4.13.2012

What Is Maintaining Balance in Bank Accounts?

Nora Tamba     4/13/2012     63

Updated Sep 18, 2014

What Is Maintaining Balance in Bank Accounts?

Why do we get a penalty of 300 pesos or more every month for NOT maintaining the Minimum Monthly Average Daily Balance for 2 consecutive months?

What is this Minimum Monthly Average Daily Balance (MADB)? or Maintaining Balance?

Maintaining Balance is the Minimum Average Daily Balance we should have in our savings account or checking account every month.

Why is there a Maintaining Balance requirement?

The banks say they spend money to handle our accounts, so they must make some profit from our accounts, and therefore, according to them, we should maintain a certain minimum amount of money in our accounts.

The banks check our balances, not everyday, but every end of the month. They compute the average balance for 30 days or 31 days of the month -- that's why it's called Monthly Average Daily Balance (MADB).

They consider the end-of-day balance. If our balance in the morning is 10,000 pesos, and at the end of the day, our balance is 15,000 pesos, they consider 15,000 pesos.

If the required Maintaining Balance is 2,000 pesos, do we need to have 2,000 pesos in our account everyday?

Yes, so that we don't have to think about maintaining balances.  :)

But we can have less than 2,000 pesos in our accounts some days, as long as we deposit much more than 2,000 pesos in other days, so that when the MADB is computed at the end of the month, the MADB is still 2,000 pesos or more.

Example:
Your savings account has a balance of 2,000 pesos.
The required MADB  is 2,000 pesos.
The penalty for falling below MADB for 2 consecutive months is 300 pesos.
You withdrew 500 pesos, resulting in a balance of 1,500 pesos.
Will your balance be reduced by the 300-peso penalty?

Can be Yes, can be No.

If your balance remains 1,500 pesos over 2 consecutive months, your balance will be reduced by the 300-peso penalty at the end of the 2nd month.

But if you deposited high amounts of money in other days, so that your MADB at the end of the month is 2,000 pesos or more, then your account will not be penalized.

Or even if you fell below MADB for the first month, but you reached your required MADB on the second month, you will not get the penalty.

How do banks Compute MADB?

They add the end-of-day balances for all the days of the month,
and then divide the TOTAL by the number of days of the month
(divided by 30 or 31 or 28 or 29).

Example: April has 30 days:
For the first 5 days of the month, your balance everyday was 2k.
then for the next 20 days, your balance everyday was 1k
and for the last 5 days, your balance everyday was 3k

5 days x 2k = 10k
20 days x 1k = 20k
5 days x 3k = 15k
10k plus 20k plus 15k = 45k

45k divided by 30 days = 1,500 pesos

Your MADB is 1,500 pesos

Obviously, that's below the 2k minimum MADB.
If for the next month, your MADB is still below 2k, then your account balance will be reduced by 300 pesos.

Another example: March has 31 days
First 5 days, balance everyday is 2k = 10k
Next 10 days, balance everyday is 1k  = 15k
Next 16 days, balance everyday is 3k = 48k
10k plus 15k plus 48k =  73k
73k divided by 31 days = 2,354.84

Your MADB is 2,354.84.

That's above the 2k required MADB. That means you have maintained your account, so there will be NO penalty.
And that means you are on your way to saving a LOT of MONEY if you continue to deposit and NOT withdraw.

Peso Savings Accounts for OFWs, Usually Zero or Low Maintaining Balance

US Dollar Accounts with Low Maintaining Balances

What is Maintaining Balance in Bank Accounts?
Minimum Average Daily Balance (MADB)

63 comments:

Anonymous said...

i have a newly opened bpi atm direct account for 15 days now i think, the maintaining balance is 3k, im planning to withraw 1k tomorrow and deposit more than 1k by 2-3 days. will i incure any penalty? thanks.

Nors said...

Hi Anonymous, not yet. You'll incur a penalty at the end of the 2nd consecutive month you fall below the maintaining balance requirement. 3k is the maintaining balance? And you had 3k in your account for the past 15 days? So that means you're ok for Feb since your account is newly opened. Yes, maintain more than 3k after you withdraw 1k so that on March 31, the average daily balance would be 3k or higher. You try adding the daily balances and then divide by the no. of days.

Anonymous said...

thanks for that Nors very informative. i have another question, do the counting of days start regulary on a monthly basis or does it start on the day my account was activated?

