This Deposit Product Will Help You Build Your Savings

BPI Direct Save-Up: Automatic Savings + Insurance

BPI Direct Save-Up: Automatic Savings + Insurance

Here’s a good product out there in the market that will help you build your savings. I’m not advertising BPI but whenever I find a product that I think is very well thought out, I’d like to share it with my readers.

BPI Direct, a wholly-owned subsidiary of the Bank of the Philippine Islands or BPI, offers BPI Direct Save-Up, and Automatic Savings + Insurance product that aims to help you save bit by bit, payday after payday.

The only potential hitch to this is that you would have to be an existing BPI or BPI Family Savings Bank account holder in order to open a BPI Direct account, BPI Direct being a branch-less, online- and phone-based bank. You have to apply for an account from BPI Express Online, BPI’s Internet Banking Portal.

Automatic Savings features

Your Save-Up account will automatically debit funds from your payroll account. All you need to do is to determine 1) the frequency of the fund transfer – you can opt for once a week, once every two weeks, twice a month, or once a month, and 2) how much should be debited starting at 250 pesos per transfer. You can automatically transfer as little as 250 pesos once a month and you’ll get 3,000 pesos plus interest in a year’s time.

Another feature that allows you to protect your savings (from yourself!) is that this account does not have an ATM card that goes with it so that you will not be tempted to withdraw the cash on a whim. It also doesn’t have a passbook that goes with it and BPI Direct, as already mentioned, also doesn’t have branches so you can’t withdraw that money over the counter! Now how do you access the cash when you really need it? You can easily transfer the funds from the BPI Direct Save-Up account to an account that has an ATM card and you can withdraw the cash from any ATM. The account comes with an information card that carries the account name and number, and also acts as proof of insurance, which is another cool feature of this account.

Free life insurance coverage

Technically, it’s not free because your regular savings act as insurance premium and the insurance amount depends on how much you have in the account. But nonetheless, it’s cool because you don’t have to go through medical examination or pay extra premiums. I like financial products that give you something back, and this Save-Up account definitely makes it to my list.

Your Save-Up account can pay up to 4 million pesos to your beneficiaries at the event
of your death, which is broken down as follow:

Basic Life Coverage: 5x your month-to-date average daily balance up to 2 million pesos.
Accidental Death: additional 5x your month-to-date average daily balance up to 2 million pesos if your death was caused by an accident.

Also in case of accidental dismemberment (loss of limb, etc.), the insurance also pays benefits of up to 2 million pesos depending on the schedule of dismemberment benefits. For example, it pays 10% of 5x your month-to-date average daily balance if you lose a finger, 20% if you lose a hand, etc.

To maximize the benefits of this product, I would suggest that you don’t keep more than 400,000 pesos in your Save-Up account. By the way, it doesn’t matter if you open one or ten Save-Up accounts, you will still get a maximum insurance benefit of 2 million. Since the benefit is 5x your MTD-ADB up to 2 million, saving any amount more than 400,000 pesos will still get you the maximum benefit of 2 million (400,000 pesos x 5 = 2 million pesos). Besides 400,000 pesos should be more than enough for your 6-month emergency fund, right?

So if you’re really keen about saving money, why not consider opening a BPI Direct Save-Up, Automatic Savings + Insurance account?


About Benedict Bernabe

Benedict Bernabe, 27. Benedict has a Master's degree in Development Studies from the University of Melbourne, Australia and a Bachelor of Arts degree in European Languages, cum laude, from the University of the Philippines Diliman. He has worked with the United Nations in the Philippines as the Community Facilitator of the Community of Practice on HIV&AIDS. He worked with Standard & Poor's Capital IQ, a financial information company, as researcher, translator and quality analyst in the investment research team. Prior to this, we worked at IBM Business Services. Benedict is a certified yoga teacher.

7 responses to “This Deposit Product Will Help You Build Your Savings”

  1. moneymaker says :

    Very valuable insight!
    I hope u can educate your readers to start investing small amounts into Mutual funds to ride on the bullish market that we are in.
    It would also be interesting to do a monthly comparatives of the fund performance among different institutions offering funds
    All the best

    • The Manila Finance Guy says :

      Hi Moneymaker,

      Thank you for your comment! I will definitely be writing about mutual funds soon. For this month, I will be focusing mainly on building up savings. It’s unbelievable how low our savings rates are compared to our Asian neighbors. Starting July or August, I will be talking about investments. I’m already itching to discuss mutual funds but I have to carefully build up information so that everyone can follow. Please share this blog with your friends!

      The Manila Finance Guy

  2. Marion says :

    Great post man!
    Just wondering though, is this a better choice, compared to other time deposit accounts out there now?

    Thanks again,

    • Marion says :

      * About the BPI direct maxi-saver account…

    • The Manila Finance Guy says :

      Hi Marion,

      Thanks for visiting and I’m glad my article was helpful. In reply to your question, the “better choice” would depend on your needs for the fund. If you want to build up your savings but want constant access to it, then go for the BPI Direct Automatic Savings+Insurance account. If you want your money to earn more than what other deposit accounts are earning, and you don’t mind locking it up for a certain period of time, go for a time deposit. I will feature time deposit products in a bit so keep posted!

      The Manila Finance Guy

  3. isko says :

    thanx 4 d p0st! Bt questi0n th0ugh: i dnt hav my save up acc0unt number yet… Hw cn i get 8? Besyds frm w8ing 4 my inf0card dt wud b n a m0nth! I already hv an xpressonline account…

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