picture from Wall Street Journal
That’s what I am reading on several forums on the internet. Pension companies, SSS and others do not like to send your money to the Philippines directly. For that reason an EXPAT has to find an other way of getting his money here. And going to get it yourself in your home country every month is NOT an option.
Many people are using bank checks to get their money available in the Philippines. Others are asking their family to transfer money to them through Western Union, Xoom or other companies. Some are using their credit cards and withdraw from ATM machines. All these methods cost lots of money. Costs vary on the way they do it and varies per bank. I have read of percentages of 5 to 10,
and that is a lot pesos which can NOT be spend on some cold SanMig.
Why not try to do it much cheaper, easier and keep the control over your money by yourself.
Did you ever hear of ON-LINE banking?
On-line banking is easy and 24/7 available.
google add
Today, most large national banks, many regional banks and even smaller banks and credit unions offer some form of online banking, variously known as PC banking, home banking, electronic banking or Internet banking.
Check What is online banking? and/or check the website of your own bank if they offer this service. If they do: check the terms and just apply for it. In the mean time you take care for a bank account in the Philippines with an ATM card (BDO is good and easy). Ask your Philippine bank for their BIC or IBAN code, this is a code to recognize the bank in the world and makes transfers faster.
After you have applied for on-line banking and it is approved you can easily transfer your own money from the USA or Europe or other country to your bank in the Philippines. All you have to do is logging in on the secured pages of your bank, make a money transfer to your account in the Philippines, and send it by filling in a secret code (your bank will provide you with that). After that, two days later your money is available for you in the Philippines.
All you have to take care for is that your pension, SSS or whatever money you receive is put on your bank in your home country.
My situation
In my case I have a bank account in the Netherlands with ING-bank. My pension is monthly put on this account. I am using on-line banking for more than 5 years now, never had any problems.
And I have a BDO bank account with ATM card in the Philippines on both our names (my wife and me).
Transfering 1000 euro ( 1,369.05 USD as of today Nov 13, 2010) cost me 5 euro ( 6.85 USD = ½ percent of the transfered amount) and the money is available in the Philippines after 48 hours. BDO always gives a good rate and do not charge me any more. BDO offers also on-line banking so you can check when your money is available. Is also handy to pay your monthly electricity bills, water bills and more (you don’t have to fall in line at the bayad center anymore).
Do the test
Compare how much it will cost you at the moment to transfer 1000 dollars or Euros to the Philippines, with how much on-line banking costs in your case. And do not forget that you are the one in control over your own money. You have to ask your bank (USA, Europe etc.) how much they charge you to transfer such amount to the Philippines.
And calculate how much money you loose every time you have to cash a check or when you get money from the ATM with your credit card. Not to mention the high fees for Western Union and other companies like that.
Also check how fast you will have your pesos in your hand by the present way of getting your money.
Is on-line banking safe?
Yes, I think so. The websites of the banks have secured pages where you have to login with user name and password. Only then you have access to your account data and are you able to send money. For every transfer you make you are asked for a secret code to make sure that it is YOU who is transfering money. Some banks are using a TAN codes list, others are using a security token device to produce that TAN code. Both ways are proven very safe.
I would appreciate your views on this matter, your experiences and how much money you loose every time you transfer money to the Philippines.
If you use on-line banking already, please let me and other users know about your experiences, costs and the like.
Nov 14, 2010 @ 09:12:45
Hello Jan, thanks for the info. If I where you, I would save a little bit at ING and send at least € 5000, because they charge 0.1% with a minimum of € 5. Are you sure BdO doesnt charge you anything? As far as I know they charge 200 peso + 0,3 peso / 200 peso documentary stamp for incoming remittances?
Nice site btw. Regards
Nov 14, 2010 @ 23:13:11
Dutchy,
Thanks for visiting my website and for the compliment.
I was only giving an example of sending 1000 euro. Bankcharges vary per bank.
Nov 15, 2010 @ 08:04:50
Hi Jan,
I have my USA Retirement deposited in PNB. It actually goes to the PNB branch in NY as Dollars. I guess that is why I have no trouble with the deposits. They charge a fee of $7 per deposit, and I go to the local PNB branch just down the street to get my Dollars or Pesos. They do not charge me for the withdrawals, no matter how many I get.
Nov 15, 2010 @ 15:58:23
Thanks Arthur,
Good for you to have it done this way.
Nov 22, 2010 @ 21:07:49
Hello Arthur..
I intend to retire next year in Philippine and I must live near water…
Where this photo was taken? Did you go Fishing ?
