...I am really wondering which should I get? A Dollar Account or a Peso Account...
> 
> If the only clear difference is saving a few pesos with the available exchange rate, I am not sure it is worth the hassle of playing the numbers game every time I need some money and then having to withdrawal US Dollars from my Philippines bank account and then go find a Money Exchanger...one extra step that I am not sure is worth a few pesos in savings.
> 
> ...


Considering your situation, it appears that it doesn't really make sense to have BOTH accounts here....probably just the Peso account for you, since you pay online, and have access to your accounts in the US if/when needed. 
I think for those of us who do have BOTH USD and Php accounts, its mostly convenience, and having USD nearby.


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## cvgtpc1 (Jul 28, 2012)

George6020 said:


> Considering your situation, it appears that it doesn't really make sense to have BOTH accounts here....probably just the Peso account for you, since you pay online, and have access to your accounts in the US if/when needed.
> I think for those of us who do have BOTH USD and Php accounts, its mostly convenience, and having USD nearby.


Hi CC,
I don't know and don't have PI peso or USD accts so can't really comment on it but if the USD acct is free or low overhead then why not? Then if you get in a pickle and realize you need one you have it. Then you have ALL bases covered just in case. In your field you know the value of preparation so why not?

I'm sure others can chime in on the fees and such.

I'm also a fan of Wells Fargo and it's link to BPI, something I'll probably end up setting up some day.


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## Cebu Citizen (Dec 13, 2013)

George6020 said:


> Considering your situation, it appears that it doesn't really make sense to have BOTH accounts here....probably just the Peso account for you, since you pay online, and have access to your accounts in the US if/when needed.
> I think for those of us who do have BOTH USD and Php accounts, its mostly convenience, and having USD nearby.


Thanks for the feedback George6020...but I guess this touches on the main topic...having US Dollars close at hand. Why does anyone actually need access to US Dollars in the Philippines since ultimately, (I am assuming), they will exchange them into Pesos anyway? Unless as one comment pointed out that you can withdrawal US Dollars and then go to a Money Exchanger and save a few pesos on the exchange rate.

Of course I understand the reason for having a US Dollar account if a direct deposit is being made from Social Security or the VA and this is required by those agencies...but other than that...what are the advantages of having a US Dollar account in the Philippines?

Are there other reasons why anyone would want to have or need to have ready access to US Dollars while living full time in the Philippines? I think this is ultimately my real question...Do I or will I need to ever have US Dollars in my hand?

And thanks again for all the awesome feedback and comments from everyone...


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## Cebu Citizen (Dec 13, 2013)

cvgtpc1 said:


> Hi CC,
> I don't know and don't have PI peso or USD accts so can't really comment on it but if the USD acct is free or low overhead then why not? Then if you get in a pickle and realize you need one you have it. Then you have ALL bases covered just in case. In your field you know the value of preparation so why not?
> 
> I'm sure others can chime in on the fees and such.
> ...


Thanks cvgtpc1...this goes into my original mind set anyway of having my funds distributed into several different bank accounts in case any one of them might have financial issues or worse yet...fail and close.

Perhaps I should just open a US Dollar account when I return there this fall just to have another bank account to spread my funds out over a wider safety net.


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## HondaGuy (Aug 6, 2012)

Cebu Citizen said:


> Perhaps I should just open a US Dollar account when I return there this fall just to have another bank account to spread my funds out over a wider safety net.


Thats why I went ahead and opened a US Dollar account at my BDO branch to go along with my Savings and Checking Accounts. I just wanted to have one in case I needed it (which I havent as of yet).

As a data point, my BDO Peso Checking and Peso Savings accounts allow p50k to be withdrawn at a BDO ATM per day. P25k per transaction. So last month I was able to get p100k per day by doing 4x ATM withdrawals.


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## George6020 (Apr 18, 2014)

For a while, I was really careful and watchful about the current exchanges. I checked several money changers outside the banks because the banks offer the lowest(worst) rates. Now if the banks rate is near FOREX online, I just get the exchange at the bank.

Another possible reason to have a USD account, if you're planning a trip, its better to have US dollars when going to another country.


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## Nickleback99 (Aug 6, 2011)

One reason I can think of for USD acct There is for travel in Asia and better and easier to exchange dollars in other Asian countries, or as I think Jon noted before, to take advantage of good exchange rates for pesos when offered.


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## HondaGuy (Aug 6, 2012)

lastyle7 said:


> that is like 9k usd, can't understand why anyone needs this kind of money in
> Phils.


p100k is only around US$2300. I've had several instances of needing that kind of cash. Last month was because I was getting married and was paying for all the wedding stuff. Prior to that I purchased a car in Manila with cash. So while rare, there are instances where people will need larger sums of cash. This is just one way of getting your hands on some if you need it.


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## JShannon (Jan 28, 2014)

Does anyone know what amount of USD that a bank here with a USD account covers in case of failure? Is it the USD equivalent of P500k. I imagine it would be.


