50 Ways Banks Are Earning From You Through Bank Fees

By Nora With 9 comments:

Here are 50 ways banks are earning from you through bank fees, penalties or charges. 

This list is not to condemn banks. We need banks.

This is just to make you aware there are a lot of bank fees and what these fees are, so you can be smart about them.

These bank fees are not only charged in the Philippines -- most of these fees are also charged by banks in other countries.

Here are 50 Ways You're Making the Banks Richer with Bank Fees:


1. Below-maintaining-balance fee
    This is among the most common fees charged by banks, based on complaints online. One OFW wrote to this blog, saying she was charged 300 pesos for 15 months for a total of 4,500. She did not know that the minimum Monthly Average Daily Balance (MADB) or maintaining balance was increased.

2. Dormancy fee
    This is common among OFWs who are too busy with their work abroad they forget to remit to their accounts. A savings account becomes dormant if there's no deposit or withdrawal within 2 years. The time frame for a checking account is only one year.

3.  Interregional-branch over-the-counter deposit fee
     It's great to say that BPI, BPI Family, Union Bank, EastWest Bank, Sterling Bank of Asia and some big RCBC branches do not impose this fee.  This is one of the reasons why many online sellers use BPI accounts for collecting payments from their customers. Their customers will not have to pay deposit fees.

4.  Fee for exceeding maximum number of monthly withdrawals for special accounts
      This is usually imposed on higher-interest accounts.

5.  Lost passbook replacement fee

6.  Dollar withdrawal fee (withdrawing more than maximum amount)

7.  Dollar deposit fee (depositing more than maximum amount)

8.  Early account closure fee
    Fee for closing your account within one month from opening date

9.  Bank statement or certification fee  


10.  Another-bank's ATM withdrawal fee
     This is perhaps the most common fees charged by banks, and the most ignored by cardholders ("15 pesos lang naman...").

11.  Another-bank's ATM balance-inquiry fee

12.  Same-bank ATM withdrawal fee for special accounts

13.  Over-the-counter withdrawal fee for ATM accounts
       Banks say your ATM account is ATM-based, so you should use only the ATM for withdrawals.
       Your withdrawal should be free if the machine is out of order, or if you need more than the daily maximum ATM withdrawal amount.

14.  ATM card or debit card replacement fee

15.  Overseas ATM  withdrawal fee
       This usually costs US$3.50 per ATM withdrawal. Some ATMs abroad also charge their own fees.

16.  Overseas ATM balance inquiry fee
       This usually costs US$1.00.

17.  Overseas ATM withdrawal rejection fee
      These fees for overseas withdrawals are in addition to fees charged by some ATMs abroad for foreign-issued ATMs.

18.  Fee for exceeding maximum number of ATM withdrawals (for special debit cards)
       Usually, you are limited to 2 to 4 free ATM withdrawals a month.

19.  Funds transfer to another local bank

20.  Foreign-issued ATM card fee


21.  Cash card or prepaid card over-the-counter deposit fee

22.  Cash card inactivity fee
       Fee for not doing any transaction for more than 12 months

23.  Same-bank cash card ATM withdrawal fee

24.  Another-bank cash card ATM withdrawal fee

25.  Cash card replacement fee

26.  Visa or Mastercard prepaid card annual fee
        This is charged for Visa or Mastercard prepaid cards not linked to a savings account.


27.  Fee for inward remittance from overseas
        Nagbayad ka na sa remittance company sa abroad, may bayad pa sa bangko? Yes!
        In some cases, banks get their remittance fee through their foreign exchange conversion rate.

28.  Fee for outward remittance to overseas

29.  Correspondent bank fee for outward remittance to overseas
30.  Intermediary bank fee for inward remittance to another local bank

31.  Fee for outward funds transfer to another local bank

32.  Fee for incoming funds transfer from another local bank

33.  Fee for funds transfer using debit/credit memo over-the-counter


34.  Returned check fee
       This could range from 2,000 to 2,500 pesos

35.  Stop payment order (SPO) fee
        SPO application fee is usually 200 pesos per check.
        Plus 2,000 pesos for the process of stopping to fund the check
        (this is charged whether funds are sufficient or not)

36.  Fee for depositing a dollar check that was later returned
37.  Check retrieval fee

38.  Over-the-counter check encashment
       (Isn't this free? It has always been, but now some banks want you to deposit the check, not encash over the counter.)