Tell me some DO’s and DON”T’s ..Tell me something about Rents, Internet accessibility, etc..
Share some of your experience there if you don’t mind..
For example is there any Food Market close by because I like to cook..??
Thanks Arthur
Chuck
Vancouver, BC, Canada
Nov 15, 2010 @ 13:29:33
Hi Jan, I have my money direct deposit into my bank account in U.S. and I keep a supply of checks here in the Philippines. When ever needed I write a check to my US Dollar account at China Bank. After 14 days it is in my account here and I withdraw it and change it to Pesos. The cost is nothing, free checks, no exchange charges, just a little extra time involved.
Nov 15, 2010 @ 16:00:41
Hi Marvin,
Thanks for your comment.
What do you do when your checks are finished? or get wet / lost ?
Is two weeks acceptable to you to cash a check?
What do you do if you need some money immediately?
Nov 16, 2010 @ 13:28:15
Well Jan I have never had a problem with checks getting wet or lost and you should never let your funds get so low that you need all of it today…two weeks or even a month delay in paying for something or someone is part of the culture here.
Nov 16, 2010 @ 14:55:56
Well Marvin,
Maybe you should check your bank if they offer internet-banking. You never have to wait more than a few days !!! And you do not need those paper checks anymore.
Nov 19, 2010 @ 21:24:45
Jan;
Great Information I read alot of articles on this topic and it seems to me that direct deposit would be no.1 followed by once a month checks. The only Philippine Bank outlet we have here in Jacksonville FL is the PNB. So I guess that will be the bank I will work with. if you have any other banks with rates and do direct deposit please let me know.
Nov 20, 2010 @ 13:28:10
Bruce,
I am not familiar with the banking system in the USA, so I cannot give you anything. Maybe you can check the internet about it? Search term: Philippines banks in Florida. But I will keep my eyes and ears open.
Nov 22, 2010 @ 19:53:34
Try HSBC international banking (Premiere) if you have the funds. Open an account in the USA and Manila and enjoy free transfers.
I have a USD and a PHP account in Manila.
Nov 07, 2011 @ 02:20:33
I myself use HSBC ATM’s simply to reduce the cost of ATM fund withdrawals. Most other bank ATM’s will only let you get PHP10K, whereas HSBC has a 40K limit. Worth the extra 3 hours commuting with a grocery stop in the middle.
Of note: seems HSBC ATM’s always work, unlike other banks. Really! Problem is that the nearest HSBC branch/ATM may be very very far from your home. Sigh.
Yes, I know you can bank with HSBC and then withdraw from any connected ATM for a 10peso fee, but sooner or later you need to *go* to the branch far far away.
Nov 07, 2011 @ 02:08:32
Your question requires a complicated answer. Rather than repeat all that I and everyone else has already written over the years, I suggest you Google on some keys that include ‘Philippines’ ‘rent’ ‘cost’ ‘safety’ ‘property’ and such.
I reply such since it’s all so relative to *where* you want go relocate in Phils.
General notes:
– Internet: wi-fi in many urban locations. wireless for many areas. DSL with landline in most urban subdivisions but *ASK* the provider and expect that *if* you can get a port it will likely take a month, two, or more for installation.
– fresh food to cook: in most places you only need to choose which direction to walk in for 5 minutes. Unless you’re really in the middle of nowhere the worst is a 10minute jeepnie or tricycle ride away. Or sit at home and wait for tindera to call out “isda!” “gulay” “saging” “maize” “bulot” etc.
Nov 07, 2011 @ 06:36:30
Cheques? Meaning paper telling some foreign (non-Philippines) bank to transfer money? Good luck !!!!!!!!!!!! I have never never NEVER had any Phils bank entertain depositing a non-Pinoy check. I wish they would, it would make international business much easier, but no.
Always best if you have at hand:
a/ your foreign-bank access/client card linked to accounts with sufficient funds on deposit and/or available credit-line.
b/ credit-cardS (yes cardS, plural, meaning more than one or two) with available credit.
c/ keep your foreign “home” banks happy, whatever the cost, unless you have tons of local Phils income and don’t need your money from overseas. Your Phils bank/ATM is simply your access route to where your money really is. Act accordingly.
Note that once your foreign banks realize that you’re resident abroad (generally over the 6-month-away limit), expect that after a few years they will start to cancel your accounts, even if you faithfully pay them on time without exception, unless you figure out how to keep your foreign banking arrangements alive. Deal with this proactively, lest you be caught paying interest and debt with NO credit, no cash!
You can; just a word to the wise; keep the overseas sky from dropping on your head without warning.