Rethinking Filipinos' savings behaviour at the height of COVID-19

Developments surrounding the coronavirus pandemic (COVID-19) have become the theme of 2020. While people try to cope with this 'new normal', they are also confronted by the day to day realities and concerns about their personal financial stability.

In a recent published consumer expectations survey by the Bangko Sentral ng Pilipinas (BSP) early this year, more Filipinos are now setting aside funds for unforeseen expenses, with 73.9% of respondents saying they keep their money in banks.

However, with yet another extension of the enhanced community quarantine, savings kept by a significant portion of the population is expected to dwindle further.  COVID-19 is already changing the way Filipinos save, so how do you make your finances cope?

Separate your bills account from your savings account.

You probably have a bank account or an e-wallet which serves as your primary source for bills payments or for transferring money to loved ones, especially at this time.  If you consider this same account as your savings where you tend to deduct money regularly, then it's best to rethink how you manage your funds.

Keep your actual savings at a different bank so it will be easier to track. The emergence of digital banks like ING Philippines makes opening a savings account at the comfort of your home simple, easy and convenient. All you have to do is download the mobile app, fill in the details requested, upload an ID and you're good to go in just 10 minutes!

Re-evaluate your bank’s interest rate on savings.

Most retail banks in the Philippines have interest rates on savings accounts that typically range from just 0.10% to 0.25% per annum (p.a.). Even if you are a regular saver, this will not get your money far. The main thing to remember when it comes to savings' interest rates is that the higher, the better, and the faster your money will grow for a future spend. As an example, all ING Savings Account clients will continue to enjoy the 4% interest rate p.a. for balances of up to P10 million. This is almost 16 times higher than the interest rates of most retail banks. Plus, no minimum deposit and no maintaining balance required to earn interest!

Skip the unnecessary charges for digital transactions.

Hidden fees and other charges hinder the growth of your savings and often, these are deducted from your current balance. Currently, most interbank transfer fees are waived until the duration of the ECQ, so that's one thing to be thankful about. With ING, transferring money to other banks via PESONet has always been free of charge and it’s intended to stay that way. Another convenient option is to deposit your check via the ING mobile app.

As the world continues to adjust to the situation, Filipinos are looking for a trusted banking partner in securing their savings or growing their emergency funds quickly. No better timing than now to make your money truly work for your future.

Learn more about ING Philippines on https://www.facebook.com/INGPhilippines/ or by visiting https://ing.com.ph/home.

Download the ING Philippines - Digital Bank app for iOS or Android.

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This is a paid press release from ING Philippines