The first-time depositor

In a way, Lizzie Ang inherited her bank. Her same-named mother, Bess, wanted to help a friend who invested some of his real estate boom money in a savings bank.

"My mom withdrew her money from another bank to deposit it in her friend’s bank. We’ve seen the bank grow, seen it become a commercial bank, seen it change owners several times," said Ang.

Although the family initially put its money in the bank for friendship’s sake, it has kept its money there through the years because of the bank’s "bigness".

Based on informal surveys done by members of the Bankers Association of the Philippines, a first-time depositor is more likely to choose a bank which is either well-known, near his home or place of business or recommended by family or a close friend. Once a relationship is started, the depositor is not inclined to change banks, in part because of loyalty and in part because of convenience.

Opening an account

Opening a peso savings or checking account is easy. The depositor must fill up a personal data form, which is confidential and which falls under the Bank Secrecy Law, one of the strictest in the world. As part of the Bangko Sentral’s "know your client" policy, a bank is now more interested than ever to know where a potential client works and how much he makes from it.

For example, if a branch manager is uncomfortable with the P10-million initial deposit of the owner of a small auto repair shop or talyer, he/she can turn down the business.

The bank also requires the filling up of a signature verification card. To verify the signature, the depositor must present at least two IDs acceptable to the bank. Some acceptable IDs are your company ID, driver’s license, your passport, and your Social Security System or Government Service Insurance System card.

There’s a minimum deposit required, which varies from bank to bank. To earn interest on a savings account, the depositor must maintain an average daily balance or ADB. A depositor who fails to meet the ADB any time during the month is charged a small penalty, which is deducted from the depositor’s account.

The bank will also monitor your deposit and withdrawal pattern so that a sudden change in the pattern will be noticed. If you’ve been making deposits of P5,000, for instance, and this suddenly balloons to P1 million, bankers smell trouble. With the passage of the Anti-Money Laundering Act, any single deposit or withdrawal of at least P4 million by an individual that is not payroll related will be flagged down and reported to the Bangko Sentral.

Opening a dollar account is similar to opening a peso account except for two things. One, the minimum deposit is, of course, higher. Two, the confidentiality of the dollar account cannot be breached by the government without the written consent of the depositor.

To discourage money laundering, however, banks have asked would-be dollar depositors to sign a confidentiality waiver as a condition to accepting the business.

Once the bank account is opened, the depositor is given an automated tellering machine or ATM card so he/she can transact business outside the branch which holds his account.

Aside from the ATM, some banks also allow deposits and withdrawals by phone, internet or cell phone.

As a matter of courtesy, a bank employee will call a long-time depositor if there is not enough cash to service an incoming check. To prevent the check from bouncing, the bank normally gives the depositor up to 1 p.m. of the same day to deposit the needed money.

Every month, the bank comes up with a transaction record of deposits and withdrawals which the depositor can either pick up at the branch or have delivered to his/her home or office at no additional cost.

The bank also inserts new product brochures with the bank statement in an effort to increase the client’s business with the bank and, hopefully, to be referred to their friends.