Banking in the Philippines with US Dollars
As an American living in the Philippines and drawing a military pension from the US, I'm obviously concerned about how to get my hands on my money every month. There are several ways to do it, but I'll tell you how I've been banking in the Philippines with US dollars so far and what changes I'm making in the near future.
Prior to Arrival in the Philippines
When I made the decision to sell my house in Phoenix, Arizona (US) and move to the Philippines, I did an Internet search for all of the banks in the Philippines. I needed to open a "dollar account" since I would be depositing a large sum of money (from the sale of the house) in US dollars and also because my monthly pension is in US dollars. I found two branches for the Philippine National Bank (PNB) and they both allowed a person to open dollar accounts in the Philippines from locations in the US. One was in New York, New York and the other was in Los Angeles, California. I couldn't find branches for any other banks from the Philippines, although the banking page for the Retired Activities Office said there were several. Perhaps there were, but they weren't accessible to me without going to great expense.
After I sold my house, I deposited more than 90,000 dollars at the PNB branch in Los Angeles for an account in Olongapo City, Philippines. It's the money I used for the construction of the house I now live in, my 2006 Toyota Corolla Altis, and other things that are too long to list.
After Arrival in the Philippines
A day or two after I arrived, I went to the PNB branch in downtown Olongapo City. My savings bank passbook was already available for me to pick up and it showed all of the money in the account. Since then, I've continued to use PNB because the other choices didn't appear any more attractive.
A week or so ago, my wife (currently in the US) went to the main branch of the Wells Fargo bank to close one account and open another due to the blank checks she ordered disappearing in the mail. The last thing we need is to have someone committing fraud with our checks.
The old account was a custom checking account. The new account is another custom checking account, but this time it has benefits for military personnel on active duty or retired. Telegraphic wire transfers from the old account to PNB required a fee on both ends. The new account requires fees, but not if I change banks here in the Philippines.
Future Banking Plans
According the representative at Wells Fargo, wires from there in the US to the Bank of the Philippine Islands (BPI) are free. That's one good reason for switching from PNB to BPI.
There is another PNB branch at the Subic Bay Freeport Zone (SBFZ), but I've been there to inquire and they told me I had to use the branch in downtown Olongapo City for direct deposit of US dollars from my pension. I hate going to the downtown branch because there's never any parking nearby and because there's always a line of people requiring a wait of up to 2 hours. There's never a line at the SBFZ branch and there's always plenty of parking nearby.
There are two branches of BPI at the SBFZ, both of which will service direct deposit accounts for Americans. Add that fact to less fees and I'm sold. I've check out BPI and as far as my pension goes, it's a winning situation.
The Google AdSense, PayPal US and PayPal Philippines Conundrum
In February of 2007, I realized I had a problem if I wanted to use PayPal for anything. A regular PayPal account wasn't available in the Philippines. Even though my direct deposit went to a US-based bank routing number (RTN), PNB could not find the test payment.
I didn't have a problem receiving Google AdSense payments to that RTN for PNB. If I have no problems switching the payments to go to BPI, I'll be able to close the PNB savings account. I would like to have my PayPal US payments going to a dollar account at BPI, but I won't know about it until I try it.
The PayPal Philippines option, which became available sometime before the end of January in 2008, only deposits in Philippine pesos. I really don't want to open a separate account for pesos if I don't have to. If I have to, I have the PayPal bank codes for the Philippines. I think each deposit has to be 7,500 pesos or more (about $170 in US dollars) or else a fee is charged by the bank.
Why the Near Future?
Well, I don't want to be juggling money in August and September because my wife will be here on vacation from the day of her birthday in August until a month later. She'll be returning to the US in September for a period of about 6 months. She has to finish paying off medical bills and such. If it wasn't for that, it would be a one-way flight. I can't tell you exacting when I'm going to make changes because it depends on how I finance my activities. I can say that it's going to happen as soon as I can make it happen.
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Wow, I hadn't even thought of how complicated it would be to live in another country. Banking is so taken for granted here. I just recieved my direct deposits and have paid all my bills this month and didn't even leave the office. Yes, we do take our banking for granted. Have a great day RT.
In our part of the world, PNB means Punjab National Bank, a Public Sector Bank with many branches all over India.
That's why I showed it as Philippine National Bank (PNB) the first time. To avoid that kind of confusion.
I wasn't really serious. I mentioned it just as a piece of information.
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Wow, what a lot of work has to be done to get your money in the bank. Most of us just take all this for granted. Have a great day RT.
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I am also a retiree from the Corps. I have been banking with PCI then changed to Equitable then to BDO. Since in the earlier 90's I have had direct deposit in dollars to a ATM account and they only charge 3 dollars. You can withdraw pesos automatically from the ATM. I also do the same with SS.
Fortunately, there are enough options available now that didn't exist before. I have several accounts for moving money around, both in the Philippines and in the US as well as PayPal for online purchases. I have a US visa card and would like to have a Philippines credit card, but they're secured credit cards as far as I can tell.
RT
So what would you suggest to someone who will spend 9 months in PI and 3 months in US? Should I open a dollar account in PI bank or just write a check to a peso account?
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Dan, the only problem with the check-writing is the time lag which you mentioned on your own blog. If you can deal with that, then that works. I think having both dollar and peso accounts takes care of most problems, especially if they can be linked together. That's what I'm using PayPal for — kind of like an intermediary bank which isn't a bank.