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## Asian Spirit (Mar 1, 2010)

JShannon said:


> Does anyone know what amount of USD that a bank here with a USD account covers in case of failure? Is it the USD equivalent of P500k. I imagine it would be.


All bank accounts, US dollar or otherwise are insured up to only P500,00 PESOS...


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## Cebu Citizen (Dec 13, 2013)

Nickleback99 said:


> One reason I can think of for USD acct There is for travel in Asia and better and easier to exchange dollars in other Asian countries, or as I think Jon noted before, to take advantage of good exchange rates for pesos when offered.


I had not thought about this before...this is a very good point Nickleback99 and George6020! I travel a lot for my business and I did not even think about what currency I would take with me when I travel to another country...Thailand or Cambodia or Hong Kong...

I am sure I can get a much better deal if I am carrying US Dollars when I go to these other countries rather than taking Philippine Peso's...

This is certainly a plus for having a US Dollar account. Thanks for bringing this to my attention...and that is what I like about this Forum...keep discussing something long enough and sooner or later someone else will have a totally different view of the topic that may shed some light on the subject and that is absolutely AWESOME...

I was beginning to think that I really don't need a Dollar account if I am living in the Philippines...and now I am thinking that I certainly do need one just for the travel reasons.


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## Manitoba (Jun 25, 2014)

I plan on getting accounts at home and in PI through the same international bank. 

That should reduce transfer costs and issues. I intend to use HSBC as it is the only one I can find with boith Canadian branches close to where I live and has PI branches as well


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## Gary D (Oct 28, 2013)

Manitoba said:


> I plan on getting accounts at home and in PI through the same international bank.
> 
> That should reduce transfer costs and issues. I intend to use HSBC as it is the only one I can find with boith Canadian branches close to where I live and has PI branches as well


HSBC in the Philippines is wholey Philippine owned and unless you have one of the premier account there are no real savings when transferring money. Also foriegn banks are limited to the number of branches allowed so HSBC is largely only in Manila.


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## Manitoba (Jun 25, 2014)

Gary D said:


> HSBC in the Philippines is wholey Philippine owned and unless you have one of the premier account there are no real savings when transferring money. Also foriegn banks are limited to the number of branches allowed so HSBC is largely only in Manila.


Account status is based on world wide holdings and as such I will not have any issues. I know the branches are in Manila( I think one in Cebu as well) but once i have a peso debit card I'm good to go.


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## Nickleback99 (Aug 6, 2011)

Good info fellas. My mortgage is HSBC so might look into that. Wells Fargo works well for me now with Cheap and fairly quick direct transfers to wife's linked BPI account; in past took about 3 business days to post for her access.


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## Cebu Citizen (Dec 13, 2013)

I also use Wells Fargo in the US and BPI in the Philippines...and although I do pay a transfer fee to send my US based funds to my bank in the Philippines, the fee is only $3 to transfer up to $5,000.00 per day and up to $12,500.00 per month...no questions asked. Wells Fargo and BPI are international business partners and transfers are quick and easy.

If I want to make a large purchase in the Philippines, beyond $12,500.00, I can simply shift my money over a few months...or I can also use a check or my credit card...


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## JShannon (Jan 28, 2014)

Manitoba said:


> Account status is based on world wide holdings and as such I will not have any issues. I know the branches are in Manila( I think one in Cebu as well) but once i have a peso debit card I'm good to go.


Hi Manitoba, What are the fees for banking with HSBC, sounds like something I would like to explore. Thanks


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## Manitoba (Jun 25, 2014)

JShannon said:


> Hi Manitoba, What are the fees for banking with HSBC, sounds like something I would like to explore. Thanks


On line self to self, within HSBC ,transfer using the HSBC Global View portal is free as long as you have the Premier account which requires $Cdn 100,000 on deposit or $7 with Advance level which requires $Cdn 20,000 on deposit. ( You can get the levels with a monthly fee if you do not have the required amount on deposit.). Not available with the lowest level account.

<Snip>

Note This is not available in all countries.


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## Gary D (Oct 28, 2013)

Manitoba said:


> On line self to self, within HSBC ,transfer using the HSBC Global View portal is free as long as you have the Premier account which requires $Cdn 100,000 on deposit or $7 with Advance level which requires $Cdn 20,000 on deposit. ( You can get the levels with a monthly fee if you do not have the required amount on deposit.). Not available with the lowest level account.
> 
> <Snip>
> 
> Note This is not available in all countries.


So it's free as long as you have $Cdn100,000 on deposit. We obviously have a differing take on free.


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## cvgtpc1 (Jul 28, 2012)

Gary D said:


> So it's free as long as you have $Cdn100,000 on deposit. We obviously have a differing take on free.


Taking advantage of free stuff is how you get $Cdn100,000 lol


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## Manitoba (Jun 25, 2014)

cvgtpc1 said:


> Taking advantage of free stuff is how you get $Cdn100,000 lol


The amount includes investment accounts. I'd imagine that most people retiring should be able to have that amount and be living off interest and gains on their investments.


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