November 17, 2017
Hello to everyone who reads this blog!!!
Today my story is about something everyone will encounter – Money! How to transfer money from overseas has always been a big headache for all the foreigners living in one country. I, like everyone who lives long in the Philippines, will have to face the difficulties as well.
Here I’m going to reveal a few options to receive money in the Philippines and their pros and cons:-
1) Through the ATM
Near the school there are three ATMs. However there are always long queue there in the morning as people are withdrawing their cash for their daily expense. Hence I recommend going there after lunch and use the BDO Bank ATM instead of the BPI Bank ATM (BPI is their national bank, hence there are more people using the ATM)
Cons: Expensive and big restrictions on the money that can be withdrawn
If you need a large amount using ATM might not be a good option. For each transaction, the ATM will only disburse a maximum of 10,000 pesos (~USD 200). You can perform the same withdrawal transactions up to 15 times or 17 time. That makes 170,000 pesos the maximum you can get for a day (~ USD 3400). But after that your card will be blocked, and you will have to call your bank to release it again.
Also, it’s quite expensive as you have to pay a fee of 200 pesos (~USD 4) for each transaction fee, on top of the higher exchange rate that you are already paying. Hence, you would spend additional USD 68-100 for the withdrawal of USD 3400. That’s more than 3% of the total amount you are getting.
Through Western Union, you pay a fixed amount of commission for the money sent. You can receive money from any Western Union approved banks or merchants. It’s very easy to send and receive the money as all it takes is the passport information of the person who is receiving the money.
Cons: Can be expensive as there’s a fixed commission
The maximum amount that can be sent per day is $ 5000 (with a commission of $ 200). Around 4% commission for the amount sent. However, you are not going to lose anything in the exchange rate as Western Union normally use the highest rate at the moment for the currency exchange.
3) Open a bank account at the local Philippine banks
Pros: Only pay one time transaction fee and no more charges
The last option is to open an account in a Philippine bank. Then you can transfer money from the bank of your country to this bank account. In such case, you will only be charged one time of the transfer and transaction commission fees. Then, you can withdraw any amount in the bank without commission and any restrictions.
Cons: Troublesome and long process
To open an account with a bank, you will need a passport, a Philippine ID card (ACR I-Card) (must be applied by any foreigners staying in the Philippines for more than 60 days), a certificate of a bank account in your country (Some banks don’t ask for it), a passport-sized photo, and confirmation of your address (You can use your lease contract or utilities bill as the proof of address). Also, you must have at least 10,000 pesos in your account in a Philippine bank when you are setting up the account.
Opening an account can take from two weeks to a month, and this is subject to the approval of the bank managers.
Near 3D academy there are several banks where you can go and open an account as a foreigner.
To avoid wasting time, read the rules and requirements for opening an account on their websites first prior to going there.
Thank you for reading 🙂
We are a team of interns and students studying and working in 3D Academy at the beautiful island of Cebu, Philippines. You can always reach us at the social channels below. We will reply within 24 hours :)