I would not have guessed the Philippines' banking system was so limited. hmm..
I have both pesos and dollars account, since I spent my time 6 months in PI and 6 months in US.
The problem of depositing a US check to my dollar account is the waiting period. PNB has 45 days but BPI is only 15 days, but in Marinduque there is no BPI branch, so I have no choice but use PNP.
I agree with you on this one David.
Good rundown.
I've been living here about 3 years now and have looked into several methods but haven't found one better than leaving my US direct deposits go into my exisring credit union account in the US and then writing myself a dollar check on that bank to my BDO dollar account here, first of each and every month. First iof every month the money from the 2nd month back is avialable and the next two months worth are in the processing queue.
Yes you do have to wait, but there is no charge and no other hassle. I note that so many people seem to live paycheck to paycheck that they can't use this method, but it works fine for my wife and I.
After all I waited 38 years for the pension to come through, so what is waiting 38 (or less) banking days.
We are probably staying in the Philippines long term, but I still don't want direct deposit to a Philippine bank. If I had to go back to the US for unforeseen reasons or to some other country for along term stay I want the bulk of my money still in the US.
But there are many methods, and all will work if they suit the individual. BOI is agood bank, but be careful you don't confuse it with BPI family Bank. This is an owned subisdiary of the main BPI and the accounting systems do not connect … moving money from BPI to BPI Family is like moving it to a totally different bank.
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A 2 hour wait in line at a bank. I can not imagine what would happen in the states if a bank did that. I would be looking for new bank after it happend twice.
I wonder if you could keep one account in states for paypal and have automatic payments from that bank to your new one at set amount so not to get charged a fee.
I had problems with my online account that went down for over a week. I could not imagine all the trouble you have had.
Do you have to pay taxes in the US for the pension or is it tax free. What about philippines. Sounds like alot of work setting up something that should be simple now.
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My pension is tax-free. It wasn't tax-free before 2007 though.
Setting stuff up in the Philippines is hard only because the banks aren't tied in to other banks the way they are in the US. The biggest gripes I have are the lines to wait in and the fact that I can't get US dollars from an ATM anywhere.
I've been living there 9 years now, most recently in Pampanga, near Angeles. I have used BPI exclusively. I do a few wire transfers each year at USD 43.75 each ($25 fee from Navy Federal Credit Union and $18.75 from BPI). It's not the most cost effective I guess, but it works, and the money is available next day. If anyone has a better way…I'm all ears.
Western Union fees are cheaper now. I think my wife spent $18 to send me $1000 the last time. Unless you're sending a lot of money (like $10K) from the US, wire transfer fees aren't the cheaper way to go.
They sure do make it complicated. Can't you just have someone in the states setup an account for you to use?
They sure don't make it easy for you to get your money.
Try http://www.unionbankph.com Unionbank of the pHIlippines website
https://ebanking.unionbankph.com/EbankEON/web/L001/EON/jsp/Fees.html
https://ebanking.unionbankph.com/EbankEON/(ds5nl5555qzzk1y3musfdy2o)/web/L001/EON/jsp/user/RetailSignOn.aspx?RequestId=18136
Unionbank EON account and Paypal are the best combination here in the philippines.
https://www.unionbankph.com/content.asp-paramID=AMBKADAIBA.htm
how can i know the routing number of my account in PNB guagua branch. The Social security of US asking my routing account for my application.
The routing number is the same for all the branches — the main PNB office. The account number determines the actual branch.
Why you not use HSBC bank in USA with their online banking services? HSBC has branch in Ermita, Manila, Philippines. You can keep your USD in USA and remit small amount in Pesos for use in Manila through online banking when required. HSBC is a world renowned bank based in Hong Kong. HSBC is the Hong Kong and Shanghai banking Corporation Limited. HSBC is the bank widely used by traders in China, India, Middle East and Europe. It is a bank of great convenience.
I live in Olongapo, not Manila. No HSBC here that I know of.
URGENT NOTICE : Please be aware that NO money is safe in ANY Philippines banks. The PDIC. (Philippines Deposit Insurance Cooperation)is currently trying to cheat thousands of time depositors out of their savings. They are lying to the media but the scam is currently being exposed to the media by television networks. See 'Pinoymoneytalk' .
What is the exact website or blog site of Pinoymoneytalk. I want to know more about the news of PDIC cheating depositors. With regards to money transfer between US and Philippines, My experience with online banking transfer from US account in dollars to PI account in pesos with PNB has been hassle free.
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I see alot of people on this blog transfer money over seas. I wonder if you have to pay for exchange rate or if you just use Us dollars. If they charge for transfer then charge to exchange it i would think it adds up to alot of money over time.
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I have a dollar account at the local bank. When I have money wired, it's in US dollars. If I use Western Union, I receive in dollars only. The exchange rate, when combined with money transfers, is almost always lower than when you do it on the local economy.
Wow, with a life of no regular work, but receiving a fixed pension, what a great opportunity to focus on internet entrepreneurship. You can have so much time to blog.
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The fixed pension is enough to live on and do what needs to be done, but that's about all. I took up blogging as a time-consuming hobby at first and then elevated it to something else when I found out I could make enough to actually enjoy living in the Philippines.