Typical Filipino Depositor’s Bank Balance...

[_Cathy_]

I'm surprised with the figures they presented. I know that we are a poor country but only 63000 have 1M and up deposit?!?

deposits of at least Php1 million make up only almost two percent of households with bank accounts. That’s equivalent to more than 63,000 households.

Almost two-thirds of families with bank accounts keep a deposit of only Php10,000 or less
By Entrepreneur Staff | May 29, 2017


If the average balance in your deposit account is only Php5,000 or less, you’re actually in good company. Almost half of the country’s households with bank accounts have only that much in deposits, according to the Bangko Sentral ng Pilipinas (BSP)’s latest Consumer Finance Survey released in January.

That’s equivalent to 1.6 million households today. The country has a total of 24 million households as of 2017, based on population projections of the Philippine Statistics Authority. But only 14 percent of these maintain a bank deposit, according to the BSP survey which was done in 2014. An overwhelming majority of those without bank accounts say they don’t have enough money to open one.

For the estimated 3.4 million households with bank accounts, the median deposit is Php5,300, according to the BSP survey. The median is the midpoint if all the deposits were ranked from smallest to biggest, and is a good indicator of the typical depositor’s bank balance. On the other hand, the average deposit is Php206,275, reflecting the skewed distribution of deposits in favor of large holders.

In general, the amount of deposits held by most Filipino depositors is quite small—another sign of the generally low savings rate of Filipinos. About 19.4 percent of households with bank accounts, equivalent to 652,821 households, own deposits of only Php1,000 or below. Another 28.4 percent, or 955,677 families, keep between Php1,000 and Php5,000 in deposits. About 15.3 percent, or 514,854 households, have deposits ranging from Php5,000 to Php10,000.

At the other end, those with deposits of at least Php1 million make up only almost two percent of households with bank accounts. That’s equivalent to more than 63,000 households. Still, though only few in numbers, these households own more than 80 percent of total deposits in the country’s banking system, according to BSP data as of last year.

The 2014 survey also reveals that 53.7 percent of households with bank deposits, equivalent to 932,121 households, are paid an interest rate of only two percent or less. At the other end of the range, some five percent, or 168,253 households, enjoy yields of between 6.1 percent and 10 percent.

About eight of every 10 households with bank deposits have only one account. Some 15.4 percent have two accounts but around four percent, equivalent to 134,502 families, have between three and six deposit accounts.


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[uls]

If you're wondering why there are so few people with more than 1M in the bank

My explanation would be ...

Why have more than 1m sitting in the bank earning close to nothing?

People with extra money would invest it

Buy real estate

Use it as capital for business

Many people are asset rich but not very liquid

[_Cathy_]

If you're wondering why there are so few people with more than 1M in the bank

My explanation would be ...

Why have more than 1m sitting in the bank earning close to nothing?

People with extra money would invest it

Buy real estate

Use it as capital for business

Many people are asset rich but not very liquid

It's 1M not 10M It's not like a person will lose hundreds of thousands for letting at least 1M sit in the bank.

[uls]

It's 1M not 10M It's not like a person will lose hundreds of thousands for letting at least 1M sit in the bank.

Another factor is deposit insurance

500k lang per depositor

Having more than 500k in one bank makes people nervous

Better to park extra cash in govt bonds

The govt is more creditworthy than a bank

[benchman]

i have a friend, a banker. now a branch manager.
sabi niya dati pa; kung meron kang million/s, better invest than have it sit in the bank(kahit time deposit pa) earning almost nothing.

sabagay, kahit sino naman yata bank manager ngayon nagkukumahog na alukin ka ng investment products nila once na makita na prospective client ka.

[uls]

Some weeks ago nag benta ng RTB ang bangko

Sobra lakas ng demand ubos agad

Tuwing may bond issuance mga malaking kompanya lagi oversubscribed

Sobra liquid ng mga mayaman anything that pays more interest than a bank binibili

[_Cathy_]

But we are talking only 1M PHP.

