If the average balance in your deposit account is only Php5,000 or less, you’re actually in good company. Almost half of the country’s households with bank accounts have only that much in deposits, according to the Bangko Sentral ng Pilipinas (BSP)’s latest Consumer Finance Survey released in January.
That’s equivalent to 1.6 million households today. The country has a total of 24 million households as of 2017, based on population projections of the Philippine Statistics Authority. But only 14 percent of these maintain a bank deposit, according to the BSP survey which was done in 2014. An overwhelming majority of those without bank accounts say they don’t have enough money to open one.
For the estimated 3.4 million households with bank accounts, the median deposit is Php5,300, according to the BSP survey. The median is the midpoint if all the deposits were ranked from smallest to biggest, and is a good indicator of the typical depositor’s bank balance. On the other hand, the average deposit is Php206,275, reflecting the skewed distribution of deposits in favor of large holders.
In general, the amount of deposits held by most Filipino depositors is quite small—another sign of the generally low savings rate of Filipinos. About 19.4 percent of households with bank accounts, equivalent to 652,821 households, own deposits of only Php1,000 or below. Another 28.4 percent, or 955,677 families, keep between Php1,000 and Php5,000 in deposits. About 15.3 percent, or 514,854 households, have deposits ranging from Php5,000 to Php10,000.
At the other end, those with deposits of at least Php1 million make up only almost two percent of households with bank accounts. That’s equivalent to more than 63,000 households. Still, though only few in numbers, these households own more than 80 percent of total deposits in the country’s banking system, according to BSP data as of last year.
The 2014 survey also reveals that 53.7 percent of households with bank deposits, equivalent to 932,121 households, are paid an interest rate of only two percent or less. At the other end of the range, some five percent, or 168,253 households, enjoy yields of between 6.1 percent and 10 percent.
About eight of every 10 households with bank deposits have only one account. Some 15.4 percent have two accounts but around four percent, equivalent to 134,502 families, have between three and six deposit accounts.