39.  New checkbook fee


40.  Late payment fee
       If your due date is a holiday, Saturday or Sunday, pay before your due date.  
       If you're paying by check, pay several days before to allow for the 3-day to 7-day check clearing period.

41.  Over credit-limit fee
      You spent more than your available credit limit.
      (Why don't the banks decline the card usage? Well, you might sue them for embarrassment or for loss of business opportunity, so they might as well allow you to go over your limit, and just charge you a fee. Isn't that clever?)

42.  Annual fee

43.  Fee for making multiple payments per month
       Fee for making more than 2 or 3 payments to your credit card within a month
       Pinapagod mo raw kasi yong teller nila or yong system nila :)
       Bakit daw hindi ka minsanan lang magbayad? Huh!

44.  ATM cash advance service fee

45.  Over-the-counter cash advance fee

46.  Foreign transaction service fee

47.  Returned check fee (if you used an unfunded check to pay )

48.  Sales slip retrieval fee

49.  Credit card replacement fee

50.  Installment pretermination fee

. Foreign banks usually do not impose maintaining balance requirements for each account. What they use is Total Relationship Balance (TRB), the overall total of the balances of all your bank and investment accounts with them.

. The 50 bank fees above are not the only bank fees charged. There are other bank fees.

Related Posts:
What is Maintaining Balance or Monthly Average Daily Balance (MADB)?
Tips for New Checking Account Owners
Below-Maintaining-Balance Penalties for BDO Kabayan Accounts


Enroll in BPI Online Banking While Abroad

By Nora With 15 comments:

Yes, you can enroll in BPI online banking while abroad.

What account can I enroll in online banking?
.   any deposit account with BPI, BPI Family, BPI Europe or BPI Direct
.  BPI credit card

For Express Cash card, loan accounts and other BPI accounts, you can enroll them ONLY after your online banking enrollment has been approved and activated.

What are the steps in enrolling in BPI online banking while abroad?

1.  Go to bpiexpressonline.com

2.  Find "Personal Login" and " Enroll Now"

3.  Click "Enroll Now"

4.  Choose one of these below:

    Enroll an ATM-based BPI, BPI Family Savings, or BPI Direct deposit account
        For clients with ATM-based accounts

    Enroll a Passbook-based BPI or BPI Family Savings deposit account
        For clients with Passbook-based accounts

    Enroll a BPI Europe account
        For clients with BPI Europe accounts

    Enroll a BPI Credit Card account
        For clients with BPI Credit Card

5.  Click "Continue"

6.  You will see "Please let us know where you are residing"
      Choose "Outside the Philippines"

7.  Click "Continue"

8.  You will see Internet Banking Services Agreement.
      Click "I Agree"

9.  Complete Express Online Registration form

  • User ID
  • Password
  • First Name
  • Middle Name
  • Last Name
  • Mother's Complete Maiden Name
  • Email Address
  • Telephone Numbers
  • Account Numbers and Account Types

10.   Review what you have written.

11.  Print the completed form
       If you do not have a printer, select the whole application form, press Ctrl C, and then paste on a blank Microsoft Word page. Save in your USB.

12. Click "Submit"

Take note:
If after submitting, you see a print-ready version of your completed application form, then this is the one that you should print, sign and mail to BPI.

Again, if you do not have a printer, copy the print-ready form, save it in Word and then in USB, then have it printed at an Internet cafe.

13. Sign the printed form and mail to:

BPI Fulfillment Banking Department
9th Floor BPI Card Center
8753 Paseo de Roxas Makati City 1200

14.  After your request is processed, BPI will send you an email advice.

Which BPI accounts can not be enrolled in BPI Online Banking?

  • Peso Passbook accounts
  • Joint AND accounts 
  • In Trust for accounts (ITF accounts)
  • Corporate Accounts
  • Power 5-Bullet (Lump Sum Payment)
  • TF Plus Tax-Dree Repriceable
  • BPI TD Plus Tax-Free
  • Insta-Credit  
Third-Party Accounts that You can Enroll for Funds Transfer

You can enroll third-party accounts only if your own account is an ATM-based account.

These third-party accounts should be Individual Accounts

  • ATM Savings  
  • ATM Checking 
  • Passbook Savings  
  • Maxi  
  • Platinum Savings 
  • Platinum for Kids
  • BPI Direct Savings
  • BPI Direct Checking
  • Pangarap Savings


Biggest Bank Failures in the Philippines

By Nora With No comments:
Which were the biggest Philippine banks that failed?