I don't think may mayaman na below 1M and deposit savings Maintaining balance ng offshore banks P4M (at least AFAIK)

[Walter]

It's 1M not 10M It's not like a person will lose hundreds of thousands for letting at least 1M sit in the bank.

Actually, one would lose about a hundred thousand pesos ... if invested properly, one could earn more than 10% annually so that is about a hundred thousand pesos ...

[Walter]

Also, that figure is based on a statistical survey ... they didn't really get the information from the banks ...

[uls]

Actually, one would lose about a hundred thousand pesos ... if invested properly, one could earn more than 10% annually so that is about a hundred thousand pesos ...

called opportunity cost

[MR_BIG18]

i have some stocks also, served me well

Sent from my SM-G955F using Tsikot Forums mobile app

[unmarked]

i heard that less than 1% of Pinoys invest in our market. That's an awful low figure compared to our neighbors Singapore, Malaysia, HK who are all in double figures. Considering that for as low as 5k, you can be invested in a basket of stocks.

Americans, I hear are about 50/50.

[uls]

i heard that less than 1% of Pinoys invest in our market. That's an awful low figure compared to our neighbors Singapore, Malaysia, HK who are all in double figures. Considering that for as low as 5k, you can be invested in a basket of stocks.

Americans, I hear are about 50/50.

yep

kasi madami pinoy di pa financially literate

[uls]

i heard that less than 1% of Pinoys invest in our market. That's an awful low figure compared to our neighbors Singapore, Malaysia, HK who are all in double figures. Considering that for as low as 5k, you can be invested in a basket of stocks.

Americans, I hear are about 50/50.

and also, i think pinoys' default investment when there's extra money is real estate

even the least educated, pag nagkapera, bibili ng lupa

[ice15]

My personal opinion... Yes we are a poor country hence, the "savings" are higher than usual.

Why do we save? Because we don't trust our pension system (SSS/GSIS)

In countries like Aus and Canada, they can afford to live without savings since the Government will support them in case they loose their jobs or get ill.

Economy will be much better if we all spend like there's no tomorrow. "Iikot ang pera"

But in reality, we need to save up for that "family emergency," school fees (we won't send our children to public primary/secondary schools) and extended holidays.

And yes the money will earn more if you invest it, but very few people has the time, knowledge and guts when it comes to "investments" plus we all need cash (liquid assets) for that family emergency...

[uls]

My personal opinion... Yes we are a poor country hence, the "savings" are higher than usual.

Why do we save? Because we don't trust our pension system (SSS/GSIS)

In countries like Aus and Canada, they can afford to live without savings since the Government will support them in case they loose their jobs or get ill.

Economy will be much better if we all spend like there's no tomorrow. "Iikot ang pera"

But in reality, we need to save up for that "family emergency," school fees (we won't send our children to public primary/secondary schools) and extended holidays.

And yes the money will earn more if you invest it, but very few people has the time, knowledge and guts when it comes to "investments" plus we all need cash (liquid assets) for that family emergency...

actually according to the article posted by the threadstarter...

very low savings rate natin

majority of people have only 1000-5000 in the bank (see page 1)

the threadstarter is surprised nga that only 63000 households have more than 1M in the bank

[shadow]

Tingin ko wala talaga ma save eh. I mean majority is pay check to pay check kung wala talaga ano ilalagay mo sa bangko?


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[uls]

Tingin ko wala talaga ma save eh. I mean majority is pay check to pay check kung wala talaga ano ilalagay mo sa bangko?


Sent from my iPhone using Tapatalk

yeah

sa mga employees na minimum wage or a little above minimum

zero balance lagi

kaya pag nagwithdraw sila sa ATM wala na paki sa transaction receipt

butal nalang kasi ang balance

[_Qwerty_]

pano makakapag save.. karamihan eh wala pang sweldo.. negative na agad..

[uls]

pag kuha ng sweldo bayad utang

tapos utang uli

it's a cycle