Financial Planning | Personal Finance | Article
Your Wanderlust Dream Might Be Just One Bank Account Away
by Rica | October 12, 2023 | 5 mins read
Revenge travel is real with most people trying to tick as many places off their bucket list as they can. The thirst for travel has never been more felt.
But as you’re on the lookout for airline seat sales and promo fares, did you know that having a bank account is essential if you want to travel?
This is because for countries with a travel visa requirement for Filipinos, a bank account is a pre-requisite for a successful visa application.
Apart from allowing you to deposit, withdraw, and transfer your money, a bank account is also a common requirement for international travel.
Why you need a bank account to travel
During your visa application, countries will need you to show that you have the means to fund your trip. You’ll need to produce a form of your bank statement or a similar certificate to show that you have the minimum balance requirements in your account.
While you can opt to head to places that don’t require a visa, for most of the popular countries that Filipinos want to vacation in, you need to have a visa.
According to the State of Southeast Asia 2023 Survey Report conducted between November 2022 and January 2023, Filipino respondents named the following countries as their preferred holiday destinations:
|An ASEAN members state
|An EU member state
|Republic of Korea
Of course, your visa approval is not a sure thing when you have a bank account. You may also need to submit your personal documents such as passport, birth and marriage certificates, as well as application forms, trip itinerary, and a letter of invitation to name a few. But with so many popular destinations requiring a visa, why not ensure that you can apply for one by opening your bank account if you don’t have one yet.
Perks of having a bank account
Other than just being an essential visa requirement, having a personal bank account is also useful for other reasons.
Instead of keeping your money at home where it might go missing because theft, damage, or simply getting lost, protect it by storing it in a bank. There’s also no need to fear that the bank will collapse or run away with your money. All deposits of up to ₱500,000 are insured by The Philippine Deposit Insurance Corporation.
Saving and earning
Other than staying safe, your money also earns interest and grows in your bank. Whilst small, it still beats not earning at all when you leave your money at home.
You can easily make transactions and payments online without having to spend time at the bank.
Access to financial instruments
Whether you want to get a credit card, a house or an auto loan, or an investment, it’ll be helpful to have a bank account.
All the transactions you make are recorded your in bank account and sent to you in monthly statements. These can come in handy when you assess your spending habits to help you budget your money better.
What type of bank accounts are there?
There are four types of bank accounts available in the Philippines.
This is the most basic and common type of bank account that allows you to keep your money safe in a bank and withdraw it anytime you want to. You can open one for as low as P100.
This one comes with a checkbook that you can use to issue checks if there are no other payment options. This could include paying for rent, bills, or house and car loans. However, this account type comes with a higher opening balance requirement and average daily balance requirement.
One part investment, one part savings, this bank account lets you deposit your savings and gives you a better interest rate than what a savings account would. However, there is a lock-in period during which you can’t withdraw the money.
This account lets you deposit, send, receive and make other transactions using international currencies. It may be suitable if you are a frequent traveler.
How to open your bank account
Most Philippine banks require the following when opening an account:
- At least two (2) valid IDs
- Two (2) copies of your most recent 1 x 1 ID picture
- Proof of Billing (utility bills from electricity, water, telephone and internet companies)
- Tax Identification Number
This can be done in person or online, depending on which bank you decide to open your account. Take some time to select which bank and type of account is more suited to your needs. Don’t forget to ask about any fees involved with the account, too.
Whether it’s to fulfill your dream getaway or something you are required to submit, getting a bank account works to your advantage. Treat it as a springboard to your financial planning journey or a step you take towards taking charge of your finances.