Based on total assets just before they were closed down, the biggest Philippine bank that failed was Export and Industry Bank.

1.  Biggest -->> Export and Industry Bank, a commercial bank

Export and Industry Bank Inc., also known as Exportbank, had 28.75 billion pesos in total assets as of June 2011, almost a year before it was closed on April 26, 2012 by the BSP.  The June 2011 statement was its last published financial statement on the BSP website. It had 50,052 depositors and 50 branches.

Of the 38 Philippines commercial/universal banks listed and ranked by the BSP as of March 2011 on its website, Export and Industry Bank was No. 29 in total assets, with 30.028 billion in total assets as of March 2011.

The day before it was closed down by the BSP, Exportbank wrote a letter to the BSP, saying that it was surrendering its banking license and that it was declaring a bank holiday effective April 27, 2012.

Exportbank acquired the failed Urban Bank in 2001. Urban Bank was  placed by the BSP under receivership on April 26, 2000. Their merger became effective on February 1, 2002.

2.  2nd Biggest -->> Urban Bank, a commercial bank

The next biggest Philippine bank that failed was Urban Bank Inc., closed down by the BSP on April 26, 2000, the day after Urban Bank unilaterally declared a bank holiday on April 25, 2000. It had 15 billion in total assets before its collapse. After it was closed down, it was acquired by Export and Industry Bank in 2001, with the merger becoming effective on February 1, 2002.

3.  3rd Biggest -->> Banco Filipino Savings Mortgage Bank, a thrift bank

When Banco Filipino Mortgage Bank was closed down on January 25, 1985, it had 4.95 billion in total assets, based on the Tiaoqui report dated January 23, 1985. At that time, it was the most popular and biggest thrift bank in the country.

Banco Filipino filed several cases against the then Central Bank of the Philippines, challenging its actions regarding the operations of Banco Filipino.

Banco Filipino was allowed to operate again in June 1992. On March 17, 2011, it was again placed under receivership, as it “was no longer able to settle its obligations.” It had 11.77 billion in total assets and 23.03 billion in liabilities.

4.  4th Biggest -->> Orient Commercial Banking Corp., a commercial bank

Orient Commercial Banking Corp. was closed down on October 14, 1998.
In December 1997, Orient Bank had total assets of 7.8 billion and 52 branches, according to the study "Philippine Corporate Governance: Issues and Reforms," by Erlinda S. Echanis.

Orient Commercial Banking Corp. was formerly Bangko Silangan Development Bank.

5.  5th Biggest -->>Pacific Banking Corp., a commercial bank

Pacific Banking Corp. was put into receivership on July 5, 1985 and was liquidated on November 22 1985, based on the PDIC list of bank failures. It was noted as a major commercial bank in a New York Times report published July 8, 1985.


Banco Filipino Savings and Mortgage Bank v. The Monetary Board, Central Bank of the Philippines. G.R. No. 70054. (1991, December 11). Retrieved from the Arellano Law Foundation's The LawPhil Project: http://www.lawphil.net/judjuris/juri1991/dec1991/gr_70054_1991.html

CA Clears BSP Governor, Other BSP Offices Re Urban Bank Case. (2004, June 8). Retrieved from http://www.bsp.gov.ph/publications/media.asp?id=328

Closure of Export and Industry Bank. (2012, April 27). Retrieved from

The Closure of Urban Bank. (2003, August 28). Retrieved from http://www.bsp.gov.ph/publications/media.asp?id=600
UBI was placed under receivership the day after it declared a bank holiday.

Keeping Faith in the Face of Adversity. (2003, August 28). Retrieved from http://www.bsp.gov.ph/publications/speeches.asp?id=84&yr=2003

Philippine Bank Closure. (1985, July 8). The New York Times. Retrieved from http://www.bsp.gov.ph/publications/media.asp?id=2861


18 Top Philippine Banks, Based on Assets June 2017

By Nora With No comments:
Here are the 18 Top Banks in the Philippines based on Total Assets as of June 2017:

 Top Commercial/Universal Banks in the Philippines

The Big Four remains BDO, Metrobank, Landbank and BPI.
Security Bank has overtaken PNB in the race to No. 5.




