High interest savings accounts in the Philippines

To compare savings accounts, look at three things: the rate after the 20% final tax, the conditions attached to the top rate, and whether the bank is covered by PDIC deposit insurance. Then keep in savings only the money you may need quickly. Money you won’t touch for months can go into a time deposit or other options that may pay more for locking it away.

How interest is quoted and paid

• A rate a year. Banks quote a yearly rate, such as 4% a year. A month’s interest is roughly a twelfth of that.
• On your daily balance. Most savings accounts work out interest on each day’s balance and add it up. Money that stays in the account longer earns more.
• Credited monthly, quarterly or daily. Interest added more often earns interest on itself sooner.
• Before tax. The quoted rate is usually the gross rate. The bank withholds a 20% final tax on the interest before it reaches you, so a 4% gross rate gives you about 3.2%.

The 20% applies to interest that Filipino citizens and resident individuals earn on any bank deposit, of any type or term, from 1 July 2025 (NIRC Sec. 24(B)(1) as amended by RA 12214, and BIR Revenue Regulations 21-2025, Sec. 3). It is a final tax: you don’t declare the interest again on an income tax return.

To see what a fixed amount earns after tax over a set term, try our time deposit calculator.

Conditions to check

• Maintaining balance. Some accounts pay nothing, or charge a fee, if you fall below a minimum balance.
• A cap on the top rate. A high rate may apply only up to a certain balance, with a lower rate on the rest.
• Promo periods. A promo rate may last a few months, then drop to the regular rate. Check the end date.
• Conditions to earn it. Some top rates need a monthly deposit, a number of card payments, or no withdrawals that month.
• Withdrawal limits and fees, above all for online-only accounts.

PDIC deposit insurance

The Philippine Deposit Insurance Corporation (PDIC) insures deposits in its member banks up to PHP 1,000,000 per depositor, per bank, from 15 March 2025. All your accounts at the same bank, in your name, are added together for that limit. Money spread across different banks is insured separately at each one. Foreign currency deposits are covered too, and paid in the same currency (PDIC FAQ).

PDIC does not insure investment products such as bonds and securities, trust accounts (UITFs are one) and similar products, even when a bank sells them (RA 9576 Sec. 4(f)). If you are not sure whether a bank is covered, ask it, or check on pdic.gov.ph.

Rates

We don’t publish a table of savings rates. They change often, and a rate that was right last month can mislead you today. Each bank posts its current rates on its own website and in its branches. When you compare two accounts, work out what each pays after tax on the balance you will really keep, under its conditions.

Digital banks explains online-only banks and how PDIC cover applies to them.

For a fixed rate over a fixed term, see time deposits.