After we adapted the ways to be a better saver one day we realized the that we have enough cash to stash. What will we do then? We might go directly to the nearest bank and open a savings account for our savings. But wait a minute - aren’t we forgetting something? can we just go the bank and open an account just like that?

Of course not. We have devoted much time & effort to save such amount so we must be careful in choosing which bank we want our money to be kept.

Here are some tips to protect us when dealing with banks. Whenever we choose banks we have to make sure that we have considered the following points.

Know the bank’s reputation. Investors and depositors should read newspapers and surf websites of BSP and the bank to know about the bank’s capitalization, ranking, financial statements, income projection, and products and services.

Know the bank’s products. Depositors should also determine whether a particular bank product is a deposit or not. They may confuse deposit products with investment schemes not covered by PDIC.

Know the current market interest rates. Depositors should be cautious with overwhelmingly high interest rates. Unusually high interest rates compared to market interest rates may mean liquidity problems and higher risks.

Read the fine prints. Depositors should also be careful not to miss out the fine prints—tiny words, phrases, or sentences in the passbook, certificate of time deposit, or any documents that need to be signed.

Secure and update bank records. Depositors must secure passbook, ATM card, certificate of time deposit, checkbook and other bank records. These records serve as proof of the deposit accounts.

Check for signs that the bank may be in trouble. Depositors should be wary when they cannot withdraw their money on demand or if they can only withdraw money at a schedule given by bank officers. Further, they should be cautious of aggressive solicitation by bank marketing personnel. Finally, depositors should also take note of their bank’s past due loan ratios. High levels of unpaid debt may lead to a bank’s difficulty in servicing withdrawals.

reference: Philipine Deposit Insurance Corporation (PDIC)