TOP 18
1 BDO2,325.1231
2 METROBANK1,620.6562
3 LANDBANK1,483.5313
4 BPI1,432.2684
5 SECURITY BANK  774.3886
6 PNB  773.6465
7 CHINABANK  572.3448
8 DBP  533.3707
9 UNION BANK  486.93810
10 RCBC  427.4509
11 CITIBANK  314.62911
12 UCBP  310.73212
13 EASTWEST  292.96313
14 AUB    185.93615
15 HSBC   171.70814
16 PHILTRUST   155.51516
17 BCOMMERCE   131.30917
18 MAYBANK   101.73219
No. 19 to
No. 34
19 PBCOM    89.15320
20 ROBINSONS BANK   85.28921
21 BDO PRIVATE   72.06726
22 BANK of TOKYO   67.54018
23 MIZUHO   67.50925
24 DEUTSCHE BANK   51.67024
25 VETERANS    49.46023
26 STANDARD CHARTERED      49.11622
27 ANZ   46.76428
28 JP MORGAN CHASE   42.44427
29 CTBC PHILS   38.87029
30 SUMITOMO MITSUI   25.41931
31 ING BANK   19.89730
32 BANK OF AMERICA   19.42732
33 BANK OF CHINA   14.88034
34 MEGA ICB   14.11233
No. 35 to
No. 42
35 BANGKOK BANK   8.37235
36 KEB HANA BANK   8.17336
37 CATHAY UNITED    4.48540
38 INDUSTRIAL BANK of KOREA    3.71839
39 UNITED OVERSEAS    3.63337
40 SHINHAN BANK    2.884 38
42 AL-AMANAH   0.69841

. KEB Hana Bank was formerly Korea Exchange Bank (KEB). KEB changed its name to KEB Hana Bank in July 2016 to reflect its acquisition by Hana Financial Group in 2012.
. Taiwanese bank First Commercial Bank Ltd. opened its Manila Branch in January 2017

Nine foreign banks have established operations in the Philippines since the passage of RA 10641 in July 2014. The law allowed the entry of foreign banks that could account for up to 40% of the banking industry's assets.
1. Sumitomo Mitsui of Japan
2. Shinhan Bank of South Korea
3. Cathay United Bank of Taiwan
4. Industrial Bank of Korea
5. Yuanta Bank of Taiwan
6. United Overseas Bank Ltd. of Singapore
7. Woori Bank of Korea
8. Hua Nan Commercial Bank Ltd. of Taiwan
9. First Commercial Bank Ltd.

There are now four Korean banks in the Philippines:
1. KEB Hana Bank
2. Woori Bank
3. Shinhan Bank
4. Industrial Bank of Korea

Previous Ranking: Top Banks, by Assets as of December 2015
US Dollar Accounts with Low Maintaining Balances 
Biggest Bank Failures in the Philippines


Dormancy Fee Reduced to 30 Pesos per Month after 5 Years of Inactivity

By Nora With 3 comments:

The dormancy fee rules for bank savings and checking accounts have changed effective April 2017. 

➧ The dormancy fee shall not be higher than 30 pesos.
Most likely, 30 pesos na ang dormancy fee. Bakit pa sila sisingil ng mas mababa, eh 300 pesos nga yong dati nilang singil.

 ➧ The dormancy fee shall be charged only after 5 years of no deposit or no withdrawal
  and if the account balance is below the required maintaining balance.

     If the account balance is equal to or above the required maintaining balance, there shall be no dormancy fee charged.

➧ The bank is required to notify the account owner two times:
    At least 60 days prior to start of dormancy
    At least 60 days prior to the start of the application of the 30-peso-per-month penalty
    Notification shall be any one of these:
      postal mail
      text message
      phone call
      courier-delivered notice

➧  Previous dormancy time frames are still the same:
A savings account becomes dormant after 24 months of no deposit or no withdrawal.
A checking account becomes dormant after 12 months of no deposit or no withdrawal.

➧ When an account becomes dormant, the account is put on hold. To reactivate the account, the account owner needs to go to his branch with his valid IDs and reactivate the account.

➧ An account which has been dormant for 10 years will be reported by the bank to the Treasury of the Philippines. The money will be sent to the Treasury. This is called the process of escheat, and it is in accordance with the Unclaimed Balances law.
   Notification requirement: The bank shall notify the account owner at least 60 days prior to the 10th year of dormancy.

  Some banks impose two penalties at the same time:
     Penalty for below-maintaining-balance
     Dormancy fee

Source: BSP Circular No. 928 Series of 2016 Amendments to the Regulations Governing Fees on Retail Bank Products/Services and Dormant Deposit Accounts