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Wednesday, December 4, 2013

PDIC: What I think of them?

For those who are not familiar, PDIC is the Philippine Deposit Insurance Company.  Like any other countries, there is an agency that governs and protects deposits, equivalent to certain amount.

I have noticed (and I think this is mandatory), when I enter a bank, they posts the picture above at the door.  At least I know.  Feels a bit secure.

Deposits in the Philippine banks are insured for Php 500,000 (Philippine Pesos).  Not that much maybe but at least you know you'll get something when, God forbids, your bank closes.

I admit I haven't explored PDIC's website (click here) fully but after watching an episode of "On the money", they featured PDIC's new book that is fully illustrated to explain their function and help depositors (in someway).

At first look of the website, there are tons of links on the left of the screen, which I didn't bother reading until now, as I write this post, in Bold Blue color.  What struck me is the "7 habits of a wise saver"... hmmm.. interesting. 

I have asked several of my friends questions about their banks, their loyalty to the banks and why they chose it.  I even went further and asked, what their bank offers.  Sadly, most of them don't understand.  Working abroad, people and colleagues opened an account simply to have means to send their money into. What their bank can do for them, they have no idea.

What I think of PDIC?
PDIC, in a way, makes me feel safe.  I admit I don't have that much money in bank.  But at least I know that Php 500,000 is secure in my account.  Since, I believe, it is mandatory for all banks (rural, savings or commercial banks) to be a member of certain association of banks and PDIC, it gives the depositor a certain kind of security that the money you saved are being monitored.

Sometimes, provinces only have rural banks and I've heard they're scared to deposit there.  One, interest rates are higher than commercial banks.. is it real?  For PDIC, it's a red flag.  Although, I think as long as your money doesn't exceed 500,000 pesos, you're fine.  You'll get your money back.  It may not be right away, but it will.

PDIC doesn't recommend certain banks.  So it's up to the individual to choose which banks they prefer.

Where should one entrust their money?
IN MY OPINION, here are my top 5 criteria in choosing a bank and I believe it's applicable everywhere.
  • Choose a reputable bank.  Choose banks that have been in the industry for a long time.  It's not a guarantee it's not going to close, but if they'd overcome world war and depression, they can still go on for a few more years.
  • A bank that has other assets, aside from banking.  Some banks engaged into real estate or are backed by several other companies.  RCBC (Rizal Commercial Banking Corporation) is owned by the Yuchengco (am I right?) Group of companies.  It's not solely banking.  So if the bank is shaky, other companies will help it out.  Same with BDO.  As long as SM is going strong, so will BDO.
  • A good online banking system.  This is the best.  BDO and BPI have good online banking system.  However, I like BDO more ever since they've made improvements in their site.  Their functions are easy-to-follow.  It even has a "Remit" option which allows me to transfer funds from my BDO account to any local banks, door-to-door, or pick-up, with a minimal fee, of course.  BPI allows me to open an account online and take my card from a BPI Branch nearest to me.  BDO doesn't have that yet.  I also liked that I can pay my utilities online.  I wish they accept payments for SSS, PhilHealth, Pag-IBIG online also.  But I have to enroll them.
  • UITF, Investing option.  I've seen in BDO and BPI their Unit Investment Trust Fund Programs.  I've noticed BPI is cheaper (is it new?).  But those options are great.  You can even enroll it to your account so you can add funds to your UITF automatically or manually.  For BDO, once you enrolled your UITF's additional funding, it's automatic and you have to write or apply again to stop that feature.
  • Has a lot of branches.  I have an account in a savings bank and the problem is, they don't have that many branches.  Commercial banks however, charge you for deposits and withdrawals made in branches other than your parent branch.  Meaning, if I withdrew (over-the-counter) in Makati from my bank branch in Malolos, they'll charge me a fee.  Why? They're the same bank...

PDICs Reminders:
  • Transact only with authorized or official representatives of the bank
  • Deposit your money yourself
  • Keep your receipts
  • Update your account regularly
  • Diversify.  Do not put all your money into one bank or into one account. 
  • Download:  "Usapang Pera - Guidebook".  It's on the right side of the homepage.

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