Nors said...

Hi Anonymous, bank systems check maintaining balances immediately after every 30th or 31st. They check daily balances from the first day of the month to the last day of the month. The penalty is imposed immediately after the 2nd consecutive month that you fall below the maintaining balance requirement.

Anonymous said...

hi. I opened my passbook account noong Jan. 18, 2013. Currently (March 11, 2013) ang balance ko ay P10k. ang maintaining balance requirement ay 1k. ma-pepenaltyhan ba ako kasi hindi ako nakadeposit since last Feb. 18? or ano ang suggested na amount ko na i.dedeposit para di ako ma-penaltyhan? thanks.

Nors said...

No, you will have no penalty because you have 10k in your account, far above the maintaining balance requirement. You are not penalized if you don't deposit in a month or in 2 months or more, as long as your lack of deposit does not exceed 2 years. An account becomes dormant if you do not deposit or withdraw within 2 years.

Anonymous said...

salamat po sa mga information

Anonymous said...

hello po may savings account po ako sa BDO ar may maintaining balance na 2000 what if na withraw ko ito lahat tapos hindi na po ako nakapag deposit for a months ano po mangyayari mag closed na po ba ito?

Nors said...

About BDO maintaining balance: Kapag 0.00 na ang balance, automatic mag-close na. Kapag meron pang natirang cents or few pesos, mag-close siya at the end of the 2nd consecutive month na wala kang naideposit or below required maintaining balance. If merong konting balance at 1 month lang below-required-balance, at sa 2nd month ay 2k or above na ang average daily balance, walang penalty, at active account pa siya.

Anonymous said...

is it legal for banks to have 2 different and separate MADBs for their active and dormant accounts ? for example, their MADB for active accounts is pegged at 5,000.00 while their dormant accounts' MADB is pegged at 10,000.00 ?

Nors said...

About MADBs: Sorry I'm not a lawyer, so you should not rely on my response. But this is my first time to hear about different MADBs for dormant and active. I think you can question them if they insist on applying that rule to you, when they did not disclose that rule to all clients -- that rule should have been disclosed in their passbook, or brochures or any written communication to new clients...
The BSP ruling on MADBs emphasizes the need for disclosure of rules to all clients before implementing such rules...I think there's even a part that says that the client should be notified via a letter to the client's last known address if the account is nearing dormancy or has started to be dormant....

Anonymous said...

Hi, I would like to ask for the service charge/penalty of MADB for deposit account if the balance is below maintain balance for one(1) year. Thank you.

Nora said...

About below-maintaining-balance penalty: That would be 11 months x 300 pesos = 3,300 pesos
So it's better to close an account if one cannot maintain the monthly average daily balance. There are accounts that have low or zero maintaining balance requirements

Anonymous said...

Thank You for the reply. I thought it will automatically closed when it becomes zero balance. I'm just confused from these fees"PHP300 – monthly service charge for falling below the required average daily balance (ADB) for 2 consecutive months". Am I misunderstanding that it will charge me P300 for 2 consecutive months if below ADB or it will charge P300/month for falling below maintain balance. OMG! how can I pay and closed it, I should pay the charges first before closing the account. OMG! I'm unemployed for almost a year. Is there any ways to stop the continuous charge/penalty. Thanks in advanced. You're really helpful. Ms. Nora

Nora said...

No, no, no, don't pay the penalties if the balance is already zero for too long! No! Forget this account. The bank will not go after you. When you get employed again, or receive some money later on, open another account in another bank or another branch.
I answered your question that way because of how you asked your question. I thought you have a balance of 3k or 5k or more...because you asked for 1 year! For example, your account fell below maintaining-balance for 2 consecutive months, 300 will be deducted at the end of the 2nd month. If it's still below maintaining balance the 3rd month and there's still a balance, another 300 will be deducted. If after this 2nd deduction, your account becomes negative or zero, your account will automatically close. If you left your account with zero balance for many months already, forget this account.

Anonymous said...

Thank You GOD & to YOU. So you're telling me to just ignore any contacts & letters from staff/personnel of the bank. I'm feel worried about being arrested for these situation that's why I'm browsing some issues like this thru internet. By the way, Is it possible that they will file complaints regards to it and arrest me. I also ask my friend working in a bank for this situation. Anyways, hope will not be arrested for this and that I'm worried about that's why I'm too eager to find what to do and what will happen... I'm sorry for the inconvenience Ma'am Nora, you're a life saver for sharing and answering my questions. THANK YOU SO MUCH AND GOD BLESS....

Nora said...

God bless you too.
No, the bank will not pursue you, will not file a charge against you, and will not have you arrested. What for? What's the charge? What's your crime? None. It's not a crime to open a bank account and leave it with a balance below the minimum balance requirement or leave it with a zero balance or negative balance. Sa totoo lang, maraming-marami ang nako-close na account due to zero balance or negative balance. Meron na rin akong hinayaang na-close na bank accounts for different reasons, and I didn't close them formally.
Meron din kasing cost ang mag-maintain ng account na wala namang laman, so these accounts are automatically closed. Sometimes, some banks write just to inform na iko-close na nila ang account, pero hanggang doon lang yon, at bihira ito, additional cost pa nila.
So, feel relaxed na, and keep praying for another job, a better job.

Anonymous said...

I'm almost felt relaxation but last question Ma'am, they've said about "Account will be dormant effective november 2013 and service charge is continuous" if I'm going to calculate this in the next another 2yrs from additional past 2 yrs total of 4yrs for example, the charge/penalty would be almost 15k pesos. My last question here is does Automatically closing of bank accounts is applied or implemented to all Banks in the Philippines. I'm not saying I'll do it to my succeeding bank accounts. I'm sorry for all these questions. Thank you & God Bless. I'm praying on having another better job. Your help is very much appreciated.

Nora said...

I got really curious about your case -- that they sent you that letter -- so I searched the 2 Pinoy forums that I sometimes visit, and I found one similar case to yours. It was with Metrobank. Is yours also Metrobank?
This one closed his account, and then after 2 years he got a letter from Metrobank telling him to fix his dormant account or else the charges continue accumulating. He called the hotline, and he was instructed to visit the Metro Mla branch in person, even if he was far away in the province. When he arrived at the branch, the teller told him to disregard the letter! Unbelievable! The thread was in 2009 though.
I went on through the other forum threads, and the bankers there generally said the same thing -- that accounts automatically close after they zero out, and that there's no law broken if these accounts are not closed in person.
I have an inkling that Metrobank's automatic account closure or automatic dormancy and below-maintaining notification system has a bug or defect, so it sends out these letters even to those with negative balances or to those whose accounts should have been closed months or years before. Banks are required by the BSP to send out notifications for accounts that are about to get dormant.
If you like to see these comments, just type on google search tab this: close account site:pinoyexchange.com and you can see several search results
This can be a good topic for an article when I have time... :)

Anonymous said...

Yes its Metrobank, I'm browsing also other information with regards with these situation. I also look for the BSP law if the bank can file complaints against me if I will not visit the bank and closed my account. But I notice something written on the letter like "Visit us and reactivate your account." so the first thing comes in my mind is that they just wanted me to come then pay for the penalties for reactivation of the account but for almost 2yrs I didn't use the ATM card and I expect that It was automatically closed due to I left it below 100 pesos so the deduction will occur until it becomes zero balance. I also ask my friend working in a different bank and says that it will close automatically even if I left a positive balance it will deduct until it turns negative and zero balance. Thank you for your time, I appreciate it Mam. God Bless Always.

Anonymous said...

Question :

What if po I am planning to withdraw on the day of 30 and 31 considered po ba ito na may penalty ?

Nora said...

About withdrawing on the 30th and 31st: You can withdraw anytime, as long as you can maintain your monthly average daily balance (MADB) requirement for 2 consecutive months. Kung hindi mo man ma-maintain ang MADB this Dec 2013, make sure na ma-maintain mo this Jan 2014 para hindi magkasunod na below-MADB. Merong penalty kapag magkasunod na buwan na below MADB. Ang penalty ay nababawas sa end of the 2nd consecutive month na below MADB at every month na up to the time na naibalik mo sa above MADB

Anonymous said...

How can this happen to a payroll account na twice a month may pumapasok na pera? (say, minimum of 5k every 15th and 30th of the month. Ibig sabihin kahit i-withdraw mo ang buong 5k sa 15th walang penalty kasi may e-expect ka naman on the 30th which is i am sure that the maintaining balance is below 5k, I have bpi savings account.

Nora Tamba said...

About maintaining balance requirements for payroll accounts:
Usually, payroll accounts are free of the maintaining balance requirement. It is the company's corporate account (that feeds the payroll accounts) which are required to maintain a certain MADB.

Nora Tamba said...

September 11, 2014 at 6:22 AM
About BPI account with zero balance for 2 years:
Hi, may i ask regarding my bpi savings atm. it's been a long time that it's zero balance; i think almost 2yrs. If I deposit more than the maintaining balance, would they still charge me penalty or service charge? Say i'll deposit 5k, would i be penalized considering it's been 2 years that i had zero balance? Thanks in advance!

Is this a regular account? And not a BPI Easy Saver?

Usually when a regular bank account balance becomes zero, 0.00, the account is automatically closed, or put on hold until the end of the month, and then closed.

Try using your atm card at a BPI atm; the screen will most likely show "Account Closed" or "Account Not Existing" or "Account Not Valid".

You can open a new account, and start saving again.

Anonymous said...

Hi Anonymous. what would be your suggestion, account with maintaining balance or account with no maintaining balance? what are they differences except the maintaining balance? for example. "Security, Services, etc..... thanks in advanced.! :)

Nora Tamba said...

Kevin Quilala October 25, 2014
Hi, I don't have an atm card yet but I'll apply maybe next week. For instance, the maintaining balance is 3k, so every time I withdraw, I leave 3k in the account, I won't get a penalty? And what about if I don't use the card for a long time, like for 4 months, but it has a balance of 3k, does it get a penalty?

Hi Kevin, yes, you're right, you won't have a penalty as long as you always leave 3k in the account. That's a better way to do it. No, you don't get a penalty even if you don't use your card in 4 months or more (up to 23 months), as long as you have 3k or more in your account.

There's another penalty, and it's called dormant account penalty. This is when you don't have any withdrawal or deposit within a period of 2 years or 24 months.

Nora Tamba said...

About differences between account with or without maintaining balance requirement:
About security: Savings accounts are insured by the PDIC. Cash cards (these have no maintaining balance requirements) are not insured because they're not considered deposit accounts.
About services: Atm withdrawals for savings accounts are free at the atm machines of your bank. Some accounts or cash cards without maintaining balance requirements charge atm fees.
About interest rate and balance to earn interest: Usually the same.

Nora Tamba said...

QUESTION:
Hi, about maintaining balance, is it being charged so it will complete the maintaining balance? 5,000 is the maintaining balance. When I computed, 4,500 has been charged in all. If the charge reaches 5,000, will the charging stop? Thanks.
ANSWER:
Hi, I'm puzzled that you allowed the bank to charge you so many times that your total charges reached 4,500! Why did you not just withdraw your money and close your account?
No, the charge will not stop. You will be charged every month as long as money is being deposited but the maintaining balance requirement is not complied with.
If you need a bank account for remittance, you can open a BDO Kabayan account (it has no maintaining balance requirement as long as your account receives at least 1 foreign remittance every 12 months).
Or you can open a BPI Easy Saver account -- this also has no maintaining balance requirement, and in exchange, you're charged 5 pesos for every atm withdrawal or balance inquiry.
There's also a BDO cash card (no maintaining balance requirement). Get the one that can contain up to 25k pesos.

Anonymous said...

Good day po. This page has been very helpful. Tanong ko lang po, dahil ilang months na rin po ang BDO nag service charge sa account ko.. Kung formally ko pong iko-close yung account ko by going to the branch personally dahil hindi ko na po naaabot yung MADB, pababayarin pa po ba nila ko ng 300pesos? I'm planning po kase na i-withdraw muna lahat nung balance bago pumunta sa branch at ipa-close yung account, saka na lang mag-open ulit ng panibago sa another branch kapag sufficient na po yung pera ko..

Nora Tamba said...

About 300-peso penalty:
QUESTION from Anonymous:
Good day. This page has been very helpful. BDO has been deducting service charges from my account for some months. If I formally close my account by going to the branch personally as I have not reached the MADB, will they charge me 300 pesos? I'm planning to withdraw all my balance before going to the branch to close my account, and then open a new account at another branch when I have sufficient money.
ANSWER:
It's now the 29th. Yes, you better withdraw all your balance today before another 300 pesos is deducted from your account at the end of day on Nov 30. That's tomorrow. If there's 30 to 90 pesos left (since we cannot withdraw less-than-100 peso amounts via atm), if you like, you can use your atm to buy something worth 30 to 90 pesos from Save More and use your BDO atm to pay it. Assuming you have withdrawn your balance, when the 300-peso fee is charged at end of day on Nov 30, your balance becomes negative, and your account will automatically close.

Anonymous said...

Question lang po about Bancnet, any member bank po ba like Allied Bank or EastWest, basta nakalagay sa atm yung logo ng bancnet, free ng charge pag nag-withdraw dun?

bam de dios said...

QUESTION..I rent a vault in banco de oro the fee is 700..a year. i have an account of 7500 ..every year they deduct the fee to my account.that ok.i dont have the time to go to the bank.my last visit 2011..now 2014 i update my account . i have 5400 left in my account..but in my suprise they charge me 300 starting june 2014..6x..total 1800.so my acccount dwendel to 3600..is that right..i have 5400..the maintaing balance in 5000.do they have the right to service charge me..?PS THEY DO SENT NOTICE.THEY JUST DO IT.---BAMBOO

Nora Tamba said...

Hi bam de dios, sad to say that BDO increased the maintaining balance for passbook accounts to 10k pesos since May 1, 2014. It was announced on their website for many months before May 1. It's frustrating that BDO did not notify their clients individually through email or mail, based on similar complaints that were sent to our blogs. You'll be deducted with another 300 pesos this Dec 31, making your total penalty add up to 2,100 pesos. You should deposit today or tomorrow at least 6,700 pesos, so your average daily balance starting Jan 2015 will be 10k or more, and so your penalty will stop in Jan 2015.
I would have advised you to close your account today, but you said you have a vault with them, and I don't know the details of your vault agreement.

Nora Tamba said...

About ATM withdrawal fees at Bancnet atms: ATM withdrawals are free only if you're withdrawing from the machine owned by your bank.
EON atm cards are charged for ATM withdrawals even if you use UnionBank machines.
If you withdraw from the machine owned by another bank, even if Bancnet member, you'll be charged.

Anonymous said...

Hi Mam Nora, hope everything's fine with you, I would like to ask regarding my BDO account(passbook), I opened it last April 2013, that time the minimum balance is 5,000,I also send small amount to add in my saving,then little did I know, my account has already deduction for almost 1500, its because that the maintaining balance last 2014 increase to 10k, so what I did I send 1,100 in pesos in order to reach 10k as the current minimum balance, that was last August 2014, now My question is, do I still have penalties? how can I check if my bank account if still active? because now im planning to send money on my account. Please advise
Your response is highly appreciated.

Nora Tamba said...

QUESTION about frequency of deposit, December 31, 2014
Is it required for a depositor to deposit monthly? For example, the balance of 2,000 is retained and it's not withdrawn, and the account owner deposits only in months when they have money to deposit. There's no withdrawal. atm savings account. thanks. God bless.
ANSWER:
Yes, as long as you maintain your required minimum monthly average daily balance (MADB), you can miss depositing for several months. If your atm savings account is with BDO, the MADB is 2k. Do not touch your 2k; leave it in your account, and then deposit only when you have money to deposit. But don't let your account sleep for 2 years. An account without deposit or withdrawal within 2 years will be considered dormant and will be put on hold. Check also from time to time if your bank increased the MADB for your account type.

Nora Tamba said...

Hi Anonymous, about BDO passbook account, Jan 17
If you have your atm card with you and it has a Mastercard logo, you can make a balance inquiry at a machine there with Mastercard logo. You can also make your inquiry here: BDO Contact Page. Ask if your account is still active.
About penalty: You said you increased your balance to 10k. I wish you have increased it to 10,300 or more to cover another 300-peso penalty. This is because if you increased your balance to 10k at the middle of the month, then your average daily balance for that month is still less than 10k. You can also email BDO at callcenter@bdo.com.ph

Anonymous said...

Hi. Our kasambahay opened a savings account at eastwest last April 2013 at Php 8700. . She withdrew last Sept 2013 Php 5K kaya naging 3,700 na lang balance nya. Its below minimum so she deposited last Nov 22 2013, 1,300 to make it Php 5,000 again. She didn't incur any charges nung Sept and Oct kaya Php 1,300 lang deposit nya. Dec 2, bank deduct Php 500 for monthly maintenance for Nov 2013.. She did not inquire after Nov 22 since she knows that her money is back to minimum balance. So from Nov 2013 onwards, deduct ng deduct bank hanggang maubos money niya..Is the charges of the bank correct? I inquired sa bank on her behalf and the girl said she cant explain to me since system generated ang deduction ng below minimum. Hope you can help

Nora Tamba said...

About 5k bank deposit wiped out by penalties:

I felt so sad reading this. And she's not alone with this experience. Many have commented on our blogs about deposits disappearing due to penalties.
I summarized her account as follows:

Sep 2013 3700 balance maintained
Oct 2013 3700 balance not maintained
Nov 1 to 21, 2013 3700 balance not maintained
Nov 22 2013 5000 no charge yet
Dec 2 start of 500-peso charge (for Nov)

The policy of most banks is that the penalty is charged starting from the 2nd consecutive month that the account falls below the maintaining balance.
Her account fell below the balance in Oct and Nov, so the penalty was charged for Nov (the second month her account fell below the required balance).
And the penalty continued to be charged starting Nov because the balance was not restored to 5k.
She might question why she was not able to maintain her account in November when she deposited 1,300 to bring the balance to 5k. This is because she deposited only on the 22nd. She should have deposited on Nov 1.
It's just unfortunate that she did not check her account early in 2014. And it's so sad that her banking experience is bad. All she wanted to do is save, and the banking world failed her.
I think I'll make a post again on this matter.

Anonymous said...

helo po.nag apply po ako ng ATM acount.my maintaining balance na 2000 kaso po na widraw ko lahat.active pa po ba account ko? kung hindi na pano po ulit maging active yong acount ko?salamat po

Nora Tamba said...

I withdrew all January 29, 2015
QUESTION: Hello. I applied for an ATM account. My maintaining balance is 2000, but I withdrew all. Is my account still active? If no longer active, how can I reactivate my account? Thanks
ANSWER:
If your account balance decreased to 0.0, it's most likely that your account is already closed. But try making a balance inquiry at your bank's atm machine. If this is BDO, I think they're not reactivating accounts. Open a new account. Explore BPI Easy Saver -- it does not require a maintaining balance, but it charges 5 pesos for atm balance inquiry or withdrawal.

Anonymous said...

Good day Maam Nors...i have read your blogs..i gained lots of info from you. Youre a blessing with everyone. By the way i would like to ask about the MADB of checking account, is this the same from the savings account?i was charged by two consecutive months..Last Nov 13 i used the maintaining balance by issuing of check. Then i returned that 5k on dec 5, i did not worry kasi lam ko my mga PDC ako so there are moment na nagdedeposit and issued ng checks within a month. But i was wrong, i was charged 300 last dec and becoz i was not worried they charged me again last this Jan. This Feb i checked my account i only have 4600 only. I felt sad coz all i know i maintained the balance.

Nora Tamba said...

About Maintaining Balance for Checking Accounts:
Thank you very much for your encouraging words.
Yes, the formula used for MADB for savings accounts is the same as that for checking accounts. Based on what you said, you indeed were not able to maintain your MADB in Nov and Dec., so you were charged 300 on Dec 31. I assume you again were not able to maintain your MADB in Jan and in Feb, so again you were charged on Jan 31 and Feb 28.
If your required MADB is 5k, you should make sure that your balance at the end of every day should be 5k or more. Every day.
This means that if your account contains only 1k from Day 1 to Day 15, you should deposit at least 8,750 on Day 16 and have this 8,750 in your account until Day 31, so that your MADB for the month will still be 5k.

Nora Tamba said...

About paying bill through atm and global money transfer fees :
I have a question ms. Is there a charge for paying credit card bills thru atm transaction if i use a different savings bank account? Is this procedure safe?
How much is the charge for money transfer thru bank from qatar to manila? Thanks po God bless
ANSWER:
If you use the atm of another bank to pay bills, you will be charged. So use your own bank's atm. It's also easier to transact with your own bank in case of an atm glitch.
Generally, yes, the procedure is safe. But before using an atm, make sure it's not out of order and not out of transaction slips.
For me, I prefer paying my bills through my online bank account.
About remittance fee from Qatar to Manila: It ranges from 15 to 25 QAR.
March 11, 2015

Anonymous said...

Sobrang grabe lang po na kapag hindi ka nakapag comply sa maintaining balance ay katakot takot na 300pesos ang charge hanggang sa tuluyang maubos at magclose ang account na pinaghihirapan mong I maintain samantalang ni hindi ka yata tumubo kahit 30pesos lng sa pagtatabi mo ng pera sakanila gano man katagal pera mo don at kaso dadarting din time na d ka makakapagmaintain gawa ng gipit pa tayo ..sana ganyan din kalaki tumubo hindi puro deductions lng ang alam nila kaya minsan nakakatamad din at nakakawalang gana mag lagak ng pera sa banko #vien13

Anonymous said...

I have 850 pesos left sa atm tpos winithdraw ko knina yung 800.. my 50 pesos pa pong naiwan. Tanong ko lng po, mgcoclose na po ba yung account automatically? Ilang months po ba bago sya automatic na ma'close?

Nora Tamba said...

QUESTION about account closure:
I have 850 pesos left in my atm then I withdrew a while ago 800, leaving 50 pesos. Will my account close automatically? How many months before it will automatically close?
ANSWER:
Is this BPI Easy Saver? If it is, it will not yet close. It will become dormant after more than 2 years of no transaction.
Is this a regular atm savings account with a maintaining balance (MADB) of 3k? Or BPI Family atm account with an MADB of 1k? If yes, your account has been closed if this is the 2nd month you fell below the required MADB. If this is the first month you fell below MADB, but you will fall below MADB again this April, your account will close on Apr 30 or May 1.

Nora Tamba said...

COMMENTS about the 300-peso Below-MADB Penalty:
It's really so bad that if you haven't complied with the maintaining balance requirement, they deduct 300 pesos continuously until your balance is wiped out and then your account is ultimately closed, even if you tried so hard to maintain it for a long time, and despite the fact that your account did not earn even just 30 pesos. But of course there comes a time when we are not able to maintain our accounts due to difficulties.
I wish the interests are also as big as the deductions, which seem to be their main thing. This is why sometimes it's so discouraging to put money in the bank. #vien13
ANSWER:
Well said. Banks earn much from bank fees and penalties. BUT you can use banks wisely...by learning about them. There are accounts like BPI Easy Saver. Find smaller banks, even rural banks, that have smaller maintaining balance requirements.
Thanks for commenting. Have a nice day.

Anonymous said...

Hello..sa bdo po ako. diko maintindihan kasi sabi sakin sa bdo nung nag open ako ng account 10k daw maintaining balance.nung nagsearch ako wala nmng 10k.. ang nandun lang 5k,15k..bsta walang 10k.. and diko tuloy alam kung mapepenalty naba ako kasi may 6k pa sa account ko..help pls

Anonymous said...

Tapos paano kung 10k nga yung maintaining balance ko sa bdo tapos 1k nlng itira ko ..maclose na ba account ko?kasi need ko tlga money ngayon e..

Nora Tamba said...

QUESTION about BDO's 10k maintaining balance
Hello, I have bdo. I don't understand -- BDO told me when I opened my account that 10k is the maintaining balance. When I searched, I didn't see 10k. I saw only 5k, 15k. No 10k. So I now don't know if I'm getting a penalty as there's only 6k in my account. help pls. Then if the maintaining balance is really 10k at BDO, and if I leave only 1k in my account, will it be closed? I really need my money now.
ANSWER:
I'm surprised you did not believe what the BDO officer told you that 10k is the maintaining balance. Is your account a passbook account? The maintaining balance is really 10k. You can see this at this BDO maintaining balance webpage.
If your account is atm-only, your maintaining balance is 2k.
Is this the second month you will not maintain your account? If yes, then better withdraw all and let your account get closed, so you won't lose your money. Start with an account with a lower maintaining balance requirement. Look at these saving accounts

Anonymous said...

Hindi po.. mag 1 month plang po na di ko na maintain yung dapat na balance.. pero paano po kung kukunin ko lahat yun at naclose yung bdo ko..pwede paba akong magopen uli sa ibang bdo branch uli?

Anonymous said...

I have 850 pesos left in my atm then I withdrew a while ago 800, leaving 50 pesos. Will my account close automatically? How many months before it will automatically close?
ANSWER:
Is this BPI Easy Saver? If it is, it will not yet close. It will become dormant after more than 2 years of no transaction.
Is this a regular atm savings account with a maintaining balance (MADB) of 3k? Or BPI Family atm account with an MADB of 1k? If yes, your account has been closed if this is the 2nd month you fell below the required MADB. If this is the first month you fell below MADB, but you will fall below MADB again this April, your account will close on Apr 30 or May 1.






--> sa BDO po yung account

Anonymous said...

I have 850 pesos left in my atm then I withdrew a while ago 800, leaving 50 pesos. Will my account close automatically? How many months before it will automatically close?
ANSWER:
Is this BPI Easy Saver? If it is, it will not yet close. It will become dormant after more than 2 years of no transaction.
Is this a regular atm savings account with a maintaining balance (MADB) of 3k? Or BPI Family atm account with an MADB of 1k? If yes, your account has been closed if this is the 2nd month you fell below the required MADB. If this is the first month you fell below MADB, but you will fall below MADB again this April, your account will close on Apr 30 or May 1.






--> sa BDO po yung account and with passbook po sya

Nora Tamba said...

QUESTION about BDO passbook maintaining balance requirement and about opening another account
It's for only 1 month I didn't maintain my account. For example, my balance is only 1k, will it be closed? What if I withdraw all and my account gets closed, can I open again?
Is there another passbook account with a lower maintaining balance?
ANSWER:
If it's only for 1 month (for example, March only), then 300 will not be deducted, but if you'll not maintain again this April, 300 will be deducted on April 30.
There's no other BDO passbook account with a lower maintaining balance.
You can open another account at another BDO branch, but they might ask you why your first account was closed after only 1 month.
Why not open an atm-only account? It's maintaining balance requirement is only 2k.

Anonymous said...

Hi po Ms.Nora ask ko lang po may account po ako as PS Bank and may maintaining po na 5k and I have 9k bal if withdraw ko po 8k tomorrow how much po need ko deposit next month para wala me penalty or magka problem sa account ko?

Nora Tamba said...

QUESTION about deposit amount to maintain balance April 20, 2015
Hi po Mrs.Nora, I have an account at PS Bank and the maintaining is 5k and I have 9k balance. If I withdraw 8k tomorrow, how much do I need to deposit next month to avoid penalty? or will my account have a problem?
ANSWER
This April, your average daily balance will be 6.3k:
9k x 20 days = 180k
1k x 10 days = 10k
Total = 190k
190k / 30 days = 6.3k
This means you have maintained your account this April.
For the month of May, deposit 4k on May 1 and have a balance of 5k on May 1. Maintain this 5k from May 1 to May 31.

Nora Tamba said...

Follow-up question about maintaining balance:
Thank you po for the info Ms. Nora, your blog really helps. What if I won't be able to deposit on May 1, but on the last day of May? Do I need to deposit the same amount 4k?
ANSWER:
Deposit 4k on May 31 or June 1. Make sure your daily balance from June 1 to June 30 is 5k or more. Check from time to time if your balance is 5k or more (use your bank's atm machine to avoid atm fees).
In summary, if you will not maintain your balance in May, you should maintain it in June, so your account won't fall below the maintaining balance for 2 consecutive months.
By the way, was your daily balance from April 1 to 20 really 9k?

yumi said...

Hello, I didn't know the maintaining balance in Philippine banks are calculated daily. Here in Bahrain, as long as you have the minimum balance in your account at the end of the month, there will be no charge.

I'm glad I stumbled upon this blog and this topic because I'm planning to open a Philippine bank (still undecided which bank though) account that I can use when I'm in the Philippines.

Nora Tamba said...

Hi yumi, thanks for the info about maintaining balance in Bahrain.
Yes, in the Philippines, the average daily balance for the month or monthly average daily balance (MADB) should be equal to or more than the maintaining balance requirement.

Anonymous said...

Hi,

Today is May 29 and a Friday while May 31 falls on a Sunday, when will the machine see if my checking acct with BDO (maintaining balance of 5k) is below maintaining balance and be charged 300pesos? I think this is my second month already. Is it today or May 31 (sunday)?

Nora Tamba said...

About when the maintaining-balance penalty is deducted:
It should be between the last hour of May 31 and first hour of June 1. But if you issued a check due today or Sat or Sun, add 300 to ensure your funds will be enough, in case the bank has an unfavorable policy.

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