Regular readers will recall I often counsel against using a bank in the US to keep your main cash resources while living in the Philippines.
Now don’t jump to conclusions. I do not recommend you put all your money in Philippine banks either. In fact, I don’t keep any more money in my Philippine bank than I need to for immediate (next few months) expenses. Three reasons:
- The PDIC (Philippine Deposit Insurance Corporation) only insures up to P500,000 (about $11,800 USD at today’s rate) per depositor … don’t fall for BS schemes that involve multiple accounts under different combinations of names .. P500,000 is all you will ever get. And payout is s..l..o..w.
- When you deposit a check … like in my “write yourself a check … method, it takes nearly a month for that check to clear. What if some emergency came up and you had to leave in a hurry? Fancy being back in the USA and waiting for a Philippine bank to clear your check and then wire you the money by ‘remote control’? I don’t.
- The US is becoming hugely spastic and intrusive on reporting any and all foreign investments and bank accounts. The more money you have overseas, the more hassle you’ll face .. so I take the practical man (coward’s) way out … and minimize my overseas holdings.
But all that being said, I continually hear from folks who say “I only want to have my money in a US bank, a real, “big” bank, like say Citicorp.
They were crooks, folks, back in 2008 when they stole your pension and 401k money, they are unsavory (to say the least) here in the Philippines when they spend more time on ridiculous one-time promos than they do on any sort of honest customer service, and they are still playing fast and lose with your money today in 2012.
Think this is just grouchy old Dave spouting off? Well read the story and judge for yourself. Would you pay $158,000,000.00 in fines and damages, without even trying to defend yourself, unless you knew you were a crook?
Woman Who Couldn’t Be Intimidated By Citigroup Wins $31 Million
… The U.S. Justice Department decided to join her suit in January. Citigroup didn’t dispute any of Hunt’s facts; it didn’t mount a defense in public or in court. On Feb. 15, 2012, the bank agreed to pay $158.3 million to the U.S. government to settle the case.
Citigroup admitted approving loans for government insurance that didn’t qualify under Federal Housing Administration rules. Prosecutors kept open the possibility of bringing criminal charges, without specifying targets. …
So are you sure you want a “big, name brand” US bank handling your money? If you bother to read the article you’ll find virtually every other major US bank in similar schemes, cheating the US government (who is YOU, by the way), right now in 2012.
The “banksters” are the new “gangsters” and they aren’t taking any prisoners. One current presidential candidate (who has made millions, by busting out corporations and destroying worker’s pension funds) is in favor of rescinding the whistle blower laws which allowed Sherry Hunt to exposé Citicorp’s systematic rape of the US public. Wonder why he doesn’t like the idea of citizens being able to blow the whistle on crooked “banksters”?
Myself? I’ll stick with my Federal Credit Union. I advise you to do the same.
One of my biggest concern about having a substantial amount of money in a Philippines bank is data privacy. I don’t want the wrong people finding out how much money I have. This can lead to all sorts of undesireable consequences.
Valid point, but is the thrust of what you are saying aimed at a perception that Philippine banks are less private than US banks?
Actually, it’s quite the opposite. Now that the Swiss have given in to constant US pressure and offered up their numbered account holders to US scrutiny, the Philippines still enjoys some of th strictest banking privacy laws in the world.
Even the Philippine government themselves is forbidden by law to delve into foreign currency accounts, and there is no direct reporting to the US treasury. (something the US Treasury has been fighting for years).
Compared with the way US banks sell every aspect of your financial affairs to other vendors (read your terms of service some day and find out who actually”owns” you private information), Philippine banks are way more private and discreet.
This is good advice. My asawa and I do basically the same. We have a few months living expenses in a Banco de Oro (Philippines) account and the bulk of our funds in a regional US bank.
Yep, works for me … BDO is my bank too, it’s hard to beat the convenience of 7 day a week banking in the local mall.
Dave, it’s great to see you up and ruuning again, as you are my regular morning read. I plan to do as you suggest. I now have the majority of my funds in 2 different credit unions. However, I don’t believe these are
“Federal” credit unions. A, is there a difference? and B, should I look for a federal credit union in which to place
my funds?
I only use 2 US intities the first is a small CA bank called Farmers & Merchants Bank. I’ve used them since the 70s and they are rock solid. They had no involvement what so ever in any of the big bank fraud and failures and are rated as one of the strongest banks anywhere. I don’t pay any fees beyond ordering new checks with a $1,000 minimum balance.
The other is Capital One, where I have my credit cards. Over the years I’ve had my share of credit card whoas from the mysterious theft of my CC identity where over $7,000 was fraudulently charged to disputes over charges and Capital One has handled every one of them with 1 phone call.
I don’t run up my cards so I pay little if any interest and few fees.
As per Dave’s advice I am opening an account here on Monday, just not sure which PH bank is best?
I am planing to use BDO but am open to